Xero vs NetSuite for Ecommerce: Key Differences Explained

What happens when your ecommerce business outgrows basic accounting software? Do you stick with something simple like Xero, or move up to enterprise-level NetSuite?

You're not the first to face this. The Xero vs NetSuite debate is one that many growing ecommerce brands encounter, especially when sales are rising but your accounting stack feels stitched together with digital duct tape.

The truth is, Xero and NetSuite are worlds apart. One prioritizes ease of use for growing businesses, while the other offers enterprise-level complexity. Picking the wrong one could either limit your growth or leave you buried in features you have no use for.

This post explains how Xero and NetSuite are different when it comes to ecommerce businesses. It covers where both platforms perform well and where they might stumble. It also looks at how tools like Webgility can help you connect, grow, and keep things running, no matter which platform you go with.

About Xero and NetSuite

Xero offers cloud-based accounting solutions built with small to medium businesses in mind. This platform is well-known for its user-friendly interface and straightforward functionality. 

Founded in 2006, Xero focuses on making accounting accessible to business owners without extensive financial backgrounds. Its key tools include invoicing, tracking expenses, and reconciling bank transactions all accessible through an intuitive platform.

Xero’s review on Reddit:

NetSuite offers a complete ERP system that covers more than just accounting, including tools like CRM, inventory tracking, and business insights. Acquired by Oracle in 2016, the platform provides solutions to meet the needs of mid-sized and large businesses handling complex operations. 

It gives organizations access to advanced customization and integration options to manage business processes effectively.

NetSuite’s review on Reddit:

Core features comparison: Accounting fundamentals

Here’s how Xero and NetSuite stack up on essential accounting and financial features for ecommerce businesses:

• Invoicing and billing capabilities

Xero offers an easy-to-use invoicing tool that works well for small and mid-sized ecommerce companies. It includes customizable templates, recurring billing, automatic payment reminders, and integrations with payment systems like Stripe, PayPal, and Square, making it easy for customers to pay online. While it handles simple billing well, more complicated setups might need extra third-party tools.

NetSuite provides enterprise-level billing with complex pricing rules, contract-based billing, and advanced revenue recognition. It supports different billing models such as subscription plans, usage-based models, and milestone payments, which suit businesses managing complex revenue streams.

• Expense management

Xero’s expense management is ideal for businesses with simpler reimbursement needs. It allows employees to submit expenses via mobile, with receipt capture, basic approval workflows, and direct integration into the accounting ledger.

NetSuite offers comprehensive expense management with multi-level approval workflows, project-specific tracking, and complex scenarios like intercompany expenses and multi-currency reimbursements.

• Bank reconciliation

Xero features user-friendly reconciliation with intelligent matching suggestions and real-time bank feeds from thousands of banks worldwide.

NetSuite provides robust reconciliation, plus cash forecasting and treasury management, handling multiple accounts across different entities and currencies.

• Financial reporting

Xero gives basic but important reports like profit and loss, balance sheets, and cash flow. These reports are easy to understand and let users dig deeper into transactions when needed.

NetSuite offers much more detailed reporting. It includes customizable dashboards, advanced analytics, and consolidated financial statements across multiple subsidiaries.

• Tax compliance features

Xero supports automated sales tax calculation by region (US, Canada, Australia, UK, etc.). It connects with Avalara to provide advanced tax automation. This allows ecommerce businesses to track and apply accurate tax rates across different states or countries, and generate tax reports for easier filing.

NetSuite provides advanced tax management tools. It includes support for multiple jurisdictions, automatic updates, and handles complex cases like transfer pricing or international rules.

Advanced functionality

• Inventory & project management

This is one of the biggest differences between these two platforms. Xero offers basic tools to track inventory, which suits small ecommerce shops that have a limited number of products. It lets users monitor stock levels and link items to sales or purchases, but lacks advanced features like demand forecasting or multi-warehouse support. Project tracking is available in higher-tier plans and works best for simple, service-focused tasks.

