What is EDI Dropship?

EDI dropship is how fashion brands (the companies who make the clothes) and major retailers (like Nordstrom or Macy’s) work together to ship orders directly to customers—without paperwork, emails, or phone calls.

What is EDI?

EDI stands for Electronic Data Interchange.

Today’s retailers—especially the biggest names like Nordstrom, Macy’s, and Target—require everything to be processed electronically: orders, shipments, tracking, and invoices. Instead of emails or phone calls, both the retailer and the supplier “talk” through their computers using a special language called EDI.

When a fashion brand or supplier wants to do business with these retailers, they must send and receive every document electronically and automatically. This is called the EDI process—and it’s how fashion’s fastest, most successful brands operate at scale.

How Does EDI Dropship Work for Fashion Brands and Retailers?

Let’s say you buy a shirt on a big store’s website:

1. The Store (Retailer): Lists the shirt online but doesn’t keep it in their own warehouse.
2. The Brand or Supplier: Holds the shirt in their own warehouse or a third-party (3PL) warehouse.
3. Order Sent Instantly: When you order, the retailer’s computer instantly sends an EDI message to the brand’s system: “Ship this shirt to our customer.”
4. The Brand Ships: The brand’s warehouse gets the order, packs the shirt, and ships it directly to the customer.
5. Shipping & Tracking: The brand’s system sends an EDI message (ASN) back to the retailer with tracking details.
6. Payment: The brand sends an EDI invoice, and the retailer pays the brand automatically.

EDI Dropship In Short:

• The retailer never touches the shirt.
• The brand only ships it when it’s actually sold.
• Both sides save time, avoid mistakes, and the customer gets their order faster.

It’s like two friends texting each other every step of the way—but it’s all automatic and instant between their computers!

Why AIMS360 ERP and EDI Are Built for Fashion Brands & Apparel Companies

AIMS360 ERP for fashion brands is a comprehensive, cloud-based ERP system built specifically for apparel companies. With AIMS360, brands automate everything: inventory, order management, production, fulfillment, finances, and compliance.

AIMS360 EDI for apparel companies is the specialized EDI software and integration platform designed to meet every retailer’s EDI dropship and wholesale requirements.

Whether you need ERP dropship automation, apparel EDI integration, or user-friendly EDI software, AIMS360 is proven and trusted by the industry.

Key solutions and keywords:

• ERP for fashion brands
• EDI for apparel companies
• AIMS360 EDI integration
• ERP dropship automation
• EDI software for fashion and apparel
• AIMS360 ERP system

Fashion EDI Dropship Workflow (Step-by-Step)

1. Customer Purchase: Order placed on the retailer’s website (e.g., Nordstrom, Macy’s, Target, Farfetch, Amazon).
2. EDI Order Transmission: Retailer’s EDI system sends an EDI 850 Purchase Order to the brand or supplier.
3. Automated Order Processing: The brand’s ERP and EDI system (AIMS360) creates a sales order and updates inventory in real time.
4. Automated Fulfillment & Shipping: AIMS360 ERP dropship automation routes the order to the warehouse or 3PL. Picking, packing, labeling, and shipping are all automated; the item ships directly to the customer.
5. Automated Shipping Notification (EDI ASN): The system generates and sends an EDI 856 Advance Ship Notice (EDI ASN) to the retailer, with tracking and shipment details.
6. Automated Invoicing & Payment: The system issues an EDI 810 Invoice to the retailer; payment is processed via EDI 820 Payment/Remittance Advice.
7. Real-Time Sync: Inventory, order status, and financials are always up to date—no spreadsheets, emails, or manual steps.

Which Retailers Use EDI Dropship?

AIMS360 Apparel ERP connects with the largest list of EDI dropship retailers for fashion and apparel and has successfully handled high-volume, multi-channel transactions for brands of every size.

Supported retailers include:

Nordstrom, Macy’s, Bloomingdale’s, Saks Fifth Avenue, Saks Off 5th, Williams Sonoma, Pottery Barn, West Elm, Dillard’s, Neiman Marcus, Bergdorf Goodman, Anthropologie, Urban Outfitters, Free People, Kohl’s, Walmart, Target, Amazon, Zappos, Farfetch, full list, and many more.

Managed EDI Dropship Solution: Your EDI Fashion Consultant

With AIMS360, you get more than just EDI software—you get a dedicated EDI fashion consultant.

Our experts read and interpret every retailer’s routing guide, configure your EDI mapping, automate label and packing slip rules, and handle EDI onboarding, testing, and ongoing updates.

We help you:

• Translate complex compliance rules into simple steps.
• Onboard with new trading partners (retailers, 3PLs, and suppliers).
• Prevent EDI chargebacks and costly errors.
• Support multi-channel, multi-brand, and multi-warehouse operations.
• Train your warehouse or 3PL staff for retailer EDI compliance.
• Scale your business with confidence and speed.

AIMS360’s EDI managed services make dropship EDI integration, automation, and compliance easy—even as retail requirements evolve.

Why Apparel Brands and Manufacturers Embrace EDI Dropship: Pros and Cons

Pros

• Connect to top retailers and channels faster.
• Keep inventory until sold—lowering risk and overhead.
• Automate every document (EDI 850, 856, 810, 820, 997, more).
• Real-time updates and automated error handling.
• Fast onboarding and easy retailer expansion.
• Works with your own warehouse or 3PL (third-party logistics).
• Cloud-based EDI and ERP for anywhere access.

Cons

• Each retailer has unique EDI requirements (AIMS360 manages for you).
• Must follow strict routing and labeling rules.
• Need robust EDI system for high-volume apparel dropship.
• Handling returns and customer support can be complex.
• Retailer payment terms can delay cash flow.

