One of the most important aspects of any eCommerce business is knowing when and how to outsource. It can be a difficult decision for business owners, as it can be tough to give up control of certain aspects of the business. However, outsourcing can be a great way to save time and money, as well as improve the overall quality of your products or services. In this article, we’ll cover everything you need to know about outsourcing for your eCommerce business, from the pros and cons to the best practices.
What is E-commerce outsourcing?
eCommerce outsourcing is the process of hiring a third-party company to handle all or part of your online store’s operations. This can include anything from website design and development to product sourcing, customer service, and order fulfillment.
There are many benefits to outsourcing your eCommerce store, including cost savings, increased efficiency, and access to expert knowledge. eCommerce outsourcing can be a great way to scale your business faster. However, it’s important to choose the right partner to avoid any potential problems.
How Does eCommerce Outsourcing Help Grow Your Business?
In the rapidly changing world of online retail, it can be difficult to keep up with the latest trends. One way to stay ahead of the curve is to outsource certain aspects of your eCommerce business. This can free up your time to focus on other areas of your business, and it can also help you to tap into new markets.
Let’s explore more in-depth how working with a partner who has experience in the eCommerce industry can benefit your online business:
1. Bring down the costs
eCommerce outsourcing reduces the need for internal staff to handle tasks related to eCommerce. This can free up resources that can be used elsewhere within the company.
Additionally, eCommerce outsourcing can help to reduce the costs of inventory and shipping. By using an outsourced company, businesses can take advantage of their economies of scale and often get better rates on these services.
And last, eCommerce outsourcing can help to reduce the overall cost of website development and maintenance. By using an experienced and reputable company, businesses can avoid the costly mistakes that can often be made when developing and maintaining a website internally.
2. Leverage the latest technology – Cloud
eCommerce outsourcing can help you to improve your online business bottom line by providing you with access to the latest technology. For example, by using cloud-based technology, you can reduce your costs and improve your efficiency.
Cloud-based technology can help to reduce the costs of an online store by making it easier to scale the business up or down as needed. This ensures that the resources are used as efficiently as possible. It can also improve the security of an online store by providing a more secure environment for data storage and processing.
More than that, outsourcing your eCommerce requirements guarantees that your online store is always up-to-date with the latest trends.
3. Reduce data storage and handling
Outsourcing eCommerce operations can help to reduce data storage and handling as well as improve online store performance. When you outsource these operations, you are able to store data on a remote server which can be accessed by authorized personnel only. It also helps you to save money on hosting fees and reduce the amount of time you need to spend managing your data. All of this help to keep your online store data secure and also reduce the amount of time needed to manage it.
4. Get work done seamlessly
When you outsource your eCommerce needs, you are essentially hiring a company to take care of all the technical aspects of setting up and running an online store. This can include everything from designing and building the store to managing inventory and shipping orders. By outsourcing these tasks, you can focus on other aspects of running your business and get work done a lot faster and more efficiently than before.
5. Focus on your core and strengths
When you outsource your eCommerce, you can focus on your company’s core competencies and strengths. This allows you to allocate more resources to these areas, which can improve your competitive advantage.
Common eCommerce Tasks to Outsource
If you’re running an eCommerce business, chances are you’re wearing a lot of hats. From product sourcing and fulfillment to customer service and marketing, it can be tough to do it all yourself. But as your business grows, you’ll likely need to start outsourcing some of these tasks. Check out this list of common eCommerce tasks that can be outsourced to help you focus on growing your business:
Marketing
One of the most common eCommerce tasks that can be outsourced is marketing. This is because marketing can be a very time-consuming and expensive task, especially if you are trying to do it all yourself. There are many different marketing strategies that you can outsource, such as social media marketing, email marketing, and even search engine optimization.
Website design and development
A well-designed website is essential for any online business, and it can be a complex and time-consuming task. Fortunately, there are many companies that specialize in website design and development, and they can create a custom website that meets your specific needs and requirements.
When outsourcing website design and development, it is important to choose a company that has experience in creating eCommerce websites. You should also ask for samples of their work, and get a detailed quote that includes all of the costs involved. Once you have found a company that you are happy with, you can focus on other aspects of your business while they take care of the website.
Customer service
There are a number of customer service tasks that can be outsourced in an eCommerce setting. These can include tasks such as handling customer inquiries, processing orders, and managing returns. By outsourcing these tasks, businesses can free up time and resources to focus on other aspects of their operation. Adding to that the pool of skilled professionals who can provide a high level of service that the business can tap into.
