Stands for "Electronic Data Interchange." EDI is a standardized method for transferring data between different computer systems or computer networks. It is commonly used for e-commerce purposes, such as sending orders to warehouses, tracking shipments, and creating invoices.
Because may online retailers sell products that they do not physically stock, it is important to have an easy way to transfer order information to the locations where the goods are stored. EDI makes this possible. Some common EDI formats include X12 (U.S.), TRADACOMS (U.K.), and EDIFACT (International).