EDI vs XML: What’s the Difference? A Simple Guide for Retailers and Suppliers
If you are running an online store or supplying products to retailers, you’ve probably heard about EDI and XML. Many businesses feel confused when choosing between these two formats. The good news? You don’t need technical knowledge to understand the difference. Here is a very simple explanation.
What Is EDI?
EDI (Electronic Data Interchange) is a standard way for companies to exchange business documents automatically. With EDI, businesses send and receive things like orders, invoices, and shipping updates without manual work. Think of EDI as: A strict, structured language that companies agree to follow so they can understand each other perfectly.
What Is XML?
XML (Extensible Markup Language) is a flexible format used to structure data. It is more open and less strict than EDI, which means each company can create an XML structure in its own way. Think of XML as: A more relaxed language where each company writes its own style.
The Main Differences
Structure
EDI - Very Strict
XML - Flexible
Standard
EDI - Yes, global standards (EDIFACT, X12)
XML - No universal standard
Use Case
EDI - Retail, logistics, wholesale
XML - APIs, modern systems
Error Risk
EDI - Low
XML - Higher if companies structure differently
Speed
EDI - Very Fast
XML - Fast, but depends on the system
Which One Should Your Business Use?
If you work with large retailers, transport companies, or distributors, you’ll almost always need EDI. If you are integrating with modern systems or APIs, XML might also be used. Many businesses today actually need both.
How InMade Integrations Helps
We build simple, affordable, and fast integrations that hide all technical complexity. You don’t need to understand EDI or XML — we manage everything for you.
Fast setup
Clear and transparent communication
No complications
Works with any retailer or warehouse
EDI and XML serve different purposes, but both are essential in today’s digital supply chain. If you want help choosing or integrating the right option, InMade Integrations can start everything quickly for you.
Book a free call — we’ll guide you step by step.