NetSuite provides strong built-in inventory tools with options such as demand planning, lot/batch tracking, multi-location warehousing, and bin management, essential for high-volume, multi-channel ecommerce. Its project accounting tools help manage initiatives like product launches or operations projects with full visibility into time, budget, and resources.

• CRM integration

Xero connects with different CRM systems by using its app marketplace. Most of these options, however, come from third-party providers, which can add extra costs and make setup more complicated.

NetSuite offers its own built-in CRM module. It uses one system to handle customer relationships, sales processes, and order tracking. This setup avoids data silos and gives you a full view of your customers.

• Multi-currency support

Multi-currency support is only available in the top-tier "Established" plan. Although, it covers major currency conversions, it lacks automation features like daily exchange rate updates or currency gains/loss tracking, making it less ideal for international operations at scale.

NetSuite’s multi-currency capabilities are enterprise-grade, with real-time exchange rate updates, currency revaluation, and consolidated financial reporting across international entities. This makes it a strong choice for global sellers or businesses expanding into international markets.

User experience and interface

• Dashboard design and navigation

Xero’s dashboard keeps things simple and clear. It shows important financial info in a way that's easy to understand. The navigation is intuitive, with a clean interface that reduces cognitive load for users. Most of the new users can handle basic tasks just a few minutes after signing in.

NetSuite’s design focuses on being powerful, but it is relatively hard to use. It is primarily built for finance, operations, and IT professionals. The dashboard is customizable and can display real-time KPIs, sales performance, and inventory trends. However, its depth and configurability come at the cost of usability, new users often require training to navigate efficiently.

• Mobile app functionality

Xero has a strong mobile app that lets users create invoices, approve bills, reconcile bank transactions, and scan receipts. These mobile responsive features make it easy for ecommerce sellers and remote teams to manage finances on the go. The app has a good rating on both iOS and Android platforms for its usability and reliability.

NetSuite’s app allows users to check dashboards, view records, and handle basic approvals. But compared to the desktop version, it has fewer features. It struggles with more detailed tasks like advanced reporting or managing inventory.

• Customer support and resources

Xero provides 24/7 email support, a comprehensive knowledge base, and an active user community. While it doesn’t offer phone support, its online resources and responsiveness generally meet the needs of small business users.

NetSuite offers tiered support plans, which can include phone support, dedicated success managers, and faster response times, but at an additional cost. Their support is more enterprise-oriented, with access to solution consultants, in-depth documentation, and customer success portals.

Pricing structure

Here's how Xero and NetSuite compare across pricing tiers, features, and user limits:

Xero:

• Starter: $ 2.90/mo – limited invoices & bills
• Standard: $4.60/mo (unlimited)
• Premium: $6.90/mo – includes multi-currency
• Users: Unlimited (all users)

NetSuite:

Pricing is per user, but the per-user cost is not generally published; it scales with edition and included modules.

Integration capabilities

• Third-party app ecosystems

Xero provides a large app marketplace that includes more than 1,000 integrations. It covers everything from ecommerce platforms to specialized industry tools. Popular integrations include Shopify, WooCommerce, Square, and numerous payment processors. 

NetSuite has fewer third-party apps compared to Xero but focuses on offering stronger and more detailed integrations. The SuiteApp ecosystem includes sophisticated applications built specifically for NetSuite's architecture. This ensures smooth data connections and an all-in-one experience for users. Common integrations include Salesforce, Shopify Plus, Webgility, SPS Commerce, Avalara, and others.

• API availability and flexibility

Xero provides an open REST API that is well-documented and easy to work with, enabling developers and third-party platforms to build custom integrations. It supports access to key modules like invoices, contacts, payments, inventory, and more. 

NetSuite’s SuiteTalk API and SuiteScript tools allow for deep, highly-customizable integrations, including real-time data exchange, custom triggers, and complex workflow automations. 

• Data migration considerations

To migrate data, Xero makes the process simple. It includes built-in tools to import data from common accounting platforms and supports CSV file imports. Its straightforward data structure helps businesses finish migrations with little disruption.

