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"Thanks for replying" is correct and usable in written English
You can use it as a polite way to acknowledge someone's response to your message. For example: "Thanks for replying. It was great to hear from you."
Similar(59)
and he replied: Dear Mr. Brown, Many thanks for the reply.
My reply: Professor, thanks for the reply.
"Roger, will be looking for 'em, thanks," he replied.
"Cool, Blythe, thanks!" I replied.
"Yes, I got some sleep, thanks," Kampe replied.
"I appreciate it, very flattering, no thanks," he replied.
"No, thanks," I replied.
"Got it, thanks!" I replied, clueless.
"No thanks," he replied "I'm good here".
A couple of days later I received an email, which was all well and good—I replied thanks for your time, and asked a few questions about the industry.
Told that the Democratic National Committee Web site runs on open-source software, Tony Welch, the national committee's press secretary, replied, "Oh, thanks for telling me".
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com