What is the difference between Electronic commerce and Electronic Data Interchange?

Electronic Data Interchange pre-dates internet e-commerce. EDI facilitates e-commerce.

-Electronic commerce is the process of buying, selling, or exchanging products, services, or information via computer networks.

-electronic data interchange (EDI) is the electronic transfer of specially formatted standard business documents, such as bills, orders, and confirmations, sent between business partners that has pre-dated the internet. It's been around since the late 70's. EDI's are traditionally processed by Value Added Networks (VANs), which are private, third-party managed common carriers that also provide communications services and security.

- VANs can be expensive are relatively expensive and inflexible.

-Since the advent of the internet, corporations are using a combination of internet based EDI or web EDI, as a more affordable option. Recent studies have shown that Web-based EDI experience superior performance, both internally and externally.

- Recently most major retailors are requiring their suppliers to conduct business via regular or Web-based EDI. EDI services are provide by companies such as GXS (gxs.com) and sterling commerce (sterlingcommerce.com).