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Inventory · head to head

ERPNext vs Zoho Inventory

ERPNext logo

ERPNext

Inventory

Open-source ERP solution for SMEs and growing businesses

From
Free
Rated
-
Full reviewWebsite
Zoho Inventory logo

Zoho Inventory

Inventory

Complete inventory and order management system

From
Free
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: ERPNext the software is AGPL-3.0 licensed, which imposes source disclosure obligations on anyone distributing a modified network service built on it; Zoho Inventory free plan limited to 25 products and 50 orders per month
  • They diverge on capability: ERPNext covers Accounting, Zoho Inventory covers Multi-channel selling.
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which ERPNext and Zoho Inventory actually diverge.

Attributes where ERPNext and Zoho Inventory differ
AttributeERPNextZoho Inventory
Pricing modelfreemiumUnknown
PlatformsSelf-hosted, Cloud, WebWeb
Founded20141996

Identical on both: starting price (Free), free tier (Yes), user rating (Not yet rated), category (Inventory).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in ERPNext

  • Accounting
  • Inventory
  • Manufacturing
  • CRM
  • Human Resources
  • Payment gateways
  • Email systems
  • Custom extensions

Only in Zoho Inventory

  • Multi-channel selling
  • Inventory sync
  • Order management
  • Purchase orders
  • Barcode management
  • Email integration
  • Automated workflows
  • Zoho ecosystem

Both cover

  • Web support

What people use each for

The jobs each tool is most often brought in to do.

ERPNext

  • Enterprise resource planning for small to medium businessesnot Zoho Inventory
  • Accounting and financial managementnot Zoho Inventory
  • Inventory and stock managementnot Zoho Inventory
  • Supply chain managementnot Zoho Inventory

Zoho Inventory

  • Multichannel order managementnot ERPNext
  • Inventory trackingnot ERPNext
  • Fulfillment automationnot ERPNext
  • Supplier managementnot ERPNext

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

ERPNext

  • The software is AGPL-3.0 licensed, which imposes source disclosure obligations on anyone distributing a modified network service built on it
  • Managed hosting is priced per site and per server rather than per user, so a small team running several sites pays more than a large team on one
  • Dedicated server isolation and stronger reliability guarantees start at $125 a month
  • Self hosting is free but places upgrades, backups and availability entirely on the operator

Zoho Inventory

  • Free plan limited to 25 products and 50 orders per month
  • Advanced automation features require higher-tier plans
  • Limited customization compared to enterprise solutions

Pricing, plan by plan

ERPNext

Free
  • Community EditionFree
  • Frappe Cloud Starter$14/month
  • Frappe Cloud Standard$50/month
  • Frappe Cloud Professional$100/month

Zoho Inventory

Free

No published plan breakdown. See the Zoho Inventory review.

Which should you pick?

Choose ERPNext if

  • You need accounting.
  • You want to start without paying.
  • You work on Self-hosted, Cloud, Web.
  • You also want inventory.
ERPNext review

Choose Zoho Inventory if

  • You need multi-channel selling.
  • You want to start without paying.
  • You also want inventory sync.
Zoho Inventory review

Questions people ask

Is ERPNext or Zoho Inventory better?
Neither clearly leads. ERPNext starts at Free and Zoho Inventory at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, ERPNext or Zoho Inventory?
ERPNext starts at Free and Zoho Inventory at Free.
Does ERPNext or Zoho Inventory run on more platforms?
ERPNext runs on Self-hosted, Cloud, Web. Zoho Inventory runs on Web.
Can I use ERPNext for free?
Both have a free tier, so you can try either at no cost before committing.
What is ERPNext best used for?
ERPNext is most often used for enterprise resource planning for small to medium businesses, accounting and financial management, inventory and stock management, supply chain management. Of those, enterprise resource planning for small to medium businesses and accounting and financial management are not what Zoho Inventory is typically brought in for.
What can ERPNext do that Zoho Inventory cannot?
ERPNext covers Accounting, Inventory, Manufacturing, CRM. Zoho Inventory covers Multi-channel selling, Inventory sync, Order management, Purchase orders. Both handle Web support.

Answered from the vendors’ own pages

ERPNext: Is ERPNext free?

Yes, ERPNext Community Edition is completely free and open source with no hidden paywalls. Everything is available to use, modify, or resell at no cost. Users can also access professional hosting through Frappe Cloud starting at USD$14 per month.

Source
Zoho Inventory: Does Zoho Inventory have a free tier?

Yes, Zoho Inventory offers a perpetual free plan limited to 25 products and 50 orders per month, ideal for small businesses just starting out.

Source
ERPNext: What is Frappe Cloud pricing based on?

Frappe Cloud pricing is compute-based rather than per-user licensing. Costs range from USD$14 to USD$108 per month depending on resource needs. The pricing advantage is that hosting costs do not scale linearly with the number of users, unlike traditional per-seat SaaS models.

Source
Zoho Inventory: What sales channels does Zoho Inventory integrate with?

Zoho Inventory integrates with major online marketplaces including Shopify, Amazon, eBay, Etsy, and WooCommerce, with automatic stock and order syncing across all integrated channels.

Source
Zoho Inventory: Can Zoho Inventory manage multiple locations?

Yes. The free plan supports up to two locations, with paid plans supporting multiple warehouses and locations for larger operations.

Source
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