EDI in E Commerce: What It Is and How It Helps
Published on December 11, 2025
• 9 min read
EDI in e commerce, Electronic Data Interchange (EDI) is a system that enables the digital exchange of business data and documents between organizations. It allows information to move directly from one company’s computer system to another without manual intervention. EDI standards define how data is structured, including the order and placement of each element in a document. Businesses use EDI to share various documents such as purchase orders, invoices, shipment notices, loan applications, and requests for quotes.
About ICES (Indian Customs EDI System)
The Indian Customs EDI System (ICES) exchanges customs data electronically. It uses Electronic Data Interchange (EDI) to process clearance documents online.
Trade, transport, and regulatory agencies share data through this system. These trading partners submit and receive customs information digitally.
ICES operates at over 252 customs locations across India. It handles nearly 98% of India’s international trade.
The system has two main parts:
- First, it automates customs offices for a paperless clearance process.
- Second, it connects traders and agencies through the ICEGATE portal.
ICES receives and processes all incoming electronic messages. It also generates outgoing messages at each clearance stage.
ICEGATE links customs with external agencies and banks. It also shares trade data with DGFT, DGCI&S, and RBI.
The Single Window Interface for Facilitating Trade (SWIFT) simplifies procedures. It lets traders file documents and get approvals online. This system reduces clearance time and business costs.
The E-Sanchit system supports paperless document submission. It cuts physical interaction and speeds up customs processing.
Remote EDI System (RES)
The Remote EDI System (RES) is a Windows-based application. It helps Custom House Agents, importers, and exporters prepare documents.
Users can create Bills of Entry, Shipping Bills, and Reports. These are submitted to customs remotely via ICEGATE.
The RES includes modules for import, export, and border ports. It also covers RES/Consol (Air) for air cargo declarations.
EDI technology in e-commerce enables faster digital documentation. Stakeholders can file papers online and receive on-desk clearance. This system has greatly improved processing speed and accuracy.
UN/EDIFACT (United Nations Rules for Electronic Data Interchange for Administration, Commerce and Transport)
UN/EDIFACT stands for the United Nations rules for Electronic Data Interchange for Administration, Commerce and Transport. It defines globally accepted standards, directories, and guidelines for the electronic exchange of structured data between independent systems.
The framework is approved and published by the United Nations Economic Commission for Europe (UNECE) under the United Nations Trade Data Interchange Directory (UNTDID). It is maintained through standardized procedures to ensure consistency and uniformity across global trade systems.
Trade Facilitation and Early Development
Trade facilitation involves the flow of information needed for moving goods internationally. Earlier, this process relied heavily on paper documents.
Customs forms, invoices, and shipping documents were manually handled and exchanged. As a result, early efforts focused on simplifying and standardizing these paper documents.
With technological progress, new ways to process and transmit information have become possible.
The goal expanded beyond simplifying documents to creating standardized digital formats.
In 1972, the UN/ECE Working Party on Trade Facilitation was established to improve data exchange in international trade.
Standardization of Trade Documentation
The United Nations Layout Key for Trade Documents played a major role in this transformation. It created uniformity in trade documents worldwide. This standardization reduced paper-handling costs and simplified document processing.
The layout key defined consistent sizes, formats, and data fields for trade documents. It grouped key information such as parties, transport, references, and goods details.
This organization made analyzing and digitizing data much easier. It also laid the groundwork for future EDI technology in e-commerce and logistics.
Automation and Data Processing
The rise of automated data processing systems changed how trade data was handled. Businesses could now process information electronically and share it instantly.
Instead of printing and mailing documents, data could be exchanged directly between systems. This improvement saved time, reduced manual errors, and increased accuracy.
Automatic data exchange also required a new level of discipline. Unlike paper-based communication, electronic transmission requires strict data formats and codes. UN/EDIFACT established those uniform rules for presenting, transmitting, and interpreting trade data.
The Need for Common Standards
Even with advanced technology, data exchange could fail without common standards. Different systems use different formats, which can cause errors or miscommunication.
To solve this, UN/EDIFACT defined standard message structures and data elements. They made it easier for companies, customs, and logistics providers to share accurate data.
