Top 4 Benefits of Using EDI in E-Commerce Websites for Online Businesses
Modern technology is changing the way businesses around the world conduct their activities in the marketplace especially in the domain of e-commerce. Today, such organizations rely on electronic data interchange (EDI) to transfer various important documents between their trading partners. These could be in the form of sale invoices, purchase orders, payment details, shipping notices, financial data and even acknowledgements. The process eliminates the need for a paper trail as the establishments are in a position to carry out the exchange of such records electronically.
EDI in e-commerce websites – How can such a step benefits your online business?
Industry experts say recent research show the total volume of annual transactions businesses conduct using electronic data interchange (EDI) technology in the international arena exceed $ 20 billion. Such professionals predict that this trend is likely to increase in the coming years. It may not come a surprise for most entrepreneurs to know that the organizations themselves save millions of dollars in bottom-line revenues every year. This is because the technology significantly reduces with the waiting times they would normally expect with the conventional manual process. It also provides the establishments with the real-time information they need to regarding stock-levels and measures they need to take to minimize overhead costs. Companies specializing in e-commerce are also in a better position to set up benchmarks for generating more sales.
They go on to explain the important 4 advantages entrepreneurs can enjoy by implementing EDI in e-commerce websites are as follows:
- Boost organizational efficiency and minimizes errors
Professionals who use electronic data interchange (EDI) to discharge their responsibilities for the organizations they work for need to be proficient in cloud-computing. The use of common standards between trading organizations ensure proper interpretation of the information they sending to each other. Studies show the process can reduce human errors by as much as 40%.
- Cost reduction resulting from automation of process
Businesses specializing in the field of e-commerce can reduce their administrative costs relating to processing of documents by 35% by adopting EDI technology. This is because many of the tasks relating to printing, enveloping and registering such paperwork becomes unnecessary. In case of electronic invoices, such organizations can eliminate such expenditure to the extent of 90%.
- Significant reduction in response times
Electronic data interchange (EDI) technology goes a long way in improving communication between organizations conduct business activities with each other. Studies in this field show it is possible for these establishments to reduce the time it takes to validate important documents and respond to queries by 61%.
- Ensures proper tracking of relevant e-documents
Using e-documents rather than paper makes it easier for organizations to keep a track of their present status with electronic data interchange (EDI) technology. This makes it easier for such establishments to plan ahead or make necessary changes whenever the need arises.
The above 4 advantages prove that using EDI in e-commerce websites is a necessary for entrepreneurs hoping to make their mark in this segment of the market. Such a step can go a long way in enhancing the efficiency of their organization and increasing their bottom-line revenues. This is something they cannot afford to overlook.