In the interview with Dennis Baesch, Account Manager at Esker Software Entwicklungs- und Vertriebs-GmbH

In the private sphere, online shopping via shopping platforms and online retailers has long been part of everyday life. According to the German Retail Association (HDE), the B2C market volume on the internet reached 85 billion euros in 2021. Since the turn of the millennium, what was once a niche business has become a crucial economic pillar. The Covid pandemic further accelerated this development, resulting in annual growth rates in online retail of 23% (2020) and 17% (2021).

For young people in particular, purchasing all kinds of products and services over the internet is now indispensable. However, online trading is also steadily gaining importance in the B2B environment. A survey of German companies in March 2021 revealed that 24% of sales already take place via online shops and 16% via marketplaces. Much has been written and reported about setting up and using in-house (or hosted) online shops. In the expert interview with Dennis Baesch, Account Manager at Esker Software Entwicklungs- und Vertriebs-GmbH, we therefore turn our attention to connecting external shopping platforms and online marketplaces using electronic data interchange (EDI) to find out what advantages this option offers companies and how it can be implemented technologically.

DIGITAL FUTUREmag: Mr. Baesch, the principle of online and shopping platforms is based on bringing people together. In your opinion, what is their main feature?

Dennis Baesch: The principle of these platforms is not new: centuries ago, sellers and buyers already came together at marketplaces. Online and shopping platforms have transferred this to the internet. There, suppliers can offer their goods or services without having to build their own infrastructure. Customers, in turn, can quickly find the goods or services. Often, the platforms are characterized by ease of use for both sides, as the operators are constantly working to improve the user experience. Another plus for customers: on the platforms, products from different suppliers can be compared and ordered in one central location.

DIGITAL FUTUREmag: So are platforms the sales channels of the future?

Dennis Baesch: They already are. Because trading via platforms has steadily increased in recent times and there is no sign of this trend reversing. On the contrary: due to network effects, the large platforms are growing ever larger and are becoming indispensable sales channels for many companies. In addition, customers clearly expect to be able to find and purchase products on digital platforms. This further increases the pressure on companies to enter the digital marketplaces of the 21st century.

DIGITAL FUTUREmag: Does this also apply to companies that operate exclusively in the B2B sector?

Dennis Baesch: Of course. Even B2B customers expect to be able to purchase products and services online without having to visit each supplier’s individual shop. In addition, many B2B marketplaces have emerged in recent years, each with different focuses. Some bring together players from specific industries, while others prioritize geographic regions or other criteria. The key point: companies should identify and integrate the marketplaces most relevant to their business and then focus on the “rest” – in other words, adopt a top-down approach.

DIGITAL FUTUREmag: How do you support companies in this process, and do you have a practical example?

Dennis Baesch: Esker EDI Services offers numerous connections to B2B marketplaces, online and shopping platforms. We have been helping companies connect to these important new sales channels for several years now, handling all the tasks involved. The connection is quick, easy and seamless via the Esker EDI Cloud. This means companies only incur minimal staffing and technical overhead, allowing them to focus on their core business.

A good example of this is the connection to Amazon Vendor Central. This allows companies to offer their products on the popular Amazon shopping platform. Electronic data interchange (EDI) enables automated order processing. After setting up an account with Amazon Vendor Central, Esker EDI Services experts configure the EDI connection to the platform. As a listed provider, the connection can be established very quickly. Once test items are set up in the platform, extensive tests are conducted with all desired message types (orders, order confirmations, delivery notices, invoices, inventory and sales reports). No “human” intervention is required on the part of Amazon Vendor Central during the process. That’s why Esker EDI Services supports companies throughout the entire setup process. We also remain on hand after go-live.

DIGITAL FUTUREmag: How will data exchange with online and shopping platforms develop technically?

Dennis Baesch: Currently, integration with marketplaces is handled in the proven way via classic EDI. This can be seen as a (small) project that can be implemented in 8–12 weeks. Some B2B marketplaces also offer integration via a connector in addition to classic EDI integration. The advantage of this approach: Integration can be completed even faster because the connector acts like an adapter. Your own EDI system is connected to the connector via plug-and-play, and the EDI connection is established. However, such a connector must first be programmed and configured. The corresponding setup is significantly more complex than a simple EDI integration. That’s why EDI service providers typically provide connectors, and individual users don’t build them themselves. It can be assumed that there will be increasingly more connection options via connectors in the future.

DIGITAL FUTUREmag: What makes your integration expertise so unique?

Dennis Baesch: We have been in the EDI business for more than 35 years and, as an EDI specialist within the Esker Group, sustainably improve the everyday processes between business partners. Electronic data exchange in the Esker EDI Cloud replaces manual, time-consuming processes with digital, standardized methods. Companies reduce non-value-adding efforts and accelerate their core business. With 750 customers and more than 5,000 connected partners in 24 countries, Esker EDI Services is one of the leading providers in the EDI market. Our products are functional, quick to set up, and particularly high-performance.

DIGITAL FUTUREmag: Thank you very much for your recommendations on how integrating external web portals can optimize your own sales processes.