Seven Ways BPO Helps Phoenix E-commerce Businesses Expand Global Reach

Phoenix businesses are thriving in e-commerce, with local entrepreneurs adapting to online shopping. Partnering with BPO companies helps them reach international markets, aiding global expansion. The article highlights trends and the importance of market growth for e-commerce.
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The e-commerce industry continues to establish a solid presence in the ever-evolving digital society. Businesses in Phoenix adapