EDI to CSV for Small Business Vendors: Affordable Retailer Compliance

The Small Business Vendor EDI Problem

You just got your first purchase order from Walmart, Target, or Amazon—congratulations! Then you open the file and see this:

Your retailer says you need "EDI compliance" to continue doing business with them. You research EDI software and get quotes for $500-$5,000 per month plus $5,000-$50,000 implementation costs. For a small business processing 20-50 orders per month, this is economically impossible.

Here's the reality: Most retailers don't actually require expensive EDI software. They require EDI compliance—which means correctly processing EDI files and meeting shipping/delivery requirements. You can achieve compliance by converting EDI files to CSV and manually processing them, at 90% lower cost than full EDI software.

What Small Business Vendors Actually Need

Let's clarify what retailers actually require vs. what EDI software salespeople tell you:

Key insight: The vast majority of small vendors (processing under 200 EDI files per month) receive EDI files via email or retailer web portals and submit responses via those same web portals. You don't need EDI transmission software—you just need to read incoming EDI files and manually enter the data into your system.

Step-by-Step: Meeting EDI Requirements as a Small Business

Step 1: Receive EDI 850 Purchase Orders

Retailers send you EDI 850 purchase orders via one of these methods:

• Email: Many retailers email EDI files directly to small vendors
• Web portal download: Walmart Retail Link, Target Partners Online, Amazon Vendor Central
• SFTP/AS2: Rare for small vendors; usually only required at high volume

What you need to do: Download the .edi or .txt file from email or portal. Upload it to PlainEDI and convert to CSV. The CSV will show:

• PO number and order date
• Ship-to location (store address or distribution center)
• Item UPC/SKU, description, quantity ordered
• Ship date (MABD - Must Arrive By Date or requested ship date)
• Department number, FOB terms, payment terms

Time required: 30 seconds to convert EDI to CSV

Step 2: Enter Order Data into Your System

Now you have a clean CSV spreadsheet showing all order details. Enter this data into your:

• QuickBooks: Create sales order manually from CSV
• Shopify/WooCommerce: Create order in admin panel
• Excel/Google Sheets: Track orders in master spreadsheet
• Warehouse system: Print pick list from CSV data

Time required: 5-10 minutes per order (vs. 15-30 minutes deciphering raw EDI)

Step 3: Fulfill the Order and Prepare Shipment

Pick, pack, and prepare your shipment according to the PO specifications. Make sure to note:

• Actual ship date: When you hand off to carrier
• Tracking numbers: From UPS/FedEx/freight carrier
• Carton details: Number of cartons, weight, dimensions
• SSCC barcode numbers: If retailer requires GS1-128 labels (Walmart, Target, Home Depot)

Most retailers require GS1-128 shipping labels on pallets and master cartons. You can generate these labels using:

• Free online generators: BarTender, Zebra Designer
• Third-party label services: $20-$50/month for unlimited label generation
• Your 3PL/warehouse: Many warehouses provide GS1-128 labeling as a service

Step 4: Submit 856 ASN (Advance Ship Notice)

Critical requirement: Most retailers penalize missing or late ASNs with $50-$100+ chargebacks per shipment.

How to submit ASNs without EDI software:

• Walmart: Retail Link portal → "ASN Creation" tool (web form, no EDI file needed)
• Target: Partners Online → "Create ASN" (web form)
• Amazon: Vendor Central → "Ship" → Create shipment (web form)
• Home Depot: Supplier Portal → "Create ASN" (web form)
• Lowe's: Lowe's Supplier Portal → "ASN Submission" (web form or upload)

Important: You enter the same data that would go in an EDI 856 file (PO number, ship date, tracking number, carton count, SSCC barcodes) but via a web form instead of an EDI transmission. The retailer's system converts your web form submission into an EDI 856 internally.

