Connection Protocols: SFTP & AS2

Understand the two main ways EDI documents are transmitted between you and your retailers.

How Do EDI Documents Get from A to B?

EDI documents need a way to travel between your system and your retailer's system. This is where connection protocols come in. Think of the EDI document as a letter — the protocol is the delivery method. RetailReady supports the two most common protocols: SFTP and AS2.

SFTP: The Shared Secure Folder

SFTP (Secure File Transfer Protocol) is the simpler of the two options. Imagine a secure shared folder on the internet:

  • Your retailer sets up a folder on their server (or you set one up on yours).
  • When they send you a purchase order, they drop the file into an Inbound folder.
  • When you send them a document (like an invoice), you place it in an Outbound folder.
  • Both sides check these folders periodically to pick up new files.

To connect via SFTP, you'll need:

  • Host address — The server location (e.g., sftp.retailer.com)
  • Port — Usually 22 (the default for SFTP)
  • Username and password (or an SSH key)
  • Folder paths — Where to drop off and pick up files

SFTP is popular with mid-size retailers because it's straightforward to set up and doesn't require special software.

AS2: The Direct Encrypted Pipeline

AS2 (Applicability Statement 2) is a more sophisticated protocol. Instead of dropping files in a folder, AS2 creates a direct, encrypted connection between two systems. Documents are pushed directly from one system to the other in real time.

Key features of AS2:

  • Encryption — Documents are encrypted in transit using digital certificates, so only the intended recipient can read them.
  • MDN Receipts — After receiving a document, the receiving system sends back a "receipt" (called an MDN — Message Disposition Notification) confirming it arrived intact. This gives you proof of delivery.
  • Real-Time Delivery — Documents are pushed immediately rather than waiting for someone to check a folder.

To connect via AS2, you'll need:

  • AS2 ID — A unique identifier for each party (yours and the retailer's)
  • AS2 URL — The endpoint where documents are sent
  • Digital certificates — Used for encryption and signing

Good to know: Major retailers like Walmart, Target, and Home Depot require AS2. If your retailer asks for it, don't worry — RetailReady handles the certificate management and encryption for you.

Which Protocol Should You Use?

Here's the simple answer: your retailer decides. They will tell you which protocol they support (and sometimes they only support one). You don't need to make this choice on your own.

Feature SFTP AS2
Complexity Simple More complex
Delivery Polled (periodic check) Real-time push
Delivery receipt No built-in receipt Yes (MDN)
Common with Mid-size retailers Large retailers

RetailReady Handles the Hard Parts

Regardless of which protocol your retailer requires, RetailReady manages the connection for you. You enter the credentials, and RetailReady takes care of polling SFTP folders, managing AS2 certificates, sending and receiving MDN receipts, and retrying failed transmissions. You can focus on your products and orders — not on managing file transfers.

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