In recent years, outsourcing has become a business strategy for scaling operations while managing expenses. According to a Deloitte study, 52% of executives outsource business functions.
Outsourcing is a valuable tool for organising processes and boosting productivity across various industries, especially for the quickly expanding ecommerce market. COVID-19 accelerated the shift of ecommerce businesses in Australia from offline to online sales, with an estimated market value of A$91.5 billion by 2025.
With this rapid expansion, ecommerce companies use outsourcing to extend their operations and meet demand. Today, enterprises outsource crucial tasks to concentrate on their core strengths and free up resources for growth and expansion.
Examine how outsourcing can aid your ecommerce operations in growing. Continue reading below to learn more!
How Outsourcing Can Scale Ecommerce Businesses
Outsourcing ecommerce services is a game-changer for organisations wishing to expand their operations. Here are some of the main arguments favouring outsourcing for growing ecommerce enterprises.
Reduces operational costs
A survey found that the primary motivation for outsourcing business processes was to reduce expenses. By utilising a worldwide talent pool with reduced labour costs, outsourcing can assist your ecommerce enterprise in reducing its operational costs.
Partnering with an outsourced company can also provide you with resources for hiring, training, and building tools, which could be expensive to establish independently.
Improves efficiency and productivity
Ecommerce businesses can increase their productivity and efficiency by outsourcing tasks like order fulfillment and customer care. When you delegate specific tasks to an outsourced staff or team, you can concentrate on building your business without worrying about mundane administrative tasks.
Provides access to ecommerce experts
With outsourcing, you can access a network of experts dedicated to providing relevant solutions for your company. Their vast talent pool of individuals has specialised knowledge and abilities in their field, making them a great addition to your team.
Improves security
Executives identified cybersecurity as the top external impediment to accomplishing their strategic goals, and 81% rely on third-party vendors to supply these capabilities. You can enhance your security by working with firms that focus on cybersecurity and risk management.
Since outsourcing companies collect and manage hefty data loads, their partners expect them to have reinforced security systems to protect these information pieces. By association, they can assist you in reducing risk and safeguarding your clients’ private information.
Fosters scalability
Flexibility is one of outsourcing’s main benefits. Businesses can scale their services as needed without the extra costs of hiring and firing staff by outsourcing ecommerce tasks like customer service, order fulfilment, and digital marketing.
It implies that companies can swiftly and effectively change their operations to suit fluctuating demand without compromising effectiveness or productivity.
Take Microsoft, for example. The multi-trillion-dollar company’s outsourcing strategy maximises computing resources and budgets and reduces administrative costs. By enhancing service management and support operations, outsourcing helps Microsoft quickly cut IT support expenses by a ton.
Key Areas of Ecommerce Operations to Outsource
As ecommerce businesses grow, managing all aspects of operations in-house can become increasingly challenging. Outsourcing certain tasks can help companies achieve growth. Here are some crucial areas of ecommerce businesses you can consider outsourcing for your brand.
Website development and maintenance
A lack of qualified web designers and developers raises the cost of available talent today. In 2021, the global talent deficit affected 40 million skilled workers. Conversely, outsourcing is easily accessible due to the intense competition in the industry.
By outsourcing ecommerce operations to talented web designers, you can create striking, interactive, and user-friendly online stores that improve brand recognition and customer experience. Professional call centre outsourcing services can also help boost sales and develop a strong online presence within your sector.
Order processing
Ecommerce services include order processing, which deals with receiving and completing orders. It directly affects client experience and, eventually, your revenue.
Contact centre services can handle order validation, question resolution, status checking, and cancellation management. By outsourcing order processing, you can avoid training and managing a large staff and save money, freeing up resources for other business areas.
Marketing and advertising
In a survey by Statista, nearly half (47%) of marketing professionals said they outsourced visual design as part of their content generation process. The study further revealed that video design (43%) and copywriting (37%) were the second and third most commonly outsourced tasks.
An outsourced team can create and implement ecommerce marketing plans to raise awareness of your goods and services within your target market. They can effectively market and advertise your enterprise, bringing new customers in by bringing notice to your brand.
Customer support and feedback
Meet client expectations by providing good customer service in ecommerce. Outsourcing customer service can help you concentrate on core capabilities while delivering exceptional customer support. It also allows you to offer 24/7 service, improving client retention and satisfaction levels.