Time required: 5-10 minutes per shipment

Step 5: Submit 810 Invoice

After shipment, you need to invoice the retailer. Most retailers accept invoices via web portal:

• Walmart: Retail Link → "Invoice Entry"
• Target: Partners Online → "Create Invoice"
• Amazon: Vendor Central automatically generates invoice after ASN confirmation (no action needed)

Time required: 5 minutes per invoice

Step 6: Monitor Payments and Deductions

Retailers send EDI 820 payment remittance files showing how much they paid you and any deductions/chargebacks. Convert these to CSV to see:

• Invoice numbers paid
• Payment amount
• Deduction codes and amounts (late shipment, missing ASN, price discrepancy, etc.)
• Payment date and check/ACH number

Why this matters: Walmart takes an average 5.8% in deductions from supplier invoices. You need to review 820 remittances to identify incorrect deductions and file disputes.

Real Cost Comparison: Small Business Scenario

Let's compare the true cost for a small food manufacturer supplying Walmart and Target with 50 EDI purchase orders per month:

Common Challenges for Small Business Vendors (And Solutions)

Challenge 1: "My retailer says EDI is mandatory"

What they actually mean: You must process EDI files correctly and meet compliance requirements (OTIF, ASN accuracy).

What they DON'T mean: You must buy expensive EDI transmission software.

Solution: Ask your retailer account manager: "Can I receive purchase orders via email/portal and submit ASNs/invoices via your web portal?" The answer is almost always YES for vendors processing under 200 orders per month. Retailers want you to be EDI-compliant (meeting requirements), not necessarily using EDI transmission software.

Challenge 2: "I don't understand EDI segments and codes"

The problem: Raw EDI files use cryptic segment codes (BEG, REF, DTM, N1, PO1) and qualifiers (002, DP, BY, ST) that are impossible to understand without EDI expertise.

Solution: Convert to CSV. PlainEDI translates all EDI segments into plain English column headers:

• BEG segment → "PO Number", "PO Date", "PO Type"
• REF*DP → "Department Number"
• DTM*002 → "Ship Date (MABD)"
• N1*ST → "Ship-To Name", "Ship-To Address"
• PO1 segment → "Item Quantity", "UPC", "Description", "Unit Price"

You don't need to learn EDI syntax. The CSV shows you exactly what's in the order in a normal spreadsheet format.

Challenge 3: "Each retailer has different EDI requirements"

The problem: Nearly two-thirds (63%) of IT decision-makers say EDI onboarding takes too long because every trading partner has different customized requirements.

Examples:

• Walmart requires MAN*GM segments with SSCC-18 barcodes in 856 ASNs
• Target requires CTN packaging codes and Perfect Order compliance (starting May 4, 2025)
• Home Depot needs specific GLN location identifiers
• Amazon requires 810 invoice submission within 24 hours of shipment

Solution: PlainEDI automatically detects the retailer (Walmart, Target, Amazon, etc.) and formats the CSV output according to that retailer's specific EDI structure. Walmart-specific segments like MAN*GM SSCC barcodes appear in dedicated CSV columns. You don't need to manually configure different mappings for each retailer.

Challenge 4: "I'm afraid of chargebacks and penalties"

Common penalties:

• Walmart: 3% COGS penalty if OTIF falls below 90% (reduced from 95% in February 2024)
• Target: $0.75 per carton ASN penalty (min $100) starting May 4, 2025
• Home Depot: $1,000 for missing ASN, $250 for late ASN
• Amazon: Shortage chargebacks plus 10-15% handling fee

Solution: Penalties are based on operational failures (late shipments, missing ASNs, inaccurate quantities), not on which software you use. Whether you process EDI files with $5,000/month software or a $99/month CSV converter makes no difference to compliance—what matters is:

• Shipping on the MABD date specified in the 850 PO
• Submitting ASNs before shipment arrival (usually 24-48 hours before delivery)
• Matching invoice quantities to actual shipment quantities
• Using correct UPC/GTIN codes and SSCC barcodes

All of this can be tracked manually in a spreadsheet when you're processing 20-50 orders per month. You don't need a $500/month compliance monitoring dashboard.

Challenge 5: "I'm growing—when do I need real EDI software?"

Thresholds to consider upgrading:

• Volume: 200+ EDI files per month (10+ per business day). Manual data entry starts taking 2-3 hours per day.
• Trading partners: 10+ retailers with different EDI requirements. Managing multiple retailer specifications manually becomes error-prone.
• ERP integration: You implement NetSuite, SAP, or Microsoft Dynamics and want real-time order sync.
• Transmission mandate: A major retailer requires direct AS2/SFTP transmission and won't accept web portal submission.

