Some companies struggle to maintain smooth operations as e-Commerce shops are becoming more popular among consumers.
This can lead to operational bottlenecks or decreased efficiency. Both can hurt your bottom line.
We’ll be showing you how e-commerce customer support outsourcing can help you efficiently and economically meet your operational needs.
The Benefits of Outsourcing an Ecommerce Business
Many eCommerce companies outsource parts or services of their operations to third parties. Email support, IT support, and other human-resource-related tasks are some of the most common elements that businesses outsource. This is a common way for businesses to save money on essential tasks that they cannot afford.
Outsourcing your eCommerce business can bring more than financial savings. Outsourcing can help solve many problems that companies are unable to solve internally, depending on the needs of your company.
These are six benefits of outsourcing your e-Commerce business.
Outsourcing can bring you huge cost savings. Outsourcing can help you save 70%- 90% on overhead costs. With a fixed monthly fee, you can replace the cost of managing an internal staff, including salaries, benefits, training, recruitment, and replacement expenses. You can also scale this fee depending on your requirements.Outsourcing eCommerce functions can be a cost-effective way to reduce operational expenses. Outsourcing allows eCommerce companies to optimize their Opex, and Capex and protect their bottom line per worker.
- Leverage Expertise Fast
Online store management requires many skills. These include customer support, technical website maintenance, and fulfillment management. eCommerce businesses often outsource because they can quickly access skilled expertise.
If you have an eCommerce store in more than one location, outsourcing is essential. Payment security protocols vary by country or region. A reliable e-commerce provider can ensure that everything is in order. This provider can manage multilingual and multi-regional customer services to help shoppers around the world.
- Allot Risk
You also transfer liability and risk to your provider when you outsource. They will manage all risk reduction programs for your customer to ensure that their data is safe.
An experienced and reliable eCommerce outsourcing provider will be able to manage large projects that have high-security requirements. They can spot potential threats to your website such as traffic surges or credit card fraud and will respond accordingly.
Our tip for outsourcing customer service: To ensure your safety in any situation, assess the security protocols of the provider.
- Flexibility in Resources
You can easily scale outsourced services up or down to maintain financial flexibility for your eCommerce business. This is possible depending on the demand. You can, for example, hire more customer service agents during holidays when demand and sales are high. You can also downscale during the off-season.
Third-party providers can provide additional support for urgent needs when it comes to outsourcing employees.
- Drive Innovation
Companies can outsource to keep up with changing market conditions and meet ever-changing consumer demands. To ensure that the best practices in eCommerce are being followed, they can use existing technologies and resources.
- Get a Competitive Advantage
Outsourcing for e-Commerce businesses can give you a competitive edge. Outsourcing e-commerce services allows companies to focus on their core competencies, increase productivity, and effectively manage in-house resources. Outsourcing can help you outperform your competitors, even if they aren’t as smart as you.
Why do ecommerce Businesses Outsource?
Ecommerce companies outsource services to benefit from existing technology and global talent. They seek to increase their competitive edge and improve customer experience. When they tried to level the playing fields in eCommerce, even small to medium-sized businesses saw the benefits of outsourcing.
It’s not surprising that eCommerce companies outsource tasks. This industry is rapidly growing, so businesses need to keep up even though it can be costly.
According to the latest reports, e-commerce generated $4.9 trillion in worldwide sales in 2021. This figure is expected to increase by 50% in the next four years. Global companies such as Alibaba, eBay, and Amazon have been able to benefit from the partnership between technology and retail.
Business owners may be able to outsource repetitive, tedious tasks and allow them to focus on other areas of the business. This allows them to operate more efficiently.
A role for Outsourced Call Centers in Ecommerce
An outsourced phone center allows eCommerce businesses to delegate customer service management to outside agencies. Ecommerce businesses can outsource support functions such as live chat, inbound calls, and mobile support.
We’ve seen e-commerce companies increase their live chat and social media support team sizes in the last few years. They also have more call center agents. This is due to an increase in social media users, as well as other platforms that allow customers to make inquiries and purchases.
Outsourcing customer support is still vital, despite the popularity of chatbots. Customers value human interaction and this is why outsourcing it to customers continues to be a viable option. Chatbots cannot handle complex inquiries. Chatbots can only handle simple inquiries.
Outsourcing Services to an e-commerce Business
There are many functions that an eCommerce company can outsource. These are some of the services that eCommerce businesses often outsource.
- Customer Services
Salesforce reports that almost half of the polled customers stated they would not do business with companies if they provided poor customer service. Poor customer service is often caused by inefficient service agents who fail to respond quickly to client issues.
Customer concerns generally include product questions, return or exchange requests, order fulfillment issues, and order fulfillment. It is possible to build an internal team with agents who have the knowledge and skills necessary to manage customer service. The negative consequences of a weakening in-house team can have serious implications.
Outsourcing customer service is a great idea. It gives you access to the expertise to complete your service tasks quickly and efficiently. Outsourcing is a great way to save time and improve your eCommerce business. You can then focus on scaling your business cost-effectively.
- Accounting and Bookkeeping
Although they may not directly impact your profit, bookkeeping and accounting are important aspects of your eCommerce business.
Outsourced bookkeeping and accounting have many advantages. You can save a lot of money when outsourcing bookkeeping and accounting. For eCommerce businesses, outsourcing bookkeeping tasks is a practical solution to increasing needs.
Outsourcing also allows you to save time as bookkeeping can be a tedious task. Outsourcing your eCommerce business allows you to focus on core competencies.
- Inventory Management
Your eCommerce business will grow, and so will your inventory. There are more goods to ship and more products to store. It can be difficult to manage a large inventory.
You might consider inventory outsourcing. You will need to partner with an external logistics partner to meet your demands. This includes delivery due and overload inventory.
This function can be outsourced by your eCommerce company to save significant costs. You no longer have to hire staff for inventory operations. You can thus cut back on labor costs and other infrastructure-related expenses.
- Data Entry
It is often difficult for small e-commerce companies to manage their data entry tasks. Data entry tasks include taxing, invoicing, product catalog and gallery management, as well as website updates. These tasks can be tedious and repetitive so outsourcing is an option.
It may not be a good idea to hire full-time employees or build a data entry team if you have a small eCommerce company. Ecommerce businesses can use data entry services to access established technologies and coding professionals with long-standing experience in encoding.
Although eCommerce marketing is crucial to your company’s success, managing it internally might not be the best option. It may be a better option for your eCommerce business to outsource marketing to professionals with more experience in this field, especially if you don’t possess the required skills.
Outsourcing allows you to tap into experts who can create excellent eCommerce marketing strategies. Outsourcing e-commerce marketing activities include copywriting, email marketing, and product photography.
The Bottom Line
Ecommerce shop management is constantly evolving with new technologies, updated regulations, and changing consumer tastes. To ensure success, companies must keep up with the times and focus on creating a connected, innovative, experience-driven service.
You can rest assured that you can focus on your primary goals while an outsourcing provider manages your company’s business processes.