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EDI Compliance Guide: Master Walmart AS2 & Amazon Mandates
Struggling with retailer EDI compliance? Our guide details Walmart AS2 requirements & Amazon EDI mandates. Learn to manage AS2, acknowledgements, & testing to avoid penalties and secure your vendor status.
Thanura Jayatissa
Published: 08 Sep 2025
How to Stay EDI Compliant with Large Retailers Like Walmart and Amazon
Learn how to stay EDI compliant with retail giants like Walmart and Amazon, covering AS2, acknowledgments, testing, and monitoring, so you can avoid penalties, ensure smooth transactions, and keep your vendor status secure.
For businesses working with retail giants like Walmart and Amazon, meeting their Electronic Data Interchange (EDI) requirements is mandatory for keeping your partnerships alive. Both companies rely heavily on EDI to manage supply chains efficiently, and any compliance gaps can lead to penalties, delayed payments, or even being delisted as a vendor.
If you’re a supplier, you’ve probably already felt the pressure of retailer EDI compliance. Unlike smaller partners, Walmart and Amazon have very strict and technical standards that must be followed. Let’s explore what compliance really means, the specific Walmart AS2 requirements and Amazon EDI mandates, and how you can stay ahead of the curve.
What is EDI Compliance?
EDI compliance means following the rules and formats that trading partners set for sending and receiving electronic documents. These rules make sure that orders, invoices, shipping notices, and other business files are shared in a way both sides can easily understand. Staying compliant helps to avoid mistakes, cuts down on manual work, and keeps information flowing smoothly between companies.
Why Retailer EDI Compliance Matters
When working with large retailers, you’re part of a massive, automated ecosystem. Orders, invoices, shipping notices, and acknowledgments all move through EDI systems. If your messages don’t follow the rules, they don’t get processed correctly, and that can have costly consequences.
For Walmart and Amazon, compliance isn’t just about convenience; it’s about scale. They handle millions of transactions daily, and even a small error from your side can disrupt operations. That’s why non-compliance often results in chargebacks, delays in payment, or strained vendor relationships.
Walmart Compliance Requirements
If you’re planning to trade with Walmart, one thing is clear: Walmart takes EDI compliance very seriously. For years, Walmart has pushed its suppliers to adopt AS2 (Applicability Statement 2) as the standard way to exchange EDI documents. But AS2 is just one part of the bigger compliance picture.
Here’s what you need to meet Walmart’s requirements,
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Secure AS2 Communication
Walmart requires all EDI traffic, purchase orders, invoices, advance ship notices to flow through AS2. Unlike older systems, AS2 sends data directly over the internet but keeps it protected with encryption and digital signatures. This is the backbone of how Walmart ensures its supply chain data stays accurate and secure.
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Certificate Management
AS2 relies on digital certificates to authenticate trading partners and secure data exchange. If a certificate expires, the AS2 connection fails and transactions cannot be processed. One of the most common issues suppliers face is missing certificate updates. Walmart requires SHA-256 signed certificates, often valid for several years, but it’s still critical to track expiration dates and renew them well in advance to avoid disruptions.
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Message Acknowledgments (MDNs)
Every AS2 message you send to Walmart must generate a Message Disposition Notification (MDN) in return. This MDN is a digital receipt proving your document was delivered successfully and intact. If MDNs aren’t handled properly, Walmart may treat the document as undelivered, which can lead to delays or chargebacks.
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Testing and Certification
Before you go live, Walmart requires you to complete a testing process. This step ensures your AS2 setup works correctly and that your EDI documents match Walmart’s exact specifications. Once certified, you’re cleared to trade, but you’ll need to stay alert. Walmart periodically updates requirements, and you’re expected to adapt quickly.
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Ongoing Monitoring
AS2 requires continuous oversight. Certificates can expire, MDNs may fail, and formatting errors can occur. Walmart expects suppliers to detect and resolve these issues promptly before they impact business operations. Implementing real-time monitoring and automated alerts is essential to prevent shipment delays and avoid costly penalties.
Amazon EDI Mandates
Amazon takes a slightly different approach but is equally strict about compliance. Their requirements focus heavily on timeliness and accuracy:
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On-Time Acknowledgments – Every EDI transaction triggers a 997 acknowledgment from Amazon to confirm receipt. Failure in acknowledgment handling may indicate delivery issues.
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Advance Ship Notices (ASNs) – For every shipment, you must send an ASN before the order arrives at the warehouse. Any missing or inaccurate details like tracking numbers can result in penalties or chargebacks.
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Invoice Standards – Amazon’s invoicing rules are very specific. Even minor errors, such as mismatched purchase order numbers or incorrect quantities. can result in rejections.
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EDI Testing and Certification – Just like Walmart, Amazon requires you to complete testing and certification before you’re allowed to trade EDI documents with them.
Common Compliance Challenges
While Walmart and Amazon have slightly different requirements, suppliers often struggle with similar issues:
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Technical Setup – Configuring AS2 connections or VANs can be complex if you don’t have the right expertise.
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Ongoing Monitoring – Even after setup, you must continuously monitor message flows to catch errors before they become compliance violations.
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Certificate Management – Expired or invalid certificates frequently cause communication failures with Walmart AS2 requirements.
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Scaling Up – As your business grows, handling larger EDI volumes manually can increase errors and risk of non-compliance.
How to Stay Compliant
So, how do you keep up with both Walmart AS2 requirements and Amazon EDI mandates? Here are some practical steps:
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Automate as Much as Possible – Manual processes almost always lead to mistakes. Use a managed EDI solution or integration platform that can handle AS2 connections, acknowledgments, and document translation automatically.
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Monitor Transactions in Real Time – Don’t wait until Walmart or Amazon 2.tells you something failed. Invest in monitoring tools that alert you immediately if a transaction is rejected or delayed.
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Stay on Top of Certificates – Keep a calendar or automated alerts for certificate renewals.
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Regular Testing – Even after initial certification, continue to test whenever you make changes to your systems. This avoids disruptions during peak seasons.
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Work With Experts – If you don’t have in-house EDI expertise, partnering with an EDI provider who specializes in retailer compliance can make the process smoother and more reliable.
Conclusion
For suppliers working with Walmart and Amazon, EDI compliance isn’t optional. It’s the cost of admission into some of the largest and most profitable retail ecosystems in the world.
By understanding and meeting retailer EDI compliance standards, including the strict Walmart AS2 requirements and time-sensitive Amazon EDI mandates, you can avoid penalties, strengthen your relationships with these giants, and keep your supply chain running smoothly.
With our products, you can stay EDI compliant with ease. EDI Generator handles the processing of your EDI files, while MFT Gateway securely delivers them over AS2. Together, they create an automated solution that meets the exacting standards of Walmart and Amazon.
Many customers already use our platform to exchange files reliably with these retailers, and you can sign up for our 30-day free trial to explore the solution. Plus, our team is always available to assist with the initial setup and provide ongoing support for any issues that may arise.
Thanura is a Senior Software Engineer at Aayu Technologies with nearly 1.5 years of experience mastering various products at Aayu. During this time, he has gained extensive knowledge of Aayu's diverse product line, particularly in B2B communications and cloud technologies. Away from the screen, he enjoys the thrill of watching cricket matches and cherishes moments spent with friends.
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