EDI vs API: What B2B Suppliers Need to Know to Scale Operations

Why “EDI vs API” Is the Wrong Question

When you have multiple teams managing different channels and partners, understanding EDI vs API provides the foundation for growth.

We’ve framed “EDI vs API” as the ‘wrong question’ because, ultimately, you need both. 

For many suppliers/manufacturers, what starts as an omnichannel sales strategy quickly turns into disconnected systems, a tangled web of requirements, and too many integration platforms to choose from. You’re not just taking more orders; you’re taking them from everywhere. Some come through eCommerce sites or marketplaces using APIs, while others come through EDI portals and even emailed CSVs. 

This is where the EDI vs API conversation tends to surface; the more your company grows, the less ‘choice’ you have in opting between EDI vs API. It becomes the bare minimum for your sales strategy to scale. 

If you’re already navigating this complexity and want to see how leading suppliers connect EDI directly to their ERP to eliminate manual work, check out our guide to EDI ERP integration.

It’s less about choosing between them and more about selecting the correct integration and automation tools to handle them. The bottom line is you’ll need both. EDI ensures compliance with large retailers while APIs power real-time sync with your B2B e-commerce channels and fulfillment. 

Operations leaders who take their companies from growth to success know that it isn’t about “EDIs vs APIs”, it's about selecting the right tools to handle them together and knowing when to use what. 

What Is EDI? (And Why It’s Still Everywhere)

Electronic Data Interchange (EDI) has been the foundation of B2B trade for decades, dating back to the 1960s. It’s one of the very few things that have stood the test of time. 

EDI is a format. It’s a way that businesses organize and format files like purchase orders (850), invoices (810), and shipping notices. Instead of in-person sales, emails, or PDF orders, it offers a sense of structure. 

Even though EDI is a fairly antiquated way to trade, it’s not going anywhere anytime soon. It solves a problem that every supply chain shares: how to standardize communications across thousands of touchpoints. 

Big box stores and major distributors, your major partners if you want to scale, built their businesses using EDI decades ago. And they continue to use it. It is deeply embedded in their systems and workflows, and there is no pressure for them to change. 

EDI Without Integration 

If you’re just starting out with expansion to multiple retailers, you likely don’t need full-blown automation. 

Most suppliers do manage their EDI documents manually, and it works up to a point. 

Here’s what that looks like:

• You receive an EDI file from a retailer, usually through a Value-Added Network (VAN), SFTP inbox, or portal.
  
  
• You open the file.
  
  
• You print it, read it, and manually type the order into your ERP or accounting system.
  
  
• You fulfill the order, then create a response (e.g., EDI 855, EDI 810), and upload it back the same way.
  
  

It’s not fast, and it’s not elegant, but it works.

Where it becomes a massive bottleneck is when each new partner requires slightly different iterations for each document. 

EDI, while meant to standardize trade, has become a running joke where each trading partner has their own standard for an 850, 810, and so on. 

This means, for each new trading partner, you’re adding hours of work per week to your team’s plate. Ultimately, you overwhelm your team and have to consider expanding headcount, but the profits aren’t quite enough to justify team expansion. 

And because EDI standards are rigid, small formatting or compliance errors can lead to chargebacks, rejected shipments, or late fees. 

Suppliers that achieve high growth automate instead of offloading to their teams. Instead of having to manually retype a purchase order between systems, everything flows and your partners’ systems talk to yours. 

EDI isn’t broken. But without automation, it creates unnecessary operational drag.

What Is an API? (And Where It Shines)

Application Programming Interfaces (APIs) are the connective tissue of modern platforms. They allow different platforms (like your ERP), and channels (like Shopify) to talk to one another in real time. 

Imagine your ERP system is like a restaurant, and your eCommerce store is a customer. An API is the waiter who takes the customer’s order, passes it to the kitchen, and then brings the food back exactly as expected.

While EDI requires someone to actually push an order/document, APIs mean B2B orders can be placed anytime and synced across multiple touchpoints. 

They’re common in:

• eCommerce platforms (Shopify, BigCommerce)
• Cloud ERPs (NetSuite, Acumatica)
• Fulfillment and shipping tools (ShipStation, ShipWise)

Where APIs Show Up in a Supplier’s World

What Kind of Data Do APIs Exchange?

Unlike EDI, which sends entire documents, APIs send specific data points in real time, focusing less on retail/distribution partners and more on digital channels, for example:

Step 1: Order Is Placed on a Digital Channel

• A customer places an order on the Walmart Marketplace.

Step 2: Data Is Transmitted to the ERP

• The marketplace sends data via API to the seller’s ERP.

•  

Step 3: Warehouse or 3PL Fulfillment

• Once the order is ready for shipment, a shipment confirmation is sent through an API call.

Step 4: Status Update Sent Back to the Channel

• The tracking information is automatically pushed back to Walmart Marketplace.

APIs are more than a technical detail; they’re the highway behind modern commerce. Instead of waiting for EDI batches or logging into portals, APIs are constant. 

But, there is a catch. 

APIs are only as powerful as the systems they connect to and the people who build them. For most early-stage growth suppliers, developer resources are limited, and a well-architected integration strategy is a massive investment. 

Suppliers today are posing the question of whether they should embrace EDI (retail sales) or API (digital channels), not because of the confusion between both, but the need to scale with limited resources. Both come at a cost. EDI services your existing B2B workflows while adjusting DTC (direct to consumer) APIs are complex. But digitized storefronts are becoming more and more common. 

The right choice is in platforms that empower both to be automated with preconfigrured workflows that eliminate manual work and don’t require developer resources. 

