Drop-ship automation
Drop-ship programs that run themselves
Drop-ship lets retailers sell more without holding inventory, but only if orders, inventory and shipment confirmations move quickly and accurately. ECOM automates the data exchange on both sides of the program, for retailers running vendor networks and for vendors fulfilling them.
At a glance
- Inventory feeds
- Consumer order routing
- Ship confirmations and tracking
- Invoicing and cancellations
- Vendor onboarding
What is drop-ship EDI?
Drop-ship EDI is the electronic exchange used when a retailer sells a product and the vendor ships it directly to the end consumer. It typically includes inventory feeds so the retailer can show availability, consumer orders sent to the vendor, shipment confirmations with tracking numbers, invoices and, sometimes, order status and cancellation messages.
Outcomes
What you can expect
Accurate availability
Frequent inventory updates help prevent selling products that are not in stock.
Faster customer delivery
Orders reach vendors quickly and tracking flows back to customers.
Fewer manual exceptions
Automated confirmations and invoices reduce disputes between retailer and vendor.
Approach
How ECOM delivers it
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Inventory feeds
Exchange 846 inventory documents or API feeds on an agreed schedule.
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Consumer order routing
Send orders to the right vendor and confirm receipt.
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Ship confirmations and tracking
Return 856 ship notices with carrier and tracking information.
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Invoicing and cancellations
Handle 810 invoices and order cancellations or status updates.
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Vendor onboarding
Bring vendors onto the program through EDI, WebEDI or APIs.
Documents and standards
Common transactions
Common X12 documents in drop-ship programs. Each retailer's guide defines the exact set.
| Code | Document | What it does |
|---|---|---|
| 846 | Inventory Inquiry/Advice | Shares vendor inventory available to sell. |
| 850 | Purchase Order | Carries the consumer order and ship-to details. |
| 870 | Order Status Report | Reports order status or backorders. |
| 856 | Advance Ship Notice | Confirms shipment with tracking. |
| 810 | Invoice | Bills the retailer for the shipped order. |
Scenarios
Common scenarios
Retailers expanding assortment
Add vendor-fulfilled products to e-commerce sites without stocking them.
Vendors serving many retailers
Fulfill drop-ship orders for multiple retailers from one integrated process.
Frequently asked questions
How often should inventory be updated for drop-ship?
Frequency is set by the retailer's program requirements. More frequent updates generally reduce the risk of overselling.
Can vendors without EDI join a drop-ship program?
Yes. Vendors can use WebEDI or APIs, and ECOM can help retailers onboard them.
Do retailers and vendors use the same documents?
Retailers define the documents and versions their program requires, so vendors often maintain retailer-specific maps for each program.
Talk to an integration expert
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