Landing Walmart as a retail partner is a defining moment for any consumer brand. With over 4,700 U.S. stores and $611 billion in annual revenue, Walmart represents the single largest sales opportunity in American retail.
But here’s what most brands discover after the celebration: becoming a Walmart supplier and staying a profitable Walmart supplier are two very different challenges.
The difference? EDI compliance.
Walmart pioneered electronic data interchange in retail. They mandated EDI for suppliers in 1988 - decades before most retailers required it. Today, their requirements are among the most rigorous in the industry. Every purchase order, advance ship notice, and invoice must flow through EDI in precise formats. Deviations trigger chargebacks that can erode margins by 2-5% or more.
This guide covers everything you need to know about Walmart EDI requirements in 2026:
Whether you’re preparing for your first Walmart purchase order or optimizing an existing supplier relationship, this guide will help you achieve and maintain full EDI compliance.
Walmart EDI (Electronic Data Interchange) is the standardized system Walmart uses to exchange business documents with suppliers electronically. Instead of paper purchase orders, emails, and manual invoices, all transactions flow through structured data formats that integrate directly with Walmart’s systems.
Key Point: Walmart requires ALL suppliers to be EDI-capable. There is no manual alternative for ongoing business. If you want to sell to Walmart, you must implement EDI.
Walmart uses the ANSI X12 EDI standard, the dominant format in North American retail. Specifically, Walmart requires:
Walmart categorizes suppliers into different programs, each with specific EDI requirements:
Direct Import Suppliers
Domestic Suppliers
DSD (Direct Store Delivery) Suppliers
Marketplace Sellers
Walmart requires suppliers to support a core set of EDI transaction sets. Here’s the complete breakdown:
EDI 850 - Purchase Order The foundation of every Walmart transaction. When Walmart wants to buy products, they send an 850.
EDI 855 - Purchase Order Acknowledgment Your confirmation that you received and can fulfill the purchase order.
EDI 856 - Advance Ship Notice (ASN) The most chargeback-prone document. Tells Walmart exactly what’s coming, when, and how it’s packaged.
EDI 810 - Invoice Your bill to Walmart for goods shipped.
EDI 846 - Inventory Inquiry/Advice
EDI 860 - Purchase Order Change Request
EDI 865 - Purchase Order Change Acknowledgment
EDI 820 - Payment Order/Remittance Advice
Setting up EDI with Walmart involves multiple phases. Here’s what to expect:
Step 1: Accept Supplier Agreement After Walmart’s merchandising team approves your products, you’ll receive a Supplier Agreement through Retail Link. This documents:
Step 2: Complete Supplier Information Register your company details in Walmart’s systems:
Step 3: Obtain Walmart Supplier Number Walmart assigns a unique supplier number that identifies you across all their systems. This number appears on every EDI transaction.
Step 4: Choose an EDI Provider You have three options for Walmart EDI connectivity:
Russ Wallace, CEO & Co-founder of Freestyle, emphasizes speed in provider selection:
“As a startup, our biggest advantage is speed of execution. Having a partner, like Crstl, who shares that same advantage and acts quickly was incredibly valuable, especially when it allowed us to get EDI set up with UNFI sooner, which in turn allowed us to secure better payment terms.”
Step 5: Configure AS2 Connection AS2 is Walmart’s required communication protocol. Configuration involves:
Step 6: Build Document Mappings Your EDI system must translate Walmart’s specific formats to your internal systems:
Step 7: Complete Certification Testing Walmart requires testing before you can transact live. The certification process includes:
Document Testing
Scenario Testing
Step 8: Receive Production Approval
Once testing passes:
Step 9: Process First Live Orders
Step 10: Ongoing Compliance Management
EDI is not “set and forget”:
Retail Link is Walmart’s supplier portal - the command center for your Walmart business. While EDI handles automated document exchange, Retail Link provides:
EDI and Retail Link are complementary systems:
Walmart’s OTIF program measures supplier performance on two dimensions:
On-Time: Did the shipment arrive within the delivery window?
In-Full: Did the shipment contain the correct quantities?
EDI directly impacts OTIF:
OTIF failures trigger chargebacks - typically 3% of the affected order value.
Before selling to Walmart, you need a GS1 Company Prefix - the foundation of all your product identification.
What it is: A unique identifier assigned to your company by GS1 (the global standards organization)
What you get:
Cost: $250 initial fee + $50/year (for up to 10 products) to $10,500 initial + $2,100/year (for up to 100,000 products)
GTIN (Global Trade Item Number) is what most people call a “UPC.” Walmart requires GTINs on:
Every Sellable Unit
GTIN-12 Format
SSCC (Serial Shipping Container Code) identifies every carton you ship to Walmart.
Structure: 18-digit code following GS1 standards
Requirements:
Walmart requires GS1-128 compliant shipping labels on every carton:
Required Elements:
Format Specifications:
Josh Lazenby, Senior Operations Manager at KitchenSupply, highlights support importance:
“The ability and willingness of Crstl to help is night and day compared to other providers. They’re not just a vendor; they’re genuinely invested in our success.”
The ASN is the most critical - and most error-prone - EDI document for Walmart suppliers. Getting it right prevents chargebacks and maintains your compliance scores.
