What eCommerce Services Can a Small Businesses Outsource?
The need for outsourcing your eCommerce services grows as your business starts to prosper and you realize that you cannot manage everything simultaneously. Read on to learn about some of the top eCommerce outsourcing benefits.
The Key eCommerce Outsourcing Benefits
There are many advantages when eCommerce services are outsourced. In no order of importance, we have listed key outsourcing benefits:-
Limited investment required
When the eCommerce services are outsourced, the business owner saves money. The business owner does not have to invest in setting up the infrastructure to run the eCommerce business. Research study has proven that when eCommerce services like inventory management, warehousing technology implementation, fulfillment, business infrastructure, and customer support are outsourced to a reliable outsourcing partner, the business owner will save about 85 percent on upfront costs.
Furthermore, suppose an in-house team is established to manage the eCommerce activities. In that case, the business owner will have to invest in setting up a team, train the team, provide a monthly salary and incur other costs. Besides this, the eCommerce business owner will also have to incur costs to ensure that the setup is up and running. However, when the eCommerce activities of the business are outsourced, a sizable investment is saved on platform implementation, web development, systems integration, and logistics. A small investment is required when the services are outsourced to a reliable partner or a service provider. The cost factor is one of the primary reasons why many eCommerce business owners are outsourcing services.
Access to the best talent and infrastructure
eCommerce service providers are experienced in providing services. They are armed with a skilled workforce and are equipped with the latest technology to provide eCommerce services. When you outsource the eCommerce services of your business, you can be assured that you have access to the best talent and infrastructure. It can help you reach out to markets that you wish to target. An eCommerce service provider will provide business owners software development, web designing, operation services, and other IT-related solutions to help achieve business goals. The outsourcing companies are well aware of the trends and can optimize them according to your target market requirements. They can achieve it by using the best and latest technology available worldwide. This can especially help the medium and small-sized Ecommerce businesses, which usually lack access to the best technologies that most successful Ecommerce businesses are using.
Increase business production
As a single eCommerce business venture, you are unlikely to accomplish the economies of scale that eCommerce service providers offer. It is owing to the sheer volume of business that the latter conduct with technology partners, carriers, shippers, and packaging suppliers. You will not have access to the best rates in different aspects by doing everything yourself. These include web servers, payment processing, tax solutions, web developers, warehousing, and shipping.
Furthermore, it is also highly improbable to see economies of expertise. Your core competencies are most likely not to include product fulfillment, eCommerce conversion, managing subscriptions, global localization, and other complex details of global eCommerce services.
It means that you will not be very efficient at managing orders, maintaining your supply chain, and swiftly fixing problems as they surface. Thus, a feasible solution is to outsource the eCommerce activity of your business. It is proven that business owners, especially the small and the medium ones, have recorded increased business productivity. It is one of the reasons why business owners are considering outsourcing the eCommerce services of their business.
Focus on core activities and business expansion
When the eCommerce services of the business are outsourced, it gives the business owner enough time to manage the core activities of the business. A section of business owners states that outsourcing the eCommerce activities of their business helps, especially when expanding the business.
A word of caution to business owners who are considering outsourcing the eCommerce services of their business is to not be in a hurry of any kind to commit to services provided by an outsourcing service provider. Also, before you sign up for eCommerce outsourcing services, you must research the service provider. And you must make sure that you are partnering with a reliable service provider. You can take a closer look at services provided by Vserve solution. Vserve is a one-stop solution provider for all your eCommerce service needs.
Top 3 Services Small Ecommerce Businesses Typically Outsources
In the next section of our blog, we have highlighted what services small eCommerce business owners outsource?
It is important for small business owners to understand when to step away from day-to-day operations. Outsourcing the services of your company can make it happen. Follow along to find out what services you can outsource for your eCommerce business.
Website Development and Maintenance
Small ecommerce businesses often lack the technical skills to build and maintain a robust and user-friendly website. Outsourcing website development to a professional web development agency or freelancer allows them to have a well-designed, responsive, and secure website. These experts can also ensure that the website is optimized for search engines (SEO), which is crucial for attracting organic traffic. Additionally, outsourcing website maintenance ensures that the site stays updated with the latest security patches and features, reducing the risk of downtime and security breaches.
Digital Marketing and SEO
To compete in the crowded online marketplace, small ecommerce businesses need effective digital marketing strategies. Many outsource their digital marketing efforts, including search engine optimization (SEO), pay-per-click (PPC) advertising, social media management, and email marketing.
Digital marketing agencies have the expertise and tools to create and execute marketing campaigns that drive traffic, increase brand awareness, and generate sales. Outsourcing these services allows small businesses to benefit from the latest marketing trends and data-driven insights without needing an in-house marketing team.
Order Management
Small ecommerce businesses often outsource order management services to third-party fulfillment centers or order processing companies. These service providers specialize in efficiently handling the entire order fulfillment process, from receiving orders and inventory management to picking, packing, and shipping.
Outsourcing order management can help small businesses scale their operations without significant warehouse space, staff, and logistics investments. It also ensures that orders are processed accurately and delivered on time, enhancing the overall customer experience.
Product Sourcing
Small ecommerce businesses may outsource product sourcing to suppliers, manufacturers, or wholesalers. Outsourcing this aspect of their operations allows them to access a wider range of products without the burden of managing inventory or manufacturing processes in-house.
By partnering with reliable suppliers, businesses can quickly maintain a diverse product catalog, respond to market trends, and reduce the risks associated with overstocking or understocking inventory. Outsourcing product sourcing also frees up valuable time and resources for business owners to focus on marketing, customer service, and growth strategies.
If outsourcing the services of your eCommerce business is on your mind, you can consider partnering with Vserve eBusiness solution.
