There are over 26 million eCommerce websites.
In 2021, buyers spent around $5.2 trillion on eCommerce purchases, and by 2026, this figure is expected to reach $8.1 trillion.
Contradictory enough—despite the major success of the eCommerce sphere—80% of eCommerce businesses fail.
The harsh truth is, running an online store is anything but simple as it entails wearing many hats.
Causally, eCommerce outsourcing has been booming in recent years.
So much so that 48% of eCommerce businesses not only have in-house staff, but also rely on outsourced eCommerce services to dominate the industry.
The decision between outsourced eCommerce services or running a one-man show determines whether your online store will succeed.
Considering the competition, hiring a professional eCommerce service provider is your best bet if you want to be part of the promising $8.1 trillion instead of the unfavorable 80%!
What is eCommerce Outsourcing?
eCommerce outsourcing is the process of hiring a third-party company to handle all or part of your online sales operations.
This can include anything from managing inventory and fulfillment to creating and maintaining your website and customer service.
IT services (54%), finance (44%), payroll services (32%), and customer service (22%) are among the most outsourced branches.
Coincidentally, in today's competitive market, many eCommerce businesses are finding these are exactly what they need help with to stay ahead of the curve.
While it may seem daunting, outsourcing eCommerce can actually be a very efficient and cost-effective way to run your business.
It is used by some of the biggest players in the industry—Amazon and Alibaba included.
eCommerce outsourcing is a cost-saving solution that boosts efficiency and gives you access to expert knowledge.
This way, you can free up your time and resources to focus on other aspects of your business.
However, it's important to choose the right partner.
If this seems too big of a bite to chew, you can rely on us to find you the best eCommerce outsourcing partner.
eCommerce Outsourcing Best Practices
If you are thinking about outsourcing your eCommerce operations, then you should consider the following tips:
Do Your Research & Find the Right Fit
When you're outsourcing your eCommerce business, do your research and choose a reputable company.
There are a lot of fly-by-night operators out there, so you better find a company that has a good track record and is known for providing quality services.
Before settling on your eCommerce outsourcing partner, you want to ensure they have experience with businesses like yours and they understand your needs.
Sometimes looking at their website and going to a meeting is not enough.
Of course, they’ll try to present themselves in the best light possible and tell you exactly what you want to hear, which can be misleading.
Go online and read the reviews. If others are satisfied with the company’s services, there’s a fair chance you’ll be a good match.
Communicate Clearly
Once you start working with an outsourcing company, communicate openly with them.
Make sure they understand your expectations and that you're clear about what you need from them.
Before anything else, have clearly defined goals.
Talk about the scope of work, the price, and the timeline to avoid any misunderstandings down the road.
Insist on hearing from them regularly.
You can hold meetings and request project updates to ensure everything is going according to plan.
Be Prepared to Adjust
As anyone who has ever outsourced an eCommerce project knows, there are always unforeseen challenges and obstacles, and the project inevitably ends up taking longer and costing more than originally anticipated.
Build flexibility into your outsourcing agreement.
Ensure there are provisions for delays, budget overruns, and scope creep.
Of course, you should also be willing to listen to feedback and make changes accordingly.
If your business has grown and your outsourcing partner has a lot more on their plate than when the contract initially started, rethink your budget and offer to pay more.
Why Outsource eCommerce?
Businesses outsource for different reasons.
Most people decide to outsource eCommerce as it helps:
Save Time
In today's fast-paced world, you have to make the most of your time.
One of the primary benefits of eCommerce outsourcing is just that—it can save you a great deal of time you can use to focus on other aspects of your business.
When you outsource your eCommerce needs, you don’t have to worry about managing inventory, fulfillment, customer service, or any other day-to-day tasks associated with running an online store.
You can choose from a variety of services that can save you time and hassle.
For example, many companies offer order fulfillment services, so you can be at ease knowing packaging and shipping orders are taken care of.
Others can handle customer service, so you can focus on growing your business.
Some companies design and build custom eCommerce websites, so you don't have to lift a finger.
