Why Online Retailers Choose Outsourcing

We live in a world where you don’t need to ever leave your house to shop. 

COVID-19 proved that much. 

As a result, almost every business nowadays has an online store. But being successful in your niche is about more than just having great products. You need to learn how to manage a complex, often fast-moving digital platform.  

It sounds intimidating, we get it. 

But it doesn’t have to be. 

Ecommerce outsourcing can help tremendously. In fact, many online retailers are already using this business strategy. By delegating key functions like software development, customer support, and more, companies stay agile, cut costs, and focus on their products and growth. 

Interested? 

In this guide, we’ll explore ecommerce outsourcing and how it can transform your business for the better. 

Let’s dive in: 

Understanding Ecommerce Outsourcing and Its Benefits 

Outsourcing itself is the process of delegating various tasks and operations of your business to third-party service providers. In terms of ecommerce, that means trusting an expert to handle tasks such as website development, customer service, cybersecurity, etc. 

How does this benefit online retailers? 

Well, the most obvious advantage is saving time. While your outsourcing partner handles the parts of the business you’ve trusted them with, you’ll have more time to focus on growing and developing your product or service catalogue. In addition, outsourcing is proved to accelerate innovation. 

Unfortunately, there are a lot of misconceptions surrounding this business strategy. However, most retailers that have trusted externals say they have managed to: 

• Cut costs – hiring and maintaining an in-house team for every aspect of an online business can be expensive, requiring salaries, benefits, office space, and software tools. Outsourcing eliminates these overhead costs. 

• Increase efficiency and scalability – partnering with external experts allows businesses to offload repetitive or highly technical tasks, ensuring smoother operations. It also enables them to scale ecommerce operations without worrying about infrastructure limitations or hiring additional staff. 

• Access industry experts – you’ll get to work with professionals with years of experience, ensuring that your company receive top-tier services. You’ll also be able to choose from a wider talent pool, in case you need additional help. 

• Get their products to market faster – ecommerce website and app development outsourcing guarantees you’ll get your products and services to market without unnecessary delays. 

• Forget about maintenance – software development outsourcing helps businesses keep their websites and apps up to date, ensuring smooth functionality, security patches, and performance enhancements. Look for partners that have hypercare as part of their offer. It should be one of your main criteria.  

Sounds great, doesn’t it? 

Many retailers also choose to outsource the development of AI chatbots and their payment processing software. This leaves them even more time to focus on their core business functions. 

Another thing you need to know: 

There are different types of outsourcing delivery models. Each has its advantages and can be beneficial in various situations. Most online retailers choose one or two to kickstart their business.  

Let’s see which one fits your needs: 

Types of Outsourcing Delivery Models and Which Is Best for You 

Ecommerce businesses looking to hire external experts often face a critical decision:  

Which outsourcing model is the best fit?

The right choice depends on your long-term goals, project complexity, and budget constraints. Make sure to have your needs clearly outlined before making up your mind. 

Without further ado, here are the three most common outsourcing models: 

• Staff augmentation– enables businesses to temporarily expand their in-house teams with external talent. Instead of hiring full-time employees, online retailers can bring in developers, designers, or IT specialists on a flexible, as-needed basis. This model is perfect if you already have an internal tech team but need additional expertise for a specific project. For example, ecommerce app development outsourcing. 

• Fixed-cost projects – allows you to define a project scope, deadline, and budget upfront. The outsourcing provider then delivers the completed task within those constraints. It’s perfect for when you need one-time assistance for things such as a website redesign or mobile app launch. However, it requires precise planning, as changes to the scope can lead to additional costs. 
• Dedicated development teams – you get a whole team that works exclusively on your company’s projects. This model is similar to having an in-house team, but the experts are employed by the outsourcing provider. This is the best option for businesses that need ongoing software development outsourcing for ecommerce or have complex, evolving needs. 

Interested in the service, but still not sure which is the best software development outsourcing model for you? 

Contact us! 

We at Expert Allies would love to hear all about your company and suggest the best option for your needs. 

There’s a suitable model for all types of businesses. Let us help you find yours! 

Wrap Up 

Let’s face it: 

Managing every aspect of an online business in-house can be overwhelming, costly, and inefficient.  

That’s why many online retailers turn to ecommerce outsourcing solutions to optimize their operations, reduce costs, and enhance customer experiences. By partnering with the best external partners, you’ll stay agile, competitive, and ready to meet the evolving demands of the digital marketplace. 

Want to enter the next chapter of your business’ growth? 

Your Allies are just a call away, waiting to embark on this journey with you. 

FAQ 

What is outsourcing in ecommerce? 

Outsourcing in ecommerce is the practice of hiring external experts to handle tasks instead of doing them in-house. For example, website development, customer service, marketing, and logistics. It helps online retailers reduce costs, increase efficiency, and scale operations. In addition, it frees time for companies to focus on growth while ensuring a seamless shopping experience for customers. 

What is outsourcing example? 

A good example of ecommerce outsourcing is an online store that hires a third-party company to handle customer support instead of managing an in-house team. Another example is outsourcing website development to experts that build and maintain the store’s platform.  

Is Amazon an example of outsourcing? 

Yes, Amazon is a great example of outsourcing. It relies on third-party companies for services like customer support, logistics, and IT infrastructure. The giant outsources its fulfillment operations through Fulfillment by Amazon (FBA). Sellers use it to store products in Amazon warehouses while the company handles packing and shipping. It also outsources cloud computing services to external providers, having the option to do it in-house.