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Quick answer · Retailer orders

Do small brands need EDI to sell to retailers?

When retailers ask for EDI, what set-up really involves, and what it does not solve.

Short answer

Usually not on day one. Many retailers accept orders through their supplier portal, or as Excel, PDF or email, especially smaller accounts and retailers abroad. But when a large retailer makes EDI a condition of trading, you have no choice. Plan for it before you sign: set-up takes weeks, and each retailer needs its own connection.

When do retailers ask for EDI?

EDI (electronic data interchange) sends orders, delivery notices and invoices from the retailer's system to yours, in a standard format. In Europe, most retail EDI follows the GS1 EANCOM standard.

It started in grocery and hypermarkets, then spread to large department stores. Fashion still uses it less than other consumer goods.

Type of retailerWill they ask for EDI?
Independents and small department storesRarely. Orders come as Excel, PDF or email
Retailers abroadOften not. Files by email are common
Large online retailersOften their own supplier portal, sometimes EDI or an API
Large UK department storesOften preferred or required. John Lewis is one example
Hypermarkets and groceryAlmost always

What does EDI set-up involve?

  • One connection per retailer. Each link is point to point. You cannot reuse it for the next retailer.
  • The retailer's requirements first. You cannot start until the retailer sends its own message guide.
  • An EDI provider. Most brands use one to translate the messages and pass them to the ERP.
  • The messages that matter, in order: purchase orders, invoices, despatch advice, then sell-out reports.

In my experience, set-up costs between £5,000 and £50,000 or more per retailer, and can take up to 16 weeks. It always takes longer than promised.

From the field

At the lingerie brand I ran, about half our orders came through EDI and retailer portals. The other half still came by email, as Excel and PDF files.

EDI is a pipe. It moves the order, but it does not check it, it knows nothing about your stock, and every new retailer means a new connection.

From a European fashion brand

What does EDI not solve?

EDI moves the order. It does not check it against your terms, your stock or your catalogue. A wrong price arrives just as fast as a right one.

It also covers only the retailers who use it. The rest of your orders still arrive by portal, file or email. So whatever you decide on EDI, set one process that every order follows. Start with what to check on a retailer purchase order.

Where Gatsbee fits

Gatsbee handles the orders that do not come by EDI: portal downloads, Excel, PDF and email. It reads them, checks them against your terms and sends a clean order to your ERP. See how it works.

Questions

How long does EDI set-up take?

Several weeks per retailer, and up to 16 weeks in our experience. It depends on the retailer's requirements, your EDI provider and your ERP.

Can I start trading before EDI is ready?

Sometimes. Some retailers accept orders through their portal or by email while the connection is set up. Ask the buyer and the retailer's supplier team early.

What is an EDI provider?

A company that connects your system to the retailer's EDI, translates the messages and passes them to your ERP. Most small brands use one rather than building connections themselves.

Alexis, co-founder of Gatsbee

Alexis

Co-founder, Gatsbee

15 years in wholesale. Former CEO of a European lingerie brand selling to retailers across the UK, France and Germany.

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