You can even hire consultants and have them develop eCommerce marketing strategies to show how to increase your eCommerce sales and boost your bottom line.
Save Money
The economy is tough and many businesses are looking for ways to save money.
One way to do this is to outsource your eCommerce operations.
By outsourcing, you can save on the cost of hiring and training employees, and you won't have to invest in expensive inventory management software.
eCommerce outsourcing companies can provide you with everything you need to run a successful online store, including website design, order processing, customer service, and shipping.
In most cases, you will only need to pay a monthly fee for these services.
Even better, many outsourced eCommerce providers offer discounts if you choose certain packages, which can further reduce your costs.
Get Expertise
There are a lot of moving parts in running an eCommerce store.
If you want to be a superb eCommerce owner, you have to ensure the customers have everything they need at their fingertips when browsing your products or make purchases online.
Delays are not an option: your customers should be able to ask for information and receive prompt answers.
Don’t let them wait on hold.
Moreover, you need to worry about product descriptions, photos, customer service, shipping, and returns—just to name a few.
If you're trying to do everything yourself, it's easy to feel overwhelmed.
That's why it makes sense to outsource eCommerce to experts.
By working with a team of experienced professionals, you can free up your time to focus on other areas of your business.
Since they’re experts in their field, they can also help you stay up to date with the latest eCommerce trends.
These professionals can help you choose the right product mix for your store, optimize your website for search engines, set up effective marketing campaigns, or do anything else you might be struggling with so you don’t feel overstretched.
Increase Flexibility
If you're looking for a way to boost your business's sales and flexibility, outsourcing eCommerce is a great option to consider.
With someone else taking care of the day-to-day operations of your eCommerce site, you'll be able to respond quickly to changes in the market or customer demand.
When you outsource your eCommerce needs, you can choose from a wide range of services and customize them to meet your specific needs.
You won't have to make any compromises when it comes to running your online store.
By working with a team of eCommerce experts, you can get your store up and running quickly and without any headaches.
And once your store is up and running, you'll be able to take advantage of its flexibility.
With an eCommerce platform, you can easily adjust your product offerings and pricing to meet the changing expectations of your customers.
And, since you have someone else to take care of it all for you, you’re just a call away from adding new features and functionalities as your business grows.
Reduce Risk
eCommerce is a huge and ever-growing industry, with businesses of all sizes vying for a piece of the pie.
But starting an online store can be a risky proposition, especially if you're new to the game.
As mentioned above, a lot goes into launching and running an eCommerce business, from website design and development to product sourcing, fulfillment, and customer service.
If any one of these pieces isn't up to par, it can spell disaster for your business.
When you outsource eCommerce, you won't have all of your eggs in one basket.
And if things do go wrong, you won't be left holding the bag; your eCommerce partner will be there to help you fix the problem and get back on track.
If one aspect of your business isn't doing well, it won't have as big of an impact on your overall business as it would if you were trying to do everything yourself.
Additionally, if something unexpected happens and distracts you, you'll still be able to keep your business running by relying on the services of your eCommerce outsourcing company.
eCommerce Outsourcing Pros & Cons
eCommerce outsourcing is not a one-size-fits-all solution. Choosing to outsource depends on the size of your business, the scope of work, your needs, and expectations.
Consider the following before making a decision:
eCommerce Outsourcing Pros
- Allows you to focus on the core business
- Enables you to focus on what you do best
- Provides reliable support
- Gives you access to expertise and unique resources
- Supports steady business growth
eCommerce Outsourcing Cons
- Less control
- Communication challenges
Outsourcing: Key Takeaways
The best way to improve your eCommerce business is to take advantage of the knowledge and experience of others.
When you choose to outsource your eCommerce needs, you can enjoy the benefits of having professionals on hand to take care of all the details for you.
From design and implementation to marketing and customer service, there’s an eCommerce expert out there willing to provide support throughout every stage of your eCommerce business operations.
Source: eCommerce Outsourcing: How to Choose the Right Partner | DesignRush
