Business, Management, News

8 Benefits of Outsourcing in eCommerce

eCommerce displayed on laptop and tablet

The e-commerce industry witnessed a boom following the COVID-19 pandemic. As a result, it is a lucrative opportunity for previously brick-and-mortar businesses and new entrepreneurs to leverage the online space for increased revenue and growth. In addition, eCommerce is beneficial in creating a new revenue stream that can tackle market disruptions in physical retail. 

Whether running an eCommerce business or planning to start one, order management, operations, and product inventory are crucial business tasks to look forward to. Specifically, deciding between outsourcing these business tasks for increased productivity or creating an in-house team. Such decisions depend upon cost management, budgeting, resource availability and allocation, and risk management. 

Outsourcing operational management may seem cost-effective and practical depending on the business and its brand strategy. But before you decide, consider the following benefits: 

1. Saves money

One of the most significant factors behind outsourcing is its cost-effectiveness. When creating an in-house team, you need to hire new employees, set a budget for their salaries and fringe benefits, and invest in training. In addition, you may have to rent more space to accommodate your workforce, which can increase business expenses. On the other hand, delegating too many tasks to current employees may reduce productivity and efficiency and hamper revenue. 

2. Saves time

Along with cost-effectiveness, outsourcing helps businesses save time otherwise spent training the existing workforce to take up new and low-priority tasks. By outsourcing IT support for your e-commerce business, your in-house team can devote their time and efforts to consumer and market research, digital marketing, brand outreach, and other high-value tasks to increase brand activity. For Singapore-based businesses, Win-Pro offers stellar IT systems to help manage your eCommerce brand while reducing operational costs and improving growth prospects. 

3. Focus on your primary operation

Creating an eCommerce division may shift focus from your business’s core element, especially if your business’s core lies in some other service. Managing an eCommerce division includes warehouse management, product packaging, machinery or equipment, supply chain, and order management. You may not have enough experienced employees to handle the intricate responsibilities of eCommerce. Outsourcing can help avoid loss of productivity and revenue in your business by shifting focus on what’s important. For most companies, the thought of creating an eCommerce division may be exciting and profitable until they realize the difficulties of managing it. 

4. Flexible hiring for new employees

As an eCommerce brand, you may need extra help for a short-term project like creating SEO-optimized product descriptions for new products. Given the in-house team is focused on managing the inventory and supply chain of the latest products, outsourcing areas like copywriting can prevent overburdening them. On top of writing descriptions, you need someone to conduct research for SEO, and a freelance copywriter can help you with this short-term project. Instead of hiring a full-time copywriter, outsourcing this one-time task to an independent contractor will save time and money in recruiting and training new employees. 

5. Less Capital Investment

Outsourcing your e-commerce division helps decrease the need to invest in new capital. For example, an eCommerce business requires managing inventory, warehousing, product fulfillment, and customer support. If you hire an in-house team to perform these tasks, you may need significant investment in project management tools and recruitment costs. In addition, the hassle of supervising it can divert attention from other high-value tasks. However, with an outsourcing partner, all you need is an initial investment. They would have the team, technology, warehouse, and systems to kick-start your business. 

6. Increased productivity 

An outsourcing partner for eCommerce can help you scale by connecting you with industry-leading service providers. If you’re new to the market, acquiring the best rates for web developers, fraud protection, packaging, warehousing, shipping, payment processing, and web servers can be challenging. Also, the current workforce may not be competent in all the critical areas for successfully running an eCommerce business. In addition, global localization and e-commerce conversion are slightly complex and require efficient management. Outsourcing these tasks to an eCommerce provider ensures a streamlined supply chain.

7. Risk management 

Outsourcing your e-commerce business also helps reduce business risks and manage liabilities. For example, choosing an experienced e-commerce partner with a proven track record in supply chain management, product fulfillment, and IT systems would be best. Failure in either of these sectors could jeopardize your brand’s image and influence customers. By allowing an e-commerce provider to handle the core aspects of your business, you can manage such risks and focus on creating and launching innovative products.

8. Bring about innovation

By outsourcing your high-value tasks to an e-commerce provider, you are not restricted by the physical demands of running your business. It can leave more room for revamping your brand strategy as and when needed, thus bringing about innovation. Innovation comes in many forms, like capturing a new market, researching for and releasing new products, and launching promotions. Outsourcing also helps tackle competition since you would have more room for focusing on innovating your business. 

Conclusion

E-commerce has become complex due to globalization, and modern consumers make more educated and informed buying decisions than before. Marketing your eCommerce brand is also tricky now, given the new strategies and the rise in competition. Traditional forms of advertisement have plunged, and digital marketing is still evolving. Marketing and promoting your brand and business online requires investment and a unique brand strategy that can make or break your business. If you are not ready to shift the burden to focus on high-value tasks, it may become difficult to conquer the market.


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