Growth path example:

By starting with PlainEDI for 3 years, you saved $33,672 compared to buying full EDI software from day one.

Retailer-Specific Guides for Small Vendors

Walmart Suppliers

What you'll receive: EDI 850 purchase orders via Retail Link download or email

Critical fields in Walmart 850 POs:

• Department number (REF*DP): Used for routing and accounting
• MABD date (DTM*002): Must Arrive By Date—ship to arrive by this date, not ship on this date
• DC number (N1*ST): Walmart distribution center location
• GTIN/UPC (PO1 segment): Must exactly match Walmart's item setup

How to submit ASNs: Retail Link → "ASN Creation" web form (no EDI transmission needed)

OTIF requirement: 90% or higher (February 2024 change—previously 95%). Below 90% triggers 3% COGS penalty.

Common chargebacks: Code 21 (missing ASN), Code 22 (late shipment), Code 25 (short shipment), Code 11 (price difference)

Target Suppliers

What you'll receive: EDI 850 purchase orders via Partners Online download

Critical compliance: Perfect Order Program starts May 4, 2025. $0.75 per carton penalty for ASN errors (minimum $100 per incident).

How to submit ASNs: Partners Online → "Create ASN" web form

Important: Target requires CTN packaging codes in 856 ASNs. If submitting via web portal, you'll enter carton count and packaging type in the form fields.

Fill rate requirement: 95% or higher. Below 95% can trigger 5% COGS penalty.

Amazon Vendor Central Suppliers

What you'll receive: EDI 850 purchase orders via Vendor Central download

How to submit ASNs: Vendor Central → "Ship" → Create shipment (web form, very user-friendly)

Invoice requirement: Submit 810 invoice within 24 hours of shipment. Amazon Vendor Central auto-generates the invoice based on your ASN—you just need to confirm it.

Dispute window: Only 11 days to dispute chargebacks (shortest window among major retailers)

Common chargebacks: Shortages (quantity received less than ASN), price mismatches, late deliveries

Home Depot Suppliers

ASN penalty: $1,000 for missing ASN, $250 for late ASN, $100 for missing TMS Ship ID

How to submit ASNs: Home Depot Supplier Portal → "Create ASN"

OTIF requirement: 90% on-time, 98% in-full

Labeling: GS1-128 barcodes required on all pallets and master cartons. Missing or incorrect labels trigger $5-$10 per carton penalties.

Tools and Resources for Small Business Vendors

EDI File Conversion

• PlainEDI: $99/month unlimited or $3.90/file. Supports 850, 855, 856, 810, 820, 846, 997 for Walmart, Target, Amazon, Home Depot, Lowe's, Costco, Best Buy, and more.

GS1-128 Barcode Labels

• BarTender: Free label design software (paid version for advanced features)
• Zebra Designer: Free for Zebra printers
• LabelJoy: $50 one-time purchase
• Online generators: Various free SSCC-18 barcode generators

Retailer Web Portals

• Walmart Retail Link: supplier.walmart.com
• Target Partners Online: partners.target.com
• Amazon Vendor Central: vendorcentral.amazon.com
• Home Depot Supplier Portal: supplierportal.homedepot.com
• Lowe's Supplier Portal: Access through Lowe's account manager

Accounting/Order Management

• QuickBooks: Most common for small vendors. Import CSV data manually.
• Excel/Google Sheets: Free order tracking. Create master spreadsheet with all POs, ship dates, tracking numbers.
• Shopify: If you also sell direct-to-consumer, track retail orders in same platform

The Bottom Line for Small Business Vendors

You can meet major retailer EDI requirements without expensive EDI software.

Here's what you actually need:

1. CSV converter to read incoming EDI files ($99/month)
2. Retailer web portal access to submit ASNs and invoices (free from retailer)
3. GS1-128 label software for shipping labels (free to $50)
4. Spreadsheet or QuickBooks for order tracking (free to $50/month)

Total cost: $100-$200/month vs. $500-$5,000/month for full EDI software.

As you grow beyond 200 orders/month or 10 trading partners, reevaluate whether EDI software ROI makes sense. Until then, save $5,000-$60,000 per year and invest that money in inventory, marketing, or hiring.

Frequently Asked Questions