Accounting and Bookkeeping
Accounting can be very time-consuming and quite complex. However, there are many companies that offer such services, so you should be able to find a company that can provide you with what you need.
You will want to ask about the different types of services that the company offers. For instance, you may want to know about tax preparation.
Graphic design & video
As your online shop or eCommerce business grows, you will likely find yourself with less and less time to devote to design and video tasks. Fortunately, these are both tasks that can be easily outsourced to professionals.
There are many graphic designers and video editors who specialize in creating visuals for online businesses. They will be able to quickly and easily create engaging designs and videos that will help promote your products or services.
Outsourcing design and video tasks will ensure that your visuals are of the highest quality, which will help to build trust and credibility with your customers.
Inventory management
There are many benefits to outsourcing inventory management for online shops and eCommerce businesses. It can help to reduce costs associated with inventory management, such as storage and shipping costs. Also, outsourcing the task to professionals – assuming you had just started your online shop or don’t have enough experience of your own – ensures that inventory levels are maintained at an optimal level, which can help to avoid stock-outs and lost sales.
Data entry
Data entry can easily be done by someone who is not physically present in the same location as the business owner. Even if the person in charge is not familiar with the products or services that the business offers. This makes it easy to outsource to save time that can be spent better doing a more important task.
Step-by-step guide on eCommerce outsourcing
ECommerce outsourcing can be a great way to save time and money. But it can also be a daunting task, especially if you’re not sure where to start. Here is how to find the right eCommerce outsourcing partner for your business:
1. Determine if outsourcing is the right choice
You will need to consider a variety of factors, including your budget, your business goals, the skills of your team…etc, and compare this to the services and costs of outsourcing.
Some businesses are more suited to outsourcing than others. For example, businesses that require a lot of customer service or data entry may be better off outsourcing these tasks.
If you are unsure whether or not outsourcing is the right choice for your business, you may want to consult with a business consultant or a marketing expert.
2. Identify tasks to outsource
Any tasks that you feel take too long to complete or distract you from taking care of the core functions of your business must be outsourced. Once you have a good idea of which tasks are draining your time and energy, you can start to look for someone to delegate those tasks to. This is especially advised to eCommerce starters who have to give their all and focus on their store growth
3. Decide how many freelancers you need
The number of freelancers you need for your eCommerce outsourcing will depend on the size and complexity of your eCommerce operation, the number of products you sell, and the level of customer service you require.
Some eCommerce businesses have been able to get by with a single freelancer, while others have needed to hire an entire team to manage their operations.
Once you assess your business needs, contact a few freelancing platforms to get quotes from freelancers who are qualified to handle your specific needs.
4. Correctly describe your tasks in the job description
When writing a job description for an eCommerce outsourcing position, be sure to include a list of all required tasks, as well as any desired skills or experience. Include a brief description of the company and its eCommerce platform, and explain what the successful candidate will be responsible for. Be clear and concise in your language, and avoid using jargon or technical terms that may not be familiar to everyone.
5. Be cautious and proactive in hiring
When hiring an eCommerce outsourcing company, it is important to be cautious and proactive. There are a few key things to look for when choosing an eCommerce outsourcing company:
- Make sure the freelancer/company has a good reputation.
- Research the freelancer/company thoroughly.
- Be sure to ask for references.
- Make sure the freelancer/company is bonded and insured.
6. Run a trial
There are a few things to consider when running a trial for eCommerce outsourcing:
- Make sure you have a clear idea of what tasks you want to delegate and what you expect from the outsourcing party.
- Communicate your expectations clearly.
- Set a timeframe for the trial period.
- Evaluate the results of the trial period and decide whether or not to continue working with the outsourcing party.
7. Build trust and connection with freelancers/outsourcing companies
There are a few key things you can do to build trust and connection with freelancers/outsourcing companies for your eCommerce outsourcing:
- Define your project scope and objectives clearly from the outset. The more specific you can be, the better. This will help the freelancer/outsourcing company understand exactly what you’re looking for, and ensure that they are on the same page as you from the start.
- Be responsive to communication from the freelancer/outsourcing company. If they have questions or need clarification on anything, make sure to reply promptly. This will show that you’re engaged with the project and invested in its success.
- Pay invoices promptly. This shows that you value the freelancer/outsourcing company’s work and appreciate their efforts. It will also help to build a good rapport and relationship going forward.
Final thoughts
Outsourcing can be a great way to improve the overall quality of your products or services while saving time and money.
However, it is important to weigh the pros and cons carefully before making a decision.
Be sure to consider the best practices outlined in this article to make the most informed choice for your eCommerce business.
