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for understand the power of external Id in salesforce go to below link
http://www.infallibletechie.com/2014/11/what-is-external-id-in-salesforce.html (http://www.infallibletechie.com/2014/11/what-is-external-id-in-salesforce.html)
i hope it helps you to understand how to use external id in salesforce
thanks
let me inform if my answer helps you
Please check below post for same
1) http://blog.jeffdouglas.com/2010/05/07/using-exernal-id-fields-in-salesforce/
2) https://help.salesforce.com/articleView?id=faq_import_general_what_is_an_external.htm&type=0
3) https://douglascayers.com/2016/02/07/salesforce-power-of-upsert-and-external-ids-part-1/
4) https://douglascayers.com/2016/02/07/salesforce-power-of-upsert-and-external-ids-part-2/
What is an external ID?
When importing custom objects, solutions, or person accounts, you can use external IDs to prevent the import from creating duplicate records.
An external ID is a custom field that has the External ID attribute, meaning that it contains unique record identifiers from a system outside of Salesforce. When you select this option, the Data Import Wizard detects existing records in Salesforce with external IDs that match those in the import file. This operation is not case-sensitive. For example, “ABC” is matched with “abc”. However, if the external ID field also has the case-sensitive Unique attribute, uppercase and lowercase letters aren’t considered identical.
External Id is used in upsert operations.
- If external id is absenor not matched then insert happens.
- If external id matched once then record will be updated.
- If external id is matched multiple times then error occurs.
Let us know if this will help you