EDI Dropship vs. EDI Wholesale Orders

Why AIMS360 is the Leading ERP System and EDI Software for Fashion

• Direct retailer EDI integration—middleware-free
• Built-in AIMS360 EDI integration and workflow automation
• Full automation: orders, shipping, ASN, invoicing, payments, mapping, and error handling
• Free integrations with all major 3PLs and warehouses
• Real-time compliance and visibility dashboards
• Fast onboarding (go live in as little as 30 days)
• Industry-proven cloud EDI for high volume
• ERP dropship automation made for apparel companies

FAQ: EDI Dropship, Apparel ERP, and Electronic Data Entry

What is EDI compliance and why does it matter for fashion brands?

EDI compliance means following each retailer’s specific requirements for documents, shipping, labeling, and data. It prevents chargebacks and retail partnership risks.

What is EDI mapping?

EDI mapping translates your system’s data into each retailer’s required format. AIMS360 EDI mapping makes sure every file is correct.

What is EDI onboarding?

EDI onboarding is the process of setting up and certifying your brand with a new retailer. AIMS360 EDI managed services make onboarding fast and error-free.

How does EDI automation reduce manual data entry?

EDI automation (via AIMS360 ERP and EDI software) replaces manual order entry, invoicing, and shipping updates with seamless electronic data entry and automation.

What are EDI trading partners?

Any retailer, 3PL, or supply chain partner you exchange EDI documents with (e.g., Nordstrom, Macy’s, Target).

What are common EDI transaction sets and document types?

• EDI 850 (Purchase Order)
• EDI 855 (PO Acknowledgment)
• EDI 856 (Advance Ship Notice / ASN)
• EDI 810 (Invoice)
• EDI 820 (Payment)
• EDI 997 (Functional Acknowledgment)

What is EDI 997 and why is it important?

EDI 997 is the “receipt” that confirms each EDI file was received—retailers require it to prevent data loss.

What are EDI chargebacks and how can you prevent them?

Chargebacks are retailer penalties for non-compliance (like late ASN or bad labels). AIMS360 ERP dropship automation and managed services help you avoid chargebacks.

What is EDI VAN?

A Value Added Network is a secure cloud-based system for exchanging EDI files between partners. AIMS360 supports direct EDI or VAN connections.

What is the difference between EDI and API?

EDI is the retail standard for exchanging orders and shipping data; API is a newer tech for real-time integration. AIMS360 supports both.

How does EDI testing and compliance work?

Before going live, AIMS360 tests every EDI document with your retailer to ensure accuracy and compliance.

What are EDI managed services?

Managed services means AIMS360 handles all setup, mapping, monitoring, updates, and support for your EDI system.

What is cloud EDI?

Cloud EDI lets you manage EDI online, anywhere—no servers or local installs needed.

What are retailer EDI requirements?

Retailers set strict rules for EDI files, packing, and shipping. AIMS360 reads every routing guide and programs your EDI to match.

What is electronic order processing and invoicing?

Automating orders and invoices—core to EDI—means faster, more accurate, paperless commerce.

How does EDI work with 3PL warehouses?

AIMS360 integrates with your warehouse or 3PL so orders and ASN instructions flow automatically.

What is multi-channel EDI?

Fulfilling wholesale, dropship, and marketplace orders—all through AIMS360 Apparel ERP and EDI software.

How does EDI work for direct-to-consumer (DTC) and e-commerce brands?

AIMS360 EDI lets DTC brands and online shops automate dropship, wholesale, and omnichannel fulfillment.

What is apparel EDI integration?

Apparel EDI integration connects your ERP to every retailer and trading partner in the fashion industry.

How does AIMS360 automate EDI mapping and onboarding?

AIMS360’s managed services team sets up, tests, and maintains every EDI map and retailer rule for you.

How does AIMS360 ERP dropship automation help my business?

All orders, inventory, shipping, and invoices flow electronically (EDI), cutting manual steps and keeping you compliant.

Does AIMS360 offer EDI managed services?

Yes. Our team manages onboarding, mapping, monitoring, updates, and compliance—so you can focus on growth.

What are the most common EDI documents in dropshipping?

EDI 850, 855, 856 (ASN), 810, 820, 997.

How do you become EDI compliant with top retailers?

Use AIMS360 Apparel ERP and EDI software; our experts read every routing guide, set up every rule, and certify your files.

What’s the difference between EDI dropship and wholesale?

Dropship: supplier ships direct to consumer. Wholesale: supplier ships bulk to retailer warehouse.

What is EDI chargeback prevention?

Chargeback prevention means using AIMS360 to follow all EDI and shipping requirements—no fines or lost partnerships.

How does EDI mapping work in apparel ERP?

AIMS360 keeps your EDI data correctly formatted for every retailer—updated and monitored automatically.

How does electronic data entry help my business?

EDI and ERP software from AIMS360 cuts paperwork, mistakes, and fulfillment times—helping you grow faster.

What is WMS in apparel EDI dropship?

WMS stands for Warehouse Management System. In EDI dropship, WMS software like AIMS360 manages inventory, picking, packing, and shipping to ensure EDI compliance and real-time updates between suppliers, warehouses, and retailers.

What is apparel supply chain automation?

Apparel supply chain automation uses ERP and EDI software to connect every stage of production, inventory, fulfillment, and retailer integration—automating manual tasks for faster, more accurate order flow.

Scale Your Fashion Brand with EDI Dropship and AIMS360 ERP

AIMS360 Apparel ERP and EDI deliver the complete, automated solution for EDI dropship, wholesale, and omnichannel fulfillment.

Our cloud-based platform, managed EDI services, and proven dropship automation help fashion and apparel brands of all sizes connect, comply, and grow with every major retailer.