Moving to NetSuite takes more effort and needs detailed planning, often requiring help from experts. Its detailed data structure requires better mapping and checking, but it gives a more finished and robust business setup.

Scalability and growth potential

Xero scales well for small to medium businesses, handling increased transaction volumes and additional users gracefully. However, businesses may eventually outgrow Xero's capabilities, particularly around advanced inventory management, complex reporting, or multi-entity requirements.

NetSuite is designed to scale from mid-market to large enterprise requirements. The platform can handle complex organizational structures, high transaction volumes, and sophisticated business processes without performance degradation.

Industry-specific considerations

Xero is best suited for freelancers, ecommerce startups, digital-first brands, and accounting firms. Its lightweight features and affordable pricing appeal to sellers running lean operations, especially those using platforms like Shopify, Etsy, or Amazon FBA. 

It's also popular among accountants managing books for multiple small clients, thanks to its ease of use and clean reporting. For single-channel ecommerce businesses with straightforward needs, Xero offers a reliable foundation.

NetSuite fits growing and large-scale businesses such as B2B ecommerce, wholesale, manufacturing, SaaS brands, and multi-outlet retail chains. It specializes in handling large transaction volumes, warehouse management, and team collaboration. 

Ecommerce businesses with complex pricing models, customer-specific terms, or a mix of DTC and wholesale channels will benefit from NetSuite’s integrated approach across accounting, inventory, CRM, and order management.

Pros and cons summary

Xero Pros

• Exceptional ease of use with minimal learning curve
• Extensive third-party app ecosystem
• Excellent bank integration and reconciliation
• Strong mobile app functionality
• Suitable for remote and distributed teams
• Quick implementation and onboarding

Xero Cons

• Basic inventory management requires add-ons
• May not scale to enterprise requirements
• Lacks integrated CRM functionality
• Limited multi-entity capabilities

NetSuite Pros

• Highly customizable to specific business needs
• Robust inventory and supply chain management
• Advanced financial reporting and analytics
• Strong multi-currency and international capabilities
• Excellent scalability for growing businesses
• Integrated CRM and project management

NetSuite Cons

• Complex implementation requiring significant time and resources
• Steep learning curve for new users
• Requires ongoing technical support and maintenance
• Less intuitive user interface compared to simpler alternatives

How Webgility integrates with both

Webgility connects seamlessly with both Xero and NetSuite, giving ecommerce businesses a streamlined, automated backend. Rather than forcing a choice between platforms, Webgility enables businesses to leverage their preferred accounting system while maintaining seamless ecommerce operations.

For both platforms, Webgility enables:

• Automatic syncing of orders, inventory, fees, payments, sales tax, and transactions from Amazon, Shopify, eBay, Walmart, and other sources
• Inventory syncing to keep stock levels correct on all platforms
• Accounting reconciliation that provides clear and detailed transaction records

Instant tracking of sales channels removes the need to input data and minimizes mistakes. Whether you begin with Xero and switch to NetSuite later or pick NetSuite right away, Webgility meets your needs now and helps you expand later. Choose the best stack for now, and be ready to scale later.

Core features comparison

Xero vs NetSuite: Which platform is right for your business?

Let’s be real. When it comes to Xero vs NetSuite, the decision isn’t just about the platforms themselves. It’s more like choosing between “keep it simple now and upgrade later” or “start complex but scale.” Both options can work fine. 

Xero helps you get moving when cash flow is your focus. On the other hand, NetSuite is built to handle complexity when your business starts growing big. 

The mistake is staying too long with the wrong choice.

The good news? You don’t have to choose your accounting platform in isolation.
Webgility integrates with both Xero and NetSuite, giving you the flexibility to scale operations without overhauling your systems. Whether you’re beginning with Xero or plan to move to NetSuite later, Webgility gives you a reliable automated backend that evolves alongside your business.

No matter what platform you go with, let Webgility help you maximize its power.

✅ See how Webgility works with Xero

✅ See how Webgility works with NetSuite

Spend more time growing your business, not struggling with your tools. Discover how Webgility supports both platforms and build the system that scales with you.