You Just Got Accepted into Walmart—Now What’s This “EDI” Thing?

First off—congrats.

Getting accepted into Walmart is no small thing. Whether you landed a test order or got approved as a new supplier, it means your product made the cut.

Now comes the part no one tells you about in the early conversations:

EDI.

Maybe you’ve heard the term in passing. Maybe not.

But once you’re in, EDI isn’t optional—it’s required.

And if you’ve never worked with it before, you’re not alone. Most first-time suppliers haven’t. 

But if you want to keep doing business with Walmart (or any major U.S. retailer), it’s something you need to understand—and get right from the start.

Let’s walk through what EDI actually is, what it does, and why it matters so much once you're on the inside.

What Is EDI?

EDI stands for Electronic Data Interchange.

That sounds technical, but the idea is simple: EDI lets companies like Walmart and its suppliers send information back and forth automatically—without emails, PDFs, or spreadsheets.

When Walmart places an order with you, they don’t send it by email. They send it via EDI. Your system is expected to catch it, process it, respond to it, and generate everything downstream—shipments, tracking labels, invoices—without human input.

It’s machine-to-machine communication. Fast, standardized, and unforgiving if done wrong.

EDI has been around since the 1960s and became standard in U.S. retail in the ’80s and ’90s. Walmart was one of the pioneers of using EDI to scale supplier communications, and today, every major U.S. retailer requires it.

Why Retailers Like Walmart Rely on EDI

Here’s the big picture:

Walmart works with tens of thousands of suppliers. Their systems handle millions of transactions per day.

They can’t afford to manually email purchase orders, double-check shipping details, or chase missing invoices.

EDI allows them to:

• Automatically send and receive orders
• Reduce errors and eliminate manual data entry (no more typos or missing attachments)
• Keep shelves stocked and products moving
• Track compliance at scale

To do business with Walmart, you have to plug into their systems. EDI is how that connection happens.

The EDI Documents You’ll Actually Use

You’ll hear a lot of jargon—EDI 850, 856, 810, and so on—but here’s what it really means:

There are others depending on your category—like price updates, returns, or inventory availability—but these are the ones that matter most for fulfillment and payment.

What Raw EDI Actually Looks Like

In case you’re wondering, here’s what a raw EDI file looks like under the hood:

ISA*00*          *00*          *ZZ*WALMART        *ZZ*SUPPLIER001   *230508*1200*U*00401*000000001*0*P*>

GS*PO*WALMART*SUPPLIER001*20230508*1200*1*X*004010

ST*850*0001

…

It’s not human-friendly—but it’s perfect for machines. And it’s why having the right system in place matters more than ever.

Why EDI Compliance Matters (A Lot)

Here’s the short version:

If your EDI setup fails, Walmart won’t wait for you to fix it.

They don’t send reminders. They don’t switch to email. They issue chargebacks.

You can get fined for:

• Missing or late order acknowledgments
• Incorrect shipment info
• Labeling errors due to mismatched data
• Invoices that don’t match the shipment

In some cases, repeated EDI failures lead to canceled POs or suspended supplier status.

Getting it right protects your margins and your relationship.

What You Need to Be EDI-Ready

So what does it take to set this up properly?

• An EDI provider – A service that formats, maps, and transmits data between you and Walmart
• An ERP system – So you can receive and send EDI documents without manually entering data and so your warehouse, inventory, and accounting can all stay in sync
• Document mapping – Every EDI message needs to match your product codes, warehouse info, and data structure
• Testing and certification – Before going live, you’ll need to pass EDI tests with Walmart

How ERP and EDI Work Together

Technically, you could do EDI without an ERP system—but you'd be manually entering and reconciling everything, which defeats the whole point.

With a proper ERP system:

• Walmart’s orders flow directly into your system
• Shipping labels, ASNs, and invoices are auto-generated
• Inventory is updated in real time
• Your warehouse stays aligned with what the retailer sees

This is the backbone of real, scalable retail operations.

At CrossBridge, we use our own custom ERP and connect it directly to your EDI provider—so the process is fast, clean, and hands-off for you.

Who Are the Major EDI Providers?

Here are a few of the top names trusted in the U.S. retail space:

• SPS Commerce – Walmart’s preferred partner
• TrueCommerce – Solid integration and support
• Babelway (Tungsten) – API-focused and flexible
• DiCentral (now part of TrueCommerce) – Often used by mid-sized suppliers
• Cleo Integration Cloud – Popular in logistics-heavy categories

We’ve worked with all of them and can help you select, configure, and test the best fit for your business.

Let Us Handle It for You

If all of this sounds like a lot, that’s because it is—if you try to do it alone.

At CrossBridge, we help new suppliers hit the ground running by handling EDI from start to finish:

• We match you with the right provider
• Set up and test your entire document flow
• Integrate with your warehouse and ERP
• Monitor every transaction for errors or issues
• Keep you compliant, accurate, and on time

Whether this is your first Walmart order or you're preparing to scale, we make sure you don’t lose momentum over the technical details.

Want to talk through your setup?

Book a quick strategy call and we’ll walk you through what’s needed based on your product, retail partner, and supply chain.