Ecommerce Customer Service Outsourcing: Is It Effective or Not?

Ecommerce Customer Service Outsourcing: Is It Effective or Not?

Ecommerce Customer Service Outsourcing: Is It Effective or Not?

Outsourcing is the process through which an organization recruits another organization or team of people to fulfill some tasks (usually, secondary business activities) and increase staff. Nowadays, outsourcing eCommerce is a common practice in the business world.

Most companies that use such services do that in order to cut costs in the first turn. Of course, outsourcing offers more privileges. Most often, start-ups, small, and medium businesses hire outsourced teams as big corporations that can afford to recruit and support in-house teams. Outsourcing minimizes risks. The main types of activities that companies tend to outsource:

  • Customer support
  • Tech (IT) support
  • Ecommerce data entry
  • Web development
  • Web design
  • Office management
  • Operation services
  • PR
  • Content management and copywriting

Some outsourced staff is responsible for procuring equipment and tools for the company.

Things to Know before Digging Deeper into Ecommerce Outsourcing

Before we have a closer look at the outsourcing for e-business, we would like to list eCommerce pros and cons. Thanks to the development of technologies and going online, many companies became more viable and profitable.

  • Better customer insights thanks to in-depth analytics

No matter which option you choose to direct your users to the official company website, it is possible to define the amount of traffic and conversion rates easily. There are many tools for tracking and analytics on the web today. Motivating the guests to attend your site is possible through many ways like search engine optimization (SEO), price-per-click (PPC) ads, social media platforms, and more. It is possible to find free online tools that will help you to detect the right buzzwords or keywords. However, paid software or experts can be more effective.

Reduced response time

In e-commerce, it takes less to respond to the latest market trends as well as customer demands. Through generating promotions and offers on-the-fly, it is possible to boost sales significantly.

  • Boosted revenues (with continuous gratification)

Sure, if your business is about selling digital goods, it will take some time to ship them to the customers. However, online companies that offer services and digital products can deliver them within seconds. This tactic assists with increasing profitability a lot as people hate to wait.

  • Access to the expanded market

Traditional businesses belong to smaller marketing groups and limited demographics, unlike e-commerce. It is possible to reach the client at any point of the world whenever you need it and offer your good or service. Plus, shopping on-the-go is an excellent opportunity for e-businesses now.

  • Users might have some concerns about privacy and safety of info
  • The extra cost of managing and supporting an online store
  • Lack of in-store engagement and live conversations that are still considered effective

We believe that the benefits of e-business overweigh the cons of e-commerce. Still, it is up to you to decide whether to go online and outsource some teams.

Inhouse or Outsource Ecommerce Support: Which Is the Right Choice?

In-house teams still have some benefits when treated wisely. First of all, it is an opportunity to fully customize the team based on your business needs and goals. There is no need for additional options to bog down the operations. Second, this is a type of personnel that you always have by your side and can use for any urgent or immediate assignments. Being in the same time zone might be a great plus.

Inhouse or Outsource Ecommerce Support:

Lastly, having an in-house support team or another department means controlling your costs entirely. Do not expect an immediate return in the case of outsourced groups! At the same time, the cons of in-house staff are apparent:

  • It is rather time-consuming
  • It is often not cost-effective
  • Problems with security
  • Lack of expertise

Outsourcing online business is an excellent idea if you wish to minimize labor expenses. Besides, outsourced teams are more tech-savvy. Here are the benefits that this solution offers:

  • Exposure to the recent technological solutions

The outsourcing agencies spend most of their time exploring the latest trends in software and web development. It makes it possible for them to optimize the tech-based on your business needs and preferences. It is not necessary to be a flourished company to access recent innovations. Often, the prices of the tools that outsourced teams use are included in the total fee you pay.

  • Implementing marketing strategies

Just like in the section above, outsourced teams stay in trend, and not only with tech advancements, but marketing approaches. They quickly analyze the target industry, discovering new ideas for your products or services. They can recommend adding new features or developing a brand new good.

  • Reducing the company’s cost

Your labor and operational costs will go down once you pick to hire an outsourced team. There is no need to pay for a premise, resources, and individual time that each employee spends on your tasks. It becomes possible to scale services up or down instead of recruiting a workforce all the time.

  • Access to better experts

If you choose to outsource, you automatically obtain access to the greater pool of experts. Highly skilled developers, designers, support reps, and writers from Eastern Europe in particular grantee cost efficiency for your business.

Whether to Choose Ecommerce Outsource or Not: Verdict

Not all roles are right for outsourcing, so you should divide the business activities into core and secondary from the very beginning. Though defining and properly planning the budget and specific requirements of the business project, one can maximize the efficiency of both in-house and outsourced teams. Both approaches have pros and cons though outsourcing staff appears to be a more popular choice for small and medium businesses nowadays. All in all, it will be a kind of improvement for some companies. Weigh all the pros and cons once again before making the final decision!


Maya Momotok

Reviewed by Maya Momotok
CEO and cofounder of Wow24-7

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