Why E-Commerce Giants Are Ditching Legacy ERPs for Cost-Effective SMB Accounting Solutions

Today, I had an insightful call with a large e-commerce merchant who shared their experience managing operations across the UK, EU, and USA.

This merchant uses Sage for inventory management and Shopify for e-commerce.

But here’s the twist: they decided to move on from Sage.

Why the Switch?

The capabilities they needed, such as seamless multi-channel inventory management, were out of reach.

Problems that Linnworks could easily solve.

The merchant decided to migrate from Sage to Linnworks, a solution specifically designed to efficiently manage platforms like Shopify, Amazon, and others.

For their HMRC compliance, they’ve chosen cloud accounting on Xero. Xero will manage summarized accounting, while order management will take place in Linnworks.

A smart move, combining the strengths of two specialized systems, eliminating the need for costly, complex ERP software.

But that’s not all.

Let me tell you about another enterprise e-commerce merchant.

A CFO from a large enterprise with operations in 15 countries moved away from a fancy ERP system. Why? Cost and complexity. Instead, they adopted cloud accounting software like Xero and QuickBooks Online.

Here’s the reason,

Extensive App Marketplaces & Cost-Effectiveness: Both Xero and QuickBooks Online offer extensive app marketplaces. These marketplaces provide access to business productivity tools at a fraction of the cost of traditional ERP systems.

In fact, the combined value of using Xero or QuickBooks Online along with approximately 10+ apps, often surpasses what legacy systems like Sage, NetSuite, or Business Central can deliver at a much lower price point.

The Growing Trend

After discussing this with several CFOs and e-commerce merchants, I noticed a growing trend, particularly in the UK.

Companies are deliberately steering away from complex, expensive ERP systems. Instead, they’re embracing SMB-focused software that delivers high value, simplicity, and exceptional customer service.

Would you agree?

As more businesses transition to modern SMB-focused software, the advantages of customization, affordability, and simplicity are becoming undeniable.

Have you experienced this shift in your business?

What’s your take on moving away from legacy ERP systems to embrace these modern, cost-effective solutions?

We would love to hear your thoughts on this shift. Let’s discuss it!