SPS Commerce operates a cloud-based supply chain network that connects retailers, suppliers, brands, distributors, and logistics providers to automate the exchange of business documents like purchase orders, invoices, and shipping notices — a process known as electronic data interchange (EDI). Rather than building and maintaining separate integrations for every retail partner, a supplier connects to SPS once and can transact with thousands of retailers across the network. The core product, Fulfillment, automates order-to-invoice workflows between trading partners. SPS also offers Analytics, which helps customers analyze point-of-sale data to optimize inventory and forecasting, and Revenue Recovery, which helps suppliers reclaim money from erroneous deductions charged by retailers like Amazon, Walmart, and Target. Revenue is roughly 96% recurring, priced primarily on a fixed-fee-per-trading-partner-connection basis rather than transaction volume, limiting exposure to swings in retail sales. Growth is driven by two levers: adding new customers (primarily through "retailer enablement campaigns," where SPS partners with a retailer to onboard its entire vendor base) and expanding ARPU by upselling more connections or cross-selling Analytics and Revenue Recovery. SPS sells through a direct sales force and channel partners including ERP providers like SAP, Oracle, and NetSuite. Internationally, Europe is the primary expansion target. Recent headwinds include macro-driven supplier spending caution, underperformance in the Amazon-facing portion of Revenue Recovery, and delays in retailer enablement campaigns.