Bookkeeping and accounting
The global finance and accounting outsourcing market is expected to reach US$68.8 billion by 2030, with a CAGR of 6% from 2022 to 2030. Ecommerce technology and expert financial services can help businesses better allocate resources to key functions like website maintenance, product development, and sales/marketing expansion.
Inventory management
You can also outsource inventory management by allowing an outside company to manage and store your goods. These third-party vendors can collect and maintain inventory data, reducing loss, damage, and discrepancies while boosting profit margins.
Potential Risks and Challenges of Outsourcing in Ecommerce
Quality control issues
Outsourcing a service for your business entails letting go of some control over your operations. However, this shouldn’t be a big issue if you work with a professional outsourced service provider and trust them.
You can mitigate quality issues through clear communication, regular check-ins, and setting clear expectations and goals.
Data security concerns
As an ecommerce business, you’ll likely deal with sensitive customer data that need protecting. Data security is of utmost importance when choosing an outsourced partner, regardless of the area of your operations they’ll work on.
Select an outsourcing partner with robust security protocols and compliance measures in place, and be sure to define the terms of data protection in your agreement clearly.
Cultural and language barriers
You can expect to work with staff with different cultures and first languages when you outsource global talents. As such, research and vet potential outsourcing partners thoroughly and clearly define expectations and requirements before beginning work.
Tough competition
The ecommerce industry is a fast-paced and ever-competitive space. Rising above may become challenging for small firms, especially if you don’t know how.
A smart way for your business to start making a name for itself is by partnering with a reliable outsourcing partner that can elevate your operations. Just ensure that you choose a service provider whose core values align with yours to ensure seamless collaboration.
Hidden costs
Another potential risk of outsourcing in ecommerce is the hidden costs of services offered. Despite an easy cost estimate at the beginning of the discussion, unexpected expenses like upgrades, troubleshooting, and after-hours service charges not covered in the contract can nullify the cost savings of outsourcing.
To mitigate this risk, you should clarify requirements, study tariff plans, and sign a service-level agreement that includes all necessary services and costs.
Best Practices for Outsourcing Ecommerce Operations
Outsourcing can improve your business operations, but it also comes with unique challenges. Companies must carefully evaluate their options to fit their enterprise’s needs. Here are some tips for ecommerce businesses looking to outsource effectively.
Identify your goals and expectations
Knowing your goals, such as saving operational expenses and increasing customer satisfaction by a certain percentage, is crucial to excelling. Once you’ve identified them, choosing the ideal service provider becomes more straightforward. You can tell your expectations to the provider, including the specific elements of the project you wish to outsource.
Establish clear communication and collaboration
Successful outsourcing depends on effective communication, promoting transparency and preventing misunderstandings among all parties involved. Effective communication techniques with service providers include scheduling regular meetings and utilising project management software to monitor task progress. Remember to promptly address issues that arise and seek help if needed.
Monitor your ecommerce performance and results
Use key performance indicators (KPIs) to monitor and assess your outsourcing partnerships. When determining your metrics, be specific for a particular project. Doing so will enable you to evaluate the effectiveness of the outsourced work.
Respect cultural differences
When outsourcing to another country, expect cultural differences and consider them when managing projects to avoid team friction. Failure to do so could result in lost investments and damage your company’s reputation for being tough to work with.
Talk about ownership early on
When you begin working together, discuss property rights and decide who owns what before moving further. Otherwise, there’s a risk that one party may attempt to claim credit for the other’s work. Before starting any job or task, you should ensure you’re clear on this crucial point.
Take your time to weigh your options
Selecting the right ecommerce services team for your project is vital for its success. To ensure the best fit, clearly define your requirements when searching for an outsourcing partner, whether for ecommerce marketing or administrative services.
Although finding a trustworthy team may be difficult and time-consuming, it’s important not to rush the decision-making for your organisation.
Unlock Your Business’s Full Potential with Outsourcing
Outsourcing is becoming an increasingly popular way for ecommerce businesses to scale quickly and efficiently. You can focus on your company’s core competencies and invest more time and resources into exploring growth opportunities. Nonetheless, outsourcing can present challenges, necessitating you to carefully consider your options to ensure success for your brand.
A trustworthy and competent outsourcing partner can help you grow by providing the necessary skills and expertise. As an established and reliable outsourcing partner, Select VoiceCom offers customised solutions for businesses looking to streamline their operations and improve customer experiences.
With our experienced team and state-of-the-art technology, we’re well-equipped to help ecommerce businesses reach new heights. Ready to grow your business with the experts? Contact SVC today to get started!