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Electronic Data Interchange Market Cashing on B2B E-commerce CX

The E-commerce industry has experienced a cusp of transformation over the past few years. It has emerged to be an indispensable part of the retail sector. Since the advent of the internet, the scenario of buying and selling goods has changed dynamically. Right from product sourcing, and inventory management to marketing automation, the e-commerce landscape has gained momentum leading to optimized services than ever before. 


Digitalization of services, the introduction of AI, and the Internet of Things further drive profits and perks for investors in e-commerce. With the growing number of internet users globally, the field of B2B e-commerce services is projected to gain skyrocketing demand in the coming years. 

Electronic Data Interchange system can automate data exchange leading to improved supply chain and delivery of e-commerce companies. EDI is emerging as a prominent technology in B2B e-commerce in recent years. The electronic data exchange market is foreseen to gain lucrative growth in years to come. Investing in EDI is foreseen to retain strategic prominence in the upcoming decade. 

What is Electronic Data Interchange (EDI)?

Electronic data interchange technology refers to sharing business documents within enterprises through a structured digital format. EDI streamlines the data sharing to be quick and precise from device to device. 

EDI transactions are preferred for sharing details of purchases, invoices, and product shipping information among computers. These transactions cover both hardware and software components. These docs are created in a specific format to interpret the recipient’s system. The data is validated against the already defined rules to rest assured of accuracy. The benefit of using EDI in e-commerce is it helps to ensure the safety and security of data exchanges. E-commerce networks provide uniform practices for exchanging information among business partners. 

“The Insight Partners predicts; that the global electronic data interchange market will surpass the valuation of USD 58.98 billion by 2030 from USD 27.93 billion in 2022. This market is projected to grow with a CAGR of 9.8% from 2022 to 2030.”

How EDI can Enhance Customer Experience for E-commerce?

Increased e-commerce Productivity 

As EDI automates the exchange of documents businesses need not use manual processing and increase productivity. Today what matters is whether a business can afford not to invest in automation of business documents. Most often new entrepreneurs come across EDI only after mandating from big business partners. Since manual processes are prone to errors and consume more time, switching to EDI is turning out to be the obvious choice. Companies can focus more on partner’s expectations and streamline their products to position in market gaps. An E-commerce business can improve its Speed, preciseness, and cost-effectiveness in processing invoices. 

Built Business Trust and Communique 

EDI platform offers a standardized electronic exchange format. This format is easily interpreted by both parties leading to a reduction of misunderstandings and miscommunication among parties. Keeping clients informed about their shipments generates a sense of authenticity and is likely to reward in terms of brand loyalty. 

Standardised formats for Precision

Companies Switching to EDI systems reported the elimination of faults improved precision in online transactions and improved exchange. Standardized formats of notices are shared to receive purchase, orders from suppliers and notify clients about the product shipment. EDI allows transactions to be processed quickly and reduces paper-based work, which is another win toward sustainable e-commerce. 

Real-time Inventory Management

E-commerce companies need to always show their customers that they putting customers’ expectations first. EDI is capable of automating inventories of e-commerce companies, assisting in real-time updates on inventory levels, and enabling informed decision-making. Real-time inventories optimize product movement and schedule shipments to avoid any stock-outs. Faster and precise delivery of orders is aimed at e-commerce companies, and EDI never fails to deliver its promise to these giants. 

Are there any challenges? How to deal with them?

As per The Insight Partners, acceptance of EDI solutions and growing digital transactions coupled with favorable government support are drivers of growth for the electronic data exchange market. However, an EDI setup requires high cost and in-house maintenance is a prerequisite creating hindrances for small to mid-scale companies. With growing volumes of data, quality maintenance becomes costly. 

“High Cost of hardware and maintenance, Security concerns and Scalability are challenges hindering adoption of EDI in B2B e-commerce”

There are security concerns associated with information sharing among partners. These can lead to a lack of trust and increase security breach risks. Companies may have to face regulatory hurdles in such incidences.

B2B e-commerce Companies can address challenges in EDI with fully functional iPaaS (integration platform as a service). Adding new business partners in iPaaS is flexible and can lead to meeting gaps in API words and EDI. There is freedom it offers to go free from hardware and licenses and manage additional integration resulting in cost savings. These systems can address quality and security issues in data and systems. 

What role will EDIs play in e-commerce in the future?

With Emerging technologies, the future of e-commerce is foreseen to experience the dominance of EDIs. Artificial Intelligence, the Internet of Things, and Cloud Computing are anticipated to enhance the speed of e-commerce operations. Investing in blockchain technology is a promising strategy to reap the benefits of its security, transparency, and traceability of EDI transactions. This technology seems effective in addressing disputes and fraud challenges in increasing the e-commerce experience. 

Artificial Intelligence and Machin Learning have the potential to analyze large amounts of data regarding EDI transactions. Spotting important patterns and forecast trends can improve supply chain efficiency. Companies can use these insights to further revise their offerings and target better CX. 

Smart e-commerce moves can’t miss real-time data inventories. Advanced cloud-based EDI solutions have the advantage of remote operations and no installation is required on the big IT scale. These solutions are affordable for small to mid-scale e-commerce companies. 

The growing e-commerce arsenal has been phenomenal in terms of unlocking ROIs for investors in the last decade. Growing customers from young adults and Gen Z are foreseen to prefer online commerce. As a result, it’s expected that B2C e-commerce will also experience rapid growth in the coming decade. To position themselves in market gaps, companies need to speed up their operations and automate their procurement as much as possible. EDI’s systems certainly seem promising options for new entrepreneurs willing to excel in the e-commerce industry. 

Learn more about EDI trends, challenges, and Opportunities check out Electronic data integration market research.

Authors Bio

Snehal Gade 

(Senior Content Writer, The Insight Partners)

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