Getting a product into a big retailer is a big win. Shipping to that retailer is a different job from shipping to online customers. Retailers have strict rules for labels, cartons, pallets and delivery, and they charge suppliers who get it wrong. This guide explains how to ship to retailers in Canada: what retail compliance means, the documents and labels you will need and how to avoid chargebacks.
What is retail compliance?
Retail compliance means preparing and delivering orders exactly the way a retailer asks. Each retailer sets out its rules in a vendor manual or routing guide. The rules usually cover:
- Carton and case-pack quantities.
- Carton labels and product barcodes.
- Pallet size, height, weight and wrapping.
- Paperwork such as packing slips and bills of lading.
- Which carrier to use, or how to request a pickup.
- Delivery appointments and on-time windows.
- Electronic messages such as purchase orders and advance ship notices.
Key terms you will see
| Term | What it means |
|---|---|
| Routing guide | The retailer’s rule book for how orders must be packed, labelled and delivered |
| Purchase order (PO) | The retailer’s order, often sent by EDI (the 850 message) |
| ASN | Advance ship notice: an electronic message telling the retailer what is in each carton and pallet before it arrives (the EDI 856 message) |
| GS1-128 / SSCC label | The standard carton or pallet label with a unique serial shipping container code that links to the ASN |
| Case pack | How many units go in each carton, as set by the retailer |
| Bill of lading (BOL) | The freight document that goes with an LTL or truckload shipment |
| Chargeback | A fee the retailer deducts from your invoice when a rule is broken |
| OTIF | On time, in full: the measure many retailers use to score suppliers |
What causes chargebacks?
Chargebacks are fines retailers deduct from your payment. Some are a flat fee per shipment, others a percentage of the order. The most common causes are:
- Missing, late or wrong ASNs that do not match what was shipped.
- Wrong, missing or unreadable carton labels.
- Wrong case-pack quantities or mixed SKUs in a carton.
- Pallets that are too tall, too heavy, overhanging or poorly wrapped.
- Short shipments or wrong items.
- Missed delivery appointments, or shipments that arrive early or late.
- Using the wrong carrier or skipping the retailer’s routing request.
One chargeback may look small, but repeated issues add up quickly and can put your account at risk.
How to prepare a compliant retail order
- Read the routing guide before the first order and keep the latest version on file.
- Check the PO for quantities, ship dates, the delivery location and any special instructions.
- Pick and pack to spec, using the right case packs and carton sizes.
- Label every carton and pallet with the required labels in the right place.
- Build pallets to the rules: size, height, weight, corner boards and stretch wrap.
- Send the ASN on time, matching exactly what is in the shipment.
- Book the carrier or appointment as the retailer requires and ship with the right paperwork.
- Keep proof: photos of pallets, signed BOLs and tracking, so you can dispute unfair chargebacks.
Selling both online and to retailers
Many brands sell direct to customers online and wholesale to stores at the same time. The two order types need different handling: single parcels for e-commerce, and cartons and pallets to spec for retail. Running both from the same inventory avoids splitting stock between two warehouses. For more on the e-commerce side, see our guide to Shopify fulfillment in Canada.
Shipping to US retailers
US retailers follow similar rules, with customs paperwork added. Make sure your commercial invoice, product classification and labelling are right before the first shipment. See shipping from Canada to the US for the basics.
B2B distribution from Mississauga
Newsom 3PL prepares and ships B2B and retail orders from our warehouse at 3405 American Dr. in Mississauga. Our team follows each retailer’s routing guide for labelling, case packing and pallet builds, and ships by van, truck, LTL or carrier partners across the GTA, Canada and the United States. Wholesale and e-commerce orders can ship from the same inventory in our warehouse. See how our quotes work or request a quote.
Frequently asked questions
What is a retailer routing guide?
A routing guide is a retailer’s set of rules for its suppliers. It explains how to pack, label and ship orders, which carrier to use and how to book deliveries.
What is an ASN in shipping?
An advance ship notice (ASN) is an electronic message sent to the retailer before the shipment arrives. It lists what is in each carton and pallet so the retailer can receive the goods quickly.
How can I avoid retail chargebacks?
Follow the routing guide exactly, label every carton and pallet correctly, send accurate ASNs on time and keep proof of what you shipped. Working with a 3PL that does retail prep every day also helps.
Can a 3PL ship both wholesale and online orders?
Yes. Many 3PLs, including Newsom 3PL, ship retail orders to stores and distribution centres and parcels to online customers from the same inventory.