EDI (electronic data interchange) can be defined as being the structured data transmission that happens between organizations through the use of electronic means. Nowadays, EDI is simply mandatory when working with the larger retailers. However, this did take a long time to happen. With such retailers, dropshipping is often an offered service so EDI dropshipping integration is definitely something that has to be seen as mandatory. But why is that?
Dropshipping is practically a modern retail fulfillment method through which the store selling a product does not actually have it in stock. As something is sold, the store purchases that exact same item from the third party supplier, which in turn ships it to the customer. Through the use of EDI, order documentation is quickly sent between the third-party vendor and the retailer. This is done in an efficient and quick way, thus creating an order lifecycle that is seamless.
There are various documents that are exchanged between the involved parties through the EDI system. This can vary from one system to the next. However, what does not vary is that these are exchanges that happen through electronic channels.
Contrary to popular belief, EDI existed ever since the sixties. It was heavily introduced in dropshipping around the eighties. Nowadays, vendors need really easy and fast file validations. Since the system is automatic, EDI stands out as the norm that is used.
There are many reasons why EDI dropshipping integration is beneficial for all the businesses involved. Besides the fact that file transfer is instant, it is also a really cheap option that is available for the smaller companies looking to streamline operations. Inefficient manual processes are no longer needed in order to complete orders.
We should also add that EDI communication is nowadays considered to be the industry norm. This is why you can be sure that using such a system is compatible with the dropshipping vendor, no matter in what corner of the world it operates. EDI is capable of handling every single business scenario, no matter how complex it is and how many documents have to be exchanged.
EDI gives access to a way in which businesses communicate in real-time. They avoid having to use paper in order to manage inventories and orders. You can expect the client to just buy something from the site you own. Then, the system automatically sends all the files that are needed to make sure the shipping actually happens. The dropshipping provider receives the order and can ship it as fast as possible. Without the use of EDI, an order would be shipped days after purchase. With EDI, this happens in under 24 hours.
As you can easily notice, it is not at all difficult to understand why EDI dropshipping integration is mandatory in the industry right now. It simply makes the process a lot better and faster than it could be without it. While new technologies are still being developed, EDI remains the norm and has to be considered by absolutely all businesses interested in this operating system.