How To Build an ERP Budget for Commerce (2026)

An ERP budget is a rough estimate of how much you plan to spend on a new enterprise resource planning (ERP) system. It gives you a foundation as you compare vendors, and a benchmark you can use to evaluate success after implementation. 

The challenge is that ERP budgets can vary significantly depending on the platform you choose, the integrations required, and any existing commerce data you’ll need to migrate to the new ERP system.

ERP initiatives can be difficult to execute. More than 70% of new ERP initiatives won’t fully meet their business goals by 2027, according to Gartner research. These aren’t small missed targets; as many as one-quarter of these initiatives will fail catastrophically.

This guide shares a practical, end-to-end ERP budgeting framework for commerce-first businesses, including every cost category from ERP software licenses to data migration and integration costs.

What goes into an ERP budget: The full TCO framework

Total cost of ownership (TCO) is the all-in price you’ll pay for an ERP solution. It goes beyond the initial sticker price to calculate how much you’ll spend using and maintaining the software during its lifetime, including:

• Software licenses or subscriptions
• Implementation costs, including internal resources and consulting fees
• Data migration costs
• System integration costs
• Contingency fees

Panorama’s 2025 report found the average ERP budget was $450,000, yet one-quarter of organizations said their ERP projects had gone over budget. Some 43% said technical issues were the cause of the overrun; another 35% underestimated project staffing costs, and 31% said consulting fees ran them over budget.

Software and licensing costs

In Panorama’s report, just over 70% of brands indicated they’d opted for cloud-based systems instead of hosted or managed options. Hybrid deployments that combine the two exist, but they can add complexity to a comprehensive budget. Most hybrid solutions are custom-quoted based on factors like your company size and licensing model. 

To calculate total software costs, ask the vendor to clarify:

• Up-front costs 
• Ongoing subscription fees
• System upgrade costs not covered by the vendor
• Flexibility 

Implementation costs: Internal resources 

A new ERP system can take months to deploy. Panorama’s 2026 study found the average ERP implementation took nine months. 

There are multiple approaches to implementation. Of the businesses surveyed by Panorama, only 15.9% chose a “big-bang” implementation, in which all of the company’s data goes live at once. A bit less than half (46.4%) took a phased approach, going live with a portion of the business at a time: 30% phased in by module, 8% by location, and 8% by business unit. The remaining 37.6% took a hybrid approach, combining elements of big-bang and phased deployment.

Whether you choose big-bang, phased, or hybrid deployment, work with your ERP vendor to analyze how long it’ll take to get the ERP system up and running. Account for everything from initial data preparation to system testing. Combine the estimated internal hours required with staff salaries to calculate the internal resource, both of the ERP implementation and the transition period.

At this phase, you should also calculate any infrastructure costs that you may incur. Check with your ERP vendor and your IT team to see if your new system has any technical requirements that go beyond what your current infrastructure can accommodate, and have IT give you a budget for what it will cost to get you up to spec.

Implementation support and consulting fees

Panorama’s 2026 study found of those who sought guidance from third parties, the most common type of support required fell into one of these categories:

• Technology assessments
• Software selection
• Software implementation 

The cost for ERP integration support depends on what level of support you need and the partner you choose for the job. Some offer fixed quotes for custom projects; others use a time and materials contract. Budgeting is more difficult with the latter as ongoing costs can increase with scope. Underestimated consultant fees were the culprit for 31% of budget overruns. 

Shopify brands can turn to Shopify Partners to manage the ERP implementation process. Shoe brand Gesswein, for example, worked with Shopify Plus Partner Zaelab to integrate Acumatica’s ERP with their commerce platform. 

“Zaelab was the right partner for our ecommerce migration to Shopify,” says Greg Gesswein, president and CEO at Gesswein. “Their experienced team helped us make the right decisions from early on. We're thrilled with our result and continue to work with Zaelab for continuous development.”

Data migration costs

List the connectors your business needs and any associated costs with migrating data from those sources into the new ERP. This includes custom data pipelines for tools with no native or direct integrations. 

Bedding brand Boll & Branch, for example, worked with Shopify Platinum Partner agency Diff Agency to build a suite of interconnected tools that eliminated the need for time-consuming and error-prone manual processes. Their ERP system now integrates everything from order sources to supply chain networks. The brand has since reported a four times increase in annual revenue prior to their ERP integration. 

Data quality is a hidden cost variable; Panorama’s report says ERP implementation success relies heavily on data-readiness. Account for ERP costs associated with pre-integration data audits that:

• Confirm data accuracy
• Eliminate duplicates
• Standardize data formats
• Resolve inconsistencies between departments

Once you’ve built the data pipelines, account for any costs associated with validating and testing. Failing to account for these up front in your initial ERP project budget might cause overruns that can occur if you have to spend time fixing data quality issues after the fact.

Integration costs, and why your commerce platform choice matters

The need for additional technology was the leading cause of budget overruns, according to Panorama’s 2026 study. This technology’s TCO is part of the broader ERP budget picture.

The commerce platform you choose to connect to your ERP has a direct effect on the integration line item of your budget. Shopify, for example, natively unifies POS, ecommerce, and B2B on the same infrastructure. 

Shopify’s TCO is up to 36% better than competitors because it acts as one single source of truth for commerce data. The Global ERP Program connects this unified commerce data with NetSuite, Brightpearl, Acumatica, Infor, and Dynamics 365 Business Central ERPs. 

SilkSilky even paired Shopify with a custom ERP system. Seamless integration meant SilkSilky reduced procurement costs by roughly:

• 20% in the first year after upgrading to Plus
• Another 30% in their second year
• More than 40% in year three, compared to initial levels

“Through the ERP system, SilkSilky can clearly see dynamic data on sales forecasts, production schedules, inventory estimates, and stock levels, and can use algorithms to minimize waste as much as possible,” says SilkSilky’s founder Sam Peng. “As a result, costs have significantly decreased, allowing prices to genuinely benefit consumers.”

What to ask your ERP vendor about integration

Surface integration costs before you sign a contract with a new ERP vendor by asking:

• Which of our current systems does the ERP integrate with natively, and which require custom middleware?
• Is each integration individually priced?
• Is integration work billed at a fixed price or per time and materials? 
• What are the cost implications of adding another data pipeline during implementation? 
• Who manages the integration after launch? Is ongoing support included?
• Is data integration testing time included in the quote? 

Contingency fees

Contingency costs act as a buffer for any extra fees you didn’t account for in your ERP budget. This is important as more than a quarter of ERP projects go over budget. 

The biggest reasons for time and budget overruns, per the same report, include:

• Additional technology that needed to be purchased
• Expanding the original project scope 
• Technical issues during integration
• Organizational issues
• Underestimated project staffing in the initial budget 

If you budget $350,000 as the TCO for a new ERP platform, for example, a 15% contingency leaves an extra $70,000 you can use for budget overruns or unexpected expenses, like buying additional technology or fixing technical issues. This brings the total ERP budget to $420,000. It’s smart to try to keep your budget low, but better to budget for a contingency than absorb unexpected overruns down the road.