Apparel EDI Compliance: How Apparel Brands Can Avoid Common Chargebacks

Selling your fashion line through major retailers opens up incredible growth—but it also comes with strict Electronic Data Interchange (EDI) requirements and a risk of chargebacks. These chargebacks (sometimes called expense offsets) are deductions retailers take from your payment when you don’t follow their EDI, shipping, or compliance rules. In the apparel industry, compliance failures can cost brands tens of thousands of dollars every year.

The good news? With the right strategy and the right tools—like AIMS360, the leading apparel ERP with built-in EDI—you can dramatically reduce chargebacks and streamline your compliance. In this article, we’ll break down the most common EDI-related chargebacks in the fashion industry, show how integrated EDI solutions (like AIMS360 apparel software) solve them, and answer the most common Fashion EDI and Apparel EDI questions. Keywords like SPS Commerce, CommerceHub, DSCO, and Radial are covered for brands seeking leading EDI solutions or integrations.

Most Common Apparel EDI Chargeback Violations—and How AIMS360 Fashion Software Prevents Them

1. Late or Missing ASNs (Advance Ship Notices)

The EDI 856 ASN is your electronic packing slip. Retailers expect it to be sent promptly and accurately for every shipment. A late, missing, or mismatched ASN is one of the most common—and costly—EDI violations, triggering fines per shipment or carton.

How AIMS360 helps:
AIMS360 automates ASN generation and transmission the moment a shipment is confirmed. ASN validation checks all retailer-specific fields and ensures data matches what’s shipped, reducing the risk of late or missing ASNs. Integration with EDI providers like SPS Commerce, CommerceHub, DSCO, and Radial means your ASN always gets delivered in the retailer’s required format.

2. Incorrect or Missing Shipping Labels (UCC-128 / GS1-128)

Every carton must have a compliant GS1-128 (UCC-128) barcode label. Retailers fine for missing, unreadable, or misformatted labels—and some deduct up to $8.50 per carton or even more.

How AIMS360 helps:
AIMS360 generates retailer-specific GS1-128 labels automatically from shipment and ASN data, prints them in the required format, and ensures every carton matches the ASN and label. The Scan & Pack workflow verifies that labels and contents are always in sync, dramatically reducing mislabeling errors.

3. Late or Missing EDI 810 Invoice

Not sending the EDI 810 invoice promptly after shipment is a frequent violation. Retailers may charge back for every late invoice, as it causes delays in payment processing and reconciliation.

How AIMS360 helps:
AIMS360 automatically creates and sends the 810 invoice as soon as your shipment is confirmed—using real-time data from your ASN and packing lists. Automated scheduling ensures you never miss the retailer’s billing deadline and prevents deductions for late invoicing.

4. Missing or Incorrect Functional Acknowledgments (EDI 997/999)

Some retailers require a functional acknowledgment (997 or 999) for every EDI document you send or receive. Failing to send these on time, or missing one, is considered non-compliance and may result in chargebacks.

How AIMS360 helps:
AIMS360 handles functional acknowledgments automatically, sending the required EDI 997/999 for every document in real time, ensuring uninterrupted EDI workflows and compliance with even the strictest retailers.

5. Failure to Send PO Acknowledgments (EDI 855/865)

Some retailers expect an EDI 855 (or 865 for changes) to confirm you’ve received and accepted their Purchase Order. Missing or late acknowledgments cause confusion and are a known source of chargebacks.

How AIMS360 helps:
AIMS360 generates and sends PO acknowledgments automatically, prompting your team to respond to every incoming PO and logging each acknowledgment, so you never miss a required response.

6. Purchase Order and Invoice Errors (Data Mismatches)

Chargebacks are triggered by mismatches between your EDI 810 invoice, EDI 856 ASN, and the original 850 PO—like shipping more/less than ordered, billing for unshipped goods, or pricing mistakes.

How AIMS360 helps:
AIMS360 connects sales, fulfillment, and accounting, so the EDI invoice is always generated from shipment data, ensuring perfect data alignment across every document. Built-in mapping prevents formatting errors, and required confirmations like 855s are managed automatically.

7. Unapproved or Unauthorized Substitutions

Shipping products not listed on the original PO, or substituting styles, colors, or sizes without retailer approval, is strictly forbidden and always triggers a chargeback.

How AIMS360 helps:
AIMS360 ties shipments directly to each PO and checks every style, color, and size. The warehouse system flags any unauthorized substitution attempts, preventing accidental shipment of unapproved items.

8. Carton Content Discrepancies (Concealed Shortage/Overage)

The contents of each carton must exactly match what’s declared on the ASN and carton label. Shortages, overages, or mixed SKUs in a carton—unless specifically allowed—will result in deductions.

How AIMS360 helps:
The AIMS360 Scan & Pack module ensures that every item is scanned into the correct carton and verified against both the ASN and packing list—eliminating content discrepancies and preventing these “concealed shortage” or “overage” fines.

