Optimize your sales on Amazon with EDI

Summary :

• How do you integrate with Amazon?
• Selling on Amazon: combining EDI and API
• Amazon EDI specifications
• How can EDI boost your sales on Amazon?
• Setting up EDI for your Amazon store
• Best practices for making the most of EDI with Amazon
• Conclusion: EDI with Amazon

In the world of e-commerce, Amazon is the essential marketplace for sellers wishing to develop their audience. To integrate with Amazon Vendor Central or Amazon Seller Central platforms, there are two complementary options: EDI and API.

EDI is a technology that enables companies to transfer business documents electronically and automatically. Orders, shipping notices, invoices, etc. can be exchanged electronically.

In this article, find out how EDI can help you optimize your sales on Amazon. Whether you’re a practiced seller or just starting out on Amazon, this article will provide you with the keys to take full advantage of this solution.

How do I join Amazon?

First, let’s look at the distinction between the two platforms:

• Amazon Vendor Central: enables suppliers to sell products “sold and shipped by Amazon”.
• Amazon Seller Central: enables suppliers to sell their products directly on the marketplace.

Until 2020, the only way to connect to these platforms was via EDI. But since 2020, it has also been possible to do so via the API developed by Amazon, SP-API (Selling Partner API). This API is an evolution of the API-MWS (Marketplace Webservices) used to integrate with Amazon Seller Central.

It enables greater automation, better knowledge of customer paths, and better tracking of your advertising campaign spend. However, it does not replace EDI. Certain functionalities, such as updating unavailable items or invoicing, for example, are not yet available via API.

Selling on Amazon: combining EDI and API

These two technologies can work together. So, you can benefit from the advantages of both.

EDI can be used to exchange data on orders, deliveries, stock levels and invoicing. You can also use the API to manage the status of sales, deliveries and payments.

The combination of the two enables management as close as possible to real time.

Amazon EDI specifications

Amazon provides EDI suppliers and service providers with comprehensive, detailed documentation of its requirements. This includes EDI standards and product coding rules. Amazon recommends the use of the GTIN, but leaves the customer free to choose between Amazon ASIN, UPC, EAN/ISBN-13, Vendor SKU and ISBN-10.

The EDI messages most frequently exchanged on Amazon are ORDERS (order), ORDRSP (order response), DESADV (delivery advice), INVOIC (invoice) and INVRPT (inventory report).

However, this solution does not allow you to create product sheets or descriptions. For this, you need to go directly to the Amazon Vendor Central interface.

There are several ways to connect to Amazon’s platform: AS2, VAN EDI or SFTP.

Amazon’s rules are strict. Suppliers are penalized for incorrect information or long delays in submitting information. This can impact their scoring and, consequently, their ranking in search results.

How can EDI boost your sales on Amazon?

EDI is not only a solution for improving operational efficiency, it can also have a significant impact on your Amazon sales.

By automating processes and improving data accuracy, it enables sales staff to better manage their inventory, respond faster to orders and maintain a high level of customer satisfaction.

Process automation

One of the main benefits of EDI is the automation of business processes. By automating tasks such as order processing and invoice issuing, companies can significantly reduce processing time and the errors associated with manual data entry.

For example, when you receive an order from Amazon, your EDI software can automatically generate an invoice and update your inventory management system, all without human intervention.

This speed and precision means you can respond faster to orders and improve your delivery times. So you can increase customer satisfaction.

Better data accuracy

Manual input errors can lead to problems such as incorrect orders, delayed shipments and billing issues. EDI eliminates these errors by automating data transfer between systems.

This means that information on products, prices and quantities is always accurate and up-to-date. Better data accuracy translates into better inventory management, smoother transactions and more satisfied customers, which can lead to better reviews, better scoring and increased sales on Amazon.

Optimized inventory management

Effective inventory management is crucial to maximizing your sales on Amazon. EDI enables real-time synchronization of inventory information between your internal management system and Amazon.

This means your inventory is always up to date, reducing the risk of stock-outs. With an accurate, real-time view of your stock levels, you can make more informed decisions on replenishments and promotions, ensuring that your products are always available to customers when they need them.

By integrating EDI into your Amazon strategy, you can streamline your internal processes and offer your customers a better experience.

Setting up EDI for your Amazon store

Using EDI with Amazon may seem complex, but with the right steps and the right supplier, you can simplify this process and start reaping the benefits of this technology quickly.

Here’s a guide to help you implement EDI efficiently.

Choosing the right EDI supplier

The first step in implementing EDI is to choose the right supplier. It is essential to take several criteria into account when selecting your provider:

• Compatibility: Check that the EDI service provider is compatible with your existing systems (ERP or other management software) and is familiar with Amazon’s specific features. Smooth integration helps avoid technical problems.
• Technical support: Good technical support is essential to resolve problems quickly and ensure a smooth implementation. Look for suppliers who offer responsive and competent support.
• Cost: Compare the initial and recurring costs of different EDI providers.

See our article Choosing your EDI partner in 5 steps to find out more.

EDI solution implementation

Once you’ve chosen your service provider, you can move on to setting up your EDI project. Here are the main steps:

• Preparation and configuration: with your help, your EDI solution provider will set up the EDI system best suited to your needs. Then comes the mapping stage to translate the files.
• Testing and validation: Before going into production, it’s important to carry out rigorous tests to ensure that all processes are working properly. This includes testing data exchanges with Amazon for accuracy and reliability.
• Training and support: Finally, think about training the teams involved in the project. Make sure you have all the information you need to contact your EDI service provider’s support department as easily as possible.

If you already have an EDI solution, you simply need to add a new partner. You’ll need to create a new connection, set up and test it.

Best practices for making the most of EDI with Amazon

Integrating EDI into your Amazon store can bring many benefits, but to maximize its effectiveness, it’s important to follow certain best practices. Here are a few tips to help you make the most of EDI and optimize your sales on Amazon.

It is important to regularly monitor and analyze the performance of your processes:

• Ongoing optimization: EDI is not a “set it and forget it” solution. It’s important to make ongoing adjustments based on performance data and feedback. For example, if you notice frequent errors in orders, examine the processes to identify and correct the source of the problem.

Conclusion: EDI with Amazon

Optimizing your sales on Amazon requires effective tools and strategies, and EDI is a good way to achieve this. By automating data exchanges, you can significantly improve your processes and reduce errors. You’ll also improve buyer satisfaction.

EDI represents a real opportunity for sellers on Amazon’s marketplace.

At TX2 CONCEPT, we can help you set up an EDI solution to connect to the Amazon platform. We understand the specifics of this type of project.

Please do not hesitate to contact us for further information. We’d be delighted to answer any questions you may have.