When to Send:
Why Timing Matters:
Every Walmart ASN must include:
Header Level (Shipment)
Order Level
Pack Level (Tare)
Item Level
Walmart ASNs follow a specific hierarchical structure:
Shipment (HL Level 1)
└── Order (HL Level 2)
└── Tare/Pack (HL Level 3)
└── Item (HL Level 4)
This hierarchy must be maintained exactly. Incorrect nesting causes rejections.
SSCC Mismatches
Quantity Discrepancies
Missing Cartons
Timing Violations
Walmart deducts chargeback fees directly from your payments. Common categories include:
Must Arrive By Date (MABD) Violations
ASN Errors
Labeling Violations
Packaging Violations
Modern AI-powered EDI platforms prevent chargebacks through:
Pre-Transmission Validation
Predictive Compliance
Real-Time Monitoring
Ryan Chen, CFO & Co-founder of Neuro, experienced this difference:
“Crstl delivers a product that makes traditional platforms look like a protection racket. As a fast-emerging brand, Crstl enables us to adapt and scale without viewing us as another pocket to pick.”
Use this checklist to verify your Walmart EDI readiness:
Walmart requires all suppliers to exchange documents electronically using ANSI X12 EDI standards over AS2 protocol. The core required documents are: EDI 850 (Purchase Order), EDI 855 (PO Acknowledgment), EDI 856 (Advance Ship Notice), and EDI 810 (Invoice). Suppliers must also comply with GS1 standards for product identification (GTIN/UPC) and shipping labels (GS1-128 with SSCC).
With legacy EDI providers, Walmart EDI setup typically takes 8-14 weeks from contract to go-live. This includes provider onboarding (2-4 weeks), AS2 configuration (1-2 weeks), document mapping (2-4 weeks), and certification testing (2-4 weeks). Modern AI-powered EDI platforms can compress this timeline to 1-3 weeks total.
Walmart EDI costs vary based on your provider and transaction volume. Legacy providers typically charge setup fees ($1,000-5,000), monthly minimums ($300-1,000), and per-document fees ($0.10-0.50 per transaction). AI-powered EDI platforms often use flat subscription pricing ($500-2,000/month) without per-document fees. Additional costs include GS1 membership ($250-10,500/year) and potential integration development.
Non-compliance results in chargebacks deducted directly from your payments. Common penalties include 3% of PO value for OTIF failures, $50-500 per ASN error incident, and $25-200 per labeling violation. Persistent non-compliance can result in reduced orders, removal from supplier programs, or termination of the supplier relationship.
Walmart offers Retail Link web EDI for very low-volume suppliers, allowing manual document entry through their portal. However, this is not practical for suppliers with more than a few orders per week. Manual entry is error-prone, time-consuming, and doesn’t scale. Most suppliers need automated EDI integration.
OTIF (On-Time In-Full) is Walmart’s supplier performance metric. “On-Time” measures whether shipments arrive within the delivery window. “In-Full” measures whether shipments contain correct quantities. EDI directly impacts OTIF because ASN timing and accuracy determine how Walmart measures your performance. OTIF failures below threshold (typically 98%) trigger automatic chargebacks.
When you receive a chargeback, first identify the root cause using Retail Link data. Common causes include late ASNs, quantity mismatches, and labeling errors. Dispute invalid chargebacks through Retail Link’s dispute process within the allowed window (typically 30 days). For valid chargebacks, fix the underlying process issue to prevent recurrence. Track chargeback trends monthly to identify patterns.
Walmart retail (stores) and Walmart Marketplace (walmart.com third-party sellers) have different requirements. Retail suppliers use traditional EDI as described in this guide. Marketplace sellers use Walmart’s API-based integration platform instead of EDI. If you sell through both channels, you may need both integration types.
Walmart EDI compliance isn’t optional - it’s the foundation of a profitable supplier relationship. The retailers who thrive with Walmart treat EDI not as a technical burden but as an operational capability that enables growth.
The key takeaways from this guide:
1. Understand the RequirementsWalmart expects EDI 850, 855, 856, and 810 documents transmitted via AS2 protocol, with strict timing and accuracy requirements. Non-compliance triggers automatic chargebacks.
2. Invest in the Right InfrastructureYour EDI provider choice determines your speed to market and ongoing compliance burden. AI-powered platforms offer dramatically faster onboarding and built-in compliance safeguards.
3. Focus on ASN AccuracyThe EDI 856 (ASN) is where most chargebacks originate. Timing, SSCC accuracy, and quantity matching must be perfect. Predictive validation catches errors before they cost you money.
4. Monitor ContinuouslyWalmart EDI is not “set and forget.” OTIF scorecards, chargeback trends, and compliance metrics need regular attention. Address issues before they become patterns.
5. Scale with ConfidenceWhen your EDI foundation is solid, Walmart growth becomes an opportunity rather than an operational nightmare. The right infrastructure lets you focus on selling more product, not managing more complexity.
The brands winning with Walmart are those who view EDI compliance as a competitive advantage - not a necessary evil. Modern, AI-powered EDI makes that advantage accessible to emerging brands, not just enterprise suppliers with dedicated EDI teams.
Get compliant with Walmart in days, not months. See how AI-powered EDI prevents chargebacks and accelerates your retail growth.
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This guide is maintained by Crstl, the modern B2B commerce network. Crstl helps brands like KitchenSupply, Elavi, Freestyle, Neuro, and Immi achieve EDI compliance with major retailers including Walmart, Target, UNFI, and Whole Foods.