9. Routing Guide Violations (Shipping & Delivery Issues)

Shipping with the wrong carrier, outside the scheduled delivery window, or without required routing approvals or paperwork is a classic cause of chargebacks.

How AIMS360 helps:
AIMS360 tracks each retailer’s routing guide, including approved carriers, SCAC codes, and required ship/cancel dates. Built-in shipping and BOL modules ensure compliance, and alerts notify your team if you’re at risk of missing any routing step.

10. Packaging and Ticketing Non-Compliance

Errors in product ticketing (UPC/price tags), missing hangers, wrong carton sizes, or packing slips not included can trigger deductions. Most major retailers require items to arrive “floor ready.”

How AIMS360 helps:
AIMS360 manages ticketing and packaging requirements for each trading partner. Automated ticket and hanger specs, plus compliance checklists and Scan & Pack, guarantee floor-ready shipments and reduce fines for non-compliance.

11. Non-compliant Drop Ship Fulfillment

For drop ship orders, failing to ship on time, not providing tracking, missing branded packing slips, or using an incorrect carrier can all result in chargebacks and may get your brand removed from a retailer’s drop ship program.

How AIMS360 helps:
AIMS360 automates drop ship order management—including branded documentation, carrier selection, shipping confirmations, and EDI tracking updates—ensuring you meet every SLA and requirement. The platform supports dropship programs and order flows through DSCO (now CommerceHub), Radial, and similar systems, making it ideal for brands supplying via wholesale or dropship models.

12. Other Common EDI Violations

• Incorrect or missing store/location code on ASNs/labels
• Failure to update EDI mapping after a retailer changes specs
• Improperly mixed SKUs in cartons (against PO requirements)
• Missing required compliance documents (like MSDS or certificates)
• Failure to transmit required documents through the retailer’s specified platform, such as CommerceHub, DSCO, or Radial

AIMS360’s EDI and compliance automation helps catch these errors before shipments leave your warehouse, protecting your vendor relationship and profits.

Chargeback Tracking, Task Management, and Resolution

Even with the best processes, a chargeback may still occur. What matters is your response.

How AIMS360 helps:
AIMS360 includes a robust chargeback management module:

• Log every chargeback, assign tasks for investigation/contest, and track resolution by dollar amount
• Tie chargebacks directly to orders, shipments, and EDI documents for fast root cause analysis
• Use the audit trail to contest chargebacks, with all supporting data at your fingertips
  This system helps you recover revenue and improve future compliance.

Frequently Asked Questions (FAQs)

What is EDI?

EDI (Electronic Data Interchange) is the standard technology for exchanging business documents (like POs, invoices, and shipping notices) directly between computer systems. Apparel brands use EDI to transact with retailers, often through networks like SPS Commerce, CommerceHub, DSCO, or Radial, for speed, accuracy, and automation.

What software do I need to comply with a retailer’s EDI routing guide?

You’ll need either:

• An EDI service provider (like SPS Commerce, CommerceHub, DSCO, or Radial) integrated with your ERP/WMS,
• Or a full-featured apparel ERP like AIMS360, which manages EDI, labels, packing, shipping, and chargebacks in one platform—fully automating compliance with all major retailers’ routing guides. This helps you just deal with one EDI provider, AIMS360, which helps prevent chargebacks.

How do I fulfill orders from major retailers like Nordstrom, Saks, Burlington, or Costco electronically using EDI?

• Receive EDI orders directly into your AIMS360 apparel software
• Pick, pack, and label products as per the retailer’s routing guide
• Print GS1-128 labels and packing slips from AIMS360 fashion software
• Ship using the required carrier and include correct SCAC code
• Send EDI ASN and invoice (810) on time through AIMS360
• Track and resolve chargebacks within your ERP
  AIMS360 automates this entire workflow, ensuring end-to-end EDI compliance, whether you’re working through SPS Commerce, CommerceHub, DSCO, Radial, or directly.

What is a SCAC code and why do I need it to be EDI compliant?

A SCAC code (Standard Carrier Alpha Code) uniquely identifies each freight carrier and is mandatory in EDI 856 ASNs and Bills of Lading. Retailers require SCAC codes for automated receiving and logistics. Missing or incorrect SCAC codes can cause EDI rejections and chargebacks.
AIMS360 stores and fills in SCAC codes automatically for every shipment, making compliance seamless.

Do you have consultants that will help fight chargebacks?

‍Yes, we have a network of experienced chargeback consultants who can help your apparel brand review, dispute, and recover chargebacks. Our consultants are familiar with major retailers’ compliance requirements and can support your team in building better compliance processes and successfully contesting unjustified deductions.

Conclusion

Fashion EDI and Apparel EDI compliance are mission-critical for apparel brands working with retailers. By leveraging an integrated platform like AIMS360—with EDI, labeling, compliance, and chargeback tracking built-in—brands can prevent costly violations and focus on growing their business.
Ready to eliminate EDI headaches? Contact AIMS360 for a demo and see how easy compliance can be.

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