How APIs Are used Instead of EDI Nowadays

Today, many businesses — especially e-commerce, logistics, retail, and fintech — use APIs to support or replace EDI where speed and flexibility are needed.

Below is a detailed overview of how APIs are transforming B2B integration.

1. Real-Time Data Exchange (vs. EDI Batch Processing)

Traditional EDI sends files in batches:

• Orders every 15 mins or every hour

• Ship notices once the warehouse completes picking

• Inventory updates daily or hourly

APIs allow real-time data exchange:

• Inventory can be updated instantly

• Order confirmation is instant

• Tracking updates are immediate

• Payment confirmations happen instantly

Example:
Amazon, Shopify, eBay APIs instantly send order details to sellers (no EDI 850 needed).

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2. APIs Are Used for Modern Platforms (EDI Can’t Integrate Easily)

Platforms like:

• Shopify

• WooCommerce

• Amazon Seller Central

• BigCommerce

• Stripe

• Razorpay

• UPS/FedEx

• Google Cloud / AWS

These platforms do not support EDI directly.

They use REST APIs or Webhooks, not EDI.

Example
A seller receives an order from Shopify via API, not via EDI 850.

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3. APIs Enable Event-Based Systems (Webhooks)

APIs support events, something EDI cannot do.

Example events:

• Order created

• Item shipped

• Label generated

• Payment completed

Webhook → API Callback
The system instantly notifies another system when something happens.

EDI has no capability for event-driven communication.

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4. APIs Reduce Transaction Cost & Complexity

EDI requires:

• Standard mapping

• Middleware

• AS2/SFTP connections

• Message translators

• EDI analysts

APIs only need:

• URL + Token

• JSON/XML data

• Simple authentication (OAuth2/Bearer Token)

Example
Instead of sending an EDI 856 ASN via AS2, the warehouse updates the retailer via a POST /shipments API with JSON.

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5. APIs Use Modern Security (OAuth2, JWT, TLS 1.3)

EDI uses older security protocols:

• AS2 certificates

• SFTP keys

• MDN acknowledgments

APIs use:

• OAuth2

• JWT tokens

• API gateways

• Rate-limiting

• Zero-trust policies

Modern and faster.

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6. APIs Integrate Better With Mobile, Cloud & SaaS

EDI translator cannot easily run inside:

• Mobile apps

• Serverless platforms

• Microservices

• Cloud-native systems

APIs are built for:

• AWS Lambda

• Azure Logic Apps

• Google Firebase

• Mobile apps (Android/iOS)

• Cloud-based ERPs

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7. APIs Are Used for Shipment Tracking Instead of EDI 214

Earlier:
EDI 214 Shipment Status was used by trucking carriers.

Now:
Logistics companies like UPS, DHL, FedEx, Delhivery, BlueDart provide tracking APIs.

Warehouse / ERP systems call:

GET /tracking/{tracking_number}

Instead of waiting for EDI 214.

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8. APIs Are Used for Invoicing Instead of EDI 810

Fintech platforms use API-based invoicing:

• Zoho

• QuickBooks

• Stripe

• Razorpay

• SAP Cloud

• Tally API

EDI 810 becomes optional.

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9. E-Commerce Uses APIs Instead of EDI

For marketplaces:

• Amazon

• Flipkart

• Etsy

• Myntra

• Ajio

• Meesho

APIs drive the entire order flow, not EDI.

EDI is used mostly in:

• Retail (Walmart, Target, Kroger)

• Manufacturing (Automotive, Aerospace)

• Healthcare (Hospitals, Pharma)

• Logistics (Carriers)

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10. Hybrid Model: API + EDI Together

Most companies use a hybrid model:

Scenario	Technology
Large retailers (Walmart, Costco):	EDI
E-commerce platforms:	APIs
Logistics status updates:	APIs
Invoices / ASN for enterprise customers:	EDI
Small suppliers:	Web-EDI / REST API
Internal system sync:	APIs

Many EDI tools now support API + EDI together:

• Cleo Integration Cloud

• MuleSoft

• Boomi

• SAP CPI

• OpenText