---
title: What is EDI (Electronic Data Interchange)?
description: EDI (Electronic Data Interchange) is how businesses communicate with each other to complete B2B (Business-to-Business) transactions.
---

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1. [Knowledge Base](https://hub.acctivate.com/articles?hsLang=en)
2. [EDI](https://hub.acctivate.com/articles/edi?hsLang=en)
3. [Basics](https://hub.acctivate.com/articles/edi?hsLang=en#basics)

April 10, 2025

# What is EDI (Electronic Data Interchange)?

## EDI (Electronic Data Interchange) is how businesses communicate with each other to complete B2B (Business-to-Business) transactions.

EDI (Electronic Data Interchange) is how businesses communicate with each other to complete B2B (Business-to-Business) transactions. EDI facilitates the exchange of electronic data between systems for transactions such as orders, packaging instructions, shipping directions, shipping notices, and invoices with little human intervention. EDI automates routine tasks, eliminates data re-entry, quickens order and transaction processing, and increases accuracy. Globally, over 150,000 companies use EDI. In the case of a small business owner, EDI is what your business will use to engage in trade with Big Box stores. But as a small business owner, understanding what EDI is and how it works for your business takes more than just one simple definition.  

![What is EDI? Step 1, understanding how EDI works](https://acctivate.com/wp-content/uploads/2018/05/What-is-EDI-How-It-Works-1024x685.jpg)

For more information about EDI, please see our [EDI page](https://acctivate.com/features/edi-software/what-is-edi/) on Acctivate.com.

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