Also read – How to Check Your Shipping Bill Status Online in India?
GS1 EDI Standards
GS1 EDI (Electronic Data Interchange) provides global standards for electronic business messaging. It enables automation of common supply chain transactions between trading partners.
GS1 EDI covers master data alignment, orders, deliveries, and financial settlements. It also supports transport, warehouse, and inventory management processes.
The main users of GS1 EDI are retailers, manufacturers, material suppliers, and logistics providers. It helps streamline communication across the entire supply chain efficiently.
As demand for digitization increases, companies often update their EDI systems. New legal, regulatory, or business requirements require frequent adjustments in EDI implementations.
To reduce ambiguities and improve consistency, GS1 developed a semantic methodology. This approach standardizes business terms and transactional message content. It also supports emerging technologies, new syntaxes, and evolving market requirements.
GS1 EDI Standards Sets
GS1 currently maintains four complementary EDI standards:
- GS1 EDI Business Terms (Semantics / Dictionary) – Defines clear business terminology.
- GS1 EANCOM® – A widely used standard for EDI messaging.
- GS1 XML – Optimized for internet-based data exchange.
- GS1 UN/CEFACT XML – Supports structured global trade messages.
These standards are implemented in parallel depending on user needs. XML-based standards are preferred for web and cloud-based transactions. The GS1 Global Office conducts annual surveys to monitor EDI adoption. The survey measures the use of standards across GS1 Member Organizations worldwide.
ANX12 for North America
ANX12, also known as X12, is the Electronic Data Interchange (EDI) standard used across North America. It defines how businesses exchange data electronically, supporting automation and accuracy in trade and communication.
Chartered by the American National Standards Institute (ANSI), X12 has been active for over 40 years. It develops and maintains EDI standards and XML schemas that power global business operations.
X12 standards are used across many industries, including healthcare, insurance, transportation, finance, government, and supply chain. Its members include both technology professionals and business process experts from these sectors.
Members meet regularly to update and maintain EDI standards. These standards help businesses exchange information efficiently, reducing manual errors and paperwork.
X12 enables electronic exchange of common business documents. These include orders, shipping details, invoices, payments, and cash applications. It supports over 320 transaction standards used in day-to-day business operations.
The X12 organization is managed by a Board of Directors and a Steering Committee. The Board oversees strategic and business affairs. The Steering Committee manages the creation and publication of standards and related work.
X12 Standards
X12 provides a flexible and evolving framework for EDI communication. It is built to handle millions of transactions daily with consistency and reliability.
- Consensus-Based
Every X12 standard is developed through stakeholder consensus. This ensures it meets industry needs and remains transparent.
- Interoperable
X12 standards work alongside other international standards, ensuring smooth data exchange across platforms.
- Syntax-Neutral
They are compatible with multiple data formats and syntaxes, making integration simple.
- Ready for the Future
X12 continues to evolve with business and technology changes. Its adaptive structure supports new tools, platforms, and global business requirements.
X12 remains a core standard for EDI in e-commerce and other industries across North America.
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Also check – What Is e-SANCHIT: Simplifying Digital Document Submission in India
FAQs – EDI in E Commerce
What is EDI in e-commerce?
EDI in e-commerce stands for Electronic Data Interchange. It enables businesses to exchange documents like orders, invoices, and shipping details electronically between systems, reducing manual work and errors.
What are the main types of EDI standards used globally?
The major EDI standards include UN/EDIFACT for international trade, GS1 EDI for supply chain communication, and ANX12 (X12) for North America. Each defines standard message formats for smooth, automated data exchange.
What are the advantages of EDI in e-commerce?
EDI technology in e-commerce speeds up transactions, reduces paperwork, improves accuracy, and enhances communication between trading partners. It also lowers operational costs by automating routine processes.
How does EDI help in customs and trade documentation?
Systems like ICES and RES use EDI to process customs documents online. This reduces clearance time, minimizes physical paperwork, and ensures faster movement of goods across borders.
How does WareIQ support e-commerce fulfillment?
WareIQ offers a full-stack, tech-enabled fulfillment solution. It integrates with multiple e-commerce channels, automates inventory management, supports faster delivery, and helps brands manage orders from a single platform.
