What is a primary distinction between EDI and e-Commerce?

The primary distinction between Electronic Data Interchange (EDI) and e-Commerce lies in the nature of transactions they facilitate. EDI is specifically designed for structured, computer-to-computer exchanges of business documents between organizations, such as purchase orders, invoices, or shipping notices. This method streamlines and automates the process of exchanging essential business information, minimizing the need for human intervention and reducing errors.

In contrast, e-Commerce encompasses a broader range of online transactions that can involve various transaction types, including business-to-consumer interactions. E-Commerce allows customers to browse products and services, place orders, and facilitate payments, often using credit cards, through websites or applications. This expands the transactional scope beyond just B2B communications seen in EDI.

The other options either misrepresent the characteristics of EDI or e-Commerce or do not accurately highlight the differences between the two. Thus, the correct understanding of EDI being focused solely on computer-to-computer transactions highlights its specific role in business processes compared to the more generalized and inclusive nature of e-Commerce transactions.