EDI vs API Integration - A Balancing Act

The most successful B2B suppliers know that EDI and APIs are complementary.

EDI provides:

• Rigid structure
• Compliance with big box stores
• Industry-standard documentation

API provides:

• Speed and agility
• Integration with cloud-native systems
• Real-time visibility

The confusion about whether to use APIs vs EDI integration is rooted in the misunderstood market of software tools. For decades, legacy platforms have dominated the EDI landscape, and they still do. 

When suppliers want to trade with major retailers, they’re have they have to use a specific SaaS to trade. This simply is not true.  

Because of their long-standing relationships with companies through supply chains, their market dominance means they control the narrative, forcing suppliers to use their rigid systems that act more like middleware platforms than EDI integrators. 

Despite claims of ERP integration, they’re not truly a plug-and-play connector, with issues such as:

• Batch data flows: Files are updated on a schedule, not in real time 
• Custom mapping is required, which comes at a significant cost 
• You’ll need to work with third-party developers for each trading partner 
• Complex onboarding times (6-12 months) slow down projects 

Legacy EDI integration can work, especially for enterprise suppliers that are already highly integrated with these systems. Migration is a massive undertaking. 

But, as you start to manage API and EDI integrations, a standalone EDI platform will live in a silo, unable to fully immerse in your end-to-end workflows. 

Modern platforms provide solutions that combine API and EDI integrations so both are fully managed, automatically. 

Option 1: iPaaS Tools (Integration Platforms)

Integration platform as a service (iPaaS) tools enable technical teams to build connections and determine how orders move throughout your supply chain. Some iPaaS tools offer E

While they offer prebuilt connectors, each is still point-to-point and requires custom configuration.

A single connection moves data, but it doesn’t manage the logic of B2B order management. From customer-specific pricing to partial shipments, unit conversions, and more, B2B workflows aren’t easily offloaded with simple integrations. 

That’s where iPaaS falls short: it connects systems, but it doesn’t orchestrate the complexity behind B2B.

Option 2: Order Orchestration Platforms

Whether they label themselves “OMS alternative”, “B2B OMS”, or an “Order Hub” - there are a few options on the market that orchestrate both APIs and EDI integrations. Unlike general iPaaS tools, these platforms are purpose-built for order operations. 

B2B Order Management Systems 

A B2B Order Management System, like OrderEase, is purpose-built for the complexities of supplier workflows. These systems know EDI and API connections are only part of the way you sell.

There’s also a need for:
- B2B sales rep apps that give your field teams a place to enter real-time orders

• Customer order portals that provide wholesale and customized pricing rules 
• Email order automation for customers who still send orders via PDF and CSV

In modern operations, too many suppliers rely on tools built for DTC, just to try and piecemeal together for B2B. Manufacturers relying on e-commerce tools end up having to add on iPaaS in the long run, just to make massive enterprise systems work together. 

A B2B OMS builds EDI integrations that are industry-specific, like home improvement, lawn and garden, and flooring. The APIs connections are prebuilt, eliminating the need for custom code and empowering your teams to sell B2B e-commerce. 

E-commerce Order Management Systems 

The e-commerce-focused order orchestration platforms that have both API and EDI integrations are focused on facilitating DTC workflows and the fashion industry. If you’re a beauty brand selling through Sephora (EDI), or online through TikTok, Amazon, and Wayfair - these platforms will manage most of your workflows. 

But, if you’re in the less ‘flashy’ industries where B2B order automation needs to reflect the way your buyers purchase, an e-commerce OMS will be limited. You need a platform that can manage B2B e-commerce all while handling custom pricing, wholesale orders, and EDI orders from home improvement stores like Home Depot.

Distributed Order Management Systems 

A distributed order management system (DOM) is effectively the same as an e-commerce OMS that’s rebranded for fulfillment optimization in DTC workflows. Their main offering is order routing and shipping ,with less maturity in B2B and EDI ERP integration. 

Debunking Common API and EDI Myths

“API will replace EDI.”

This idea gets thrown around a lot as retailers modernize their tech stacks, but this shift won’t happen anytime soon. Most large retailers and distributors have invested so much time, resources, and money into EDI infrastructure with so little pressure to change, that EDI is here to stay for the foreseeable future. 

“EDI is outdated.”

EDI is old school and does require a lot of manual steps, even with legacy automation platforms. When APIs offer a completely hands-free option, it’s fair to say that EDI is dated. For EDI automation that acts like APIs (hands-free automation), look into modern EDI Integration Software. 

“API is easier.”

APIs can feel easier to test or connect, but the lack of universal standards means every API has its own rules. Once you’re dealing with 10+ systems, that “ease” turns into technical debt.

“We can choose one and stick with it.”

You might start with just API (B2B e-commerce)  or just EDI (selling to big box stores), but as soon as you expand channels or add new partners, you’ll hit integration gaps. A one-sided strategy doesn’t scale your omnichannel strategy.

FAQs - EDI and APIs

What is the difference between EDI and API?

EDI is a structured method for exchanging documents, whereas APIs are flexible, real-time technical tools for sharing data.

Can API replace EDI?

No. EDI remains essential for selling to big box stores. 

Is JSON a form of EDI?

No. JSON is a data format. EDI is a way businesses structure documents for B2B order operations.

How can we manage both without custom development?

Use a platform that supports both EDI and APIs and devouts its development to code-free implementation. Avoid duct-taped solutions or tool sprawl.

Final Thoughts on API and EDI Integration

You don’t have to become an integration expert, but you do need to understand what your partners require and what your internal systems can support.

A modern order operations platform will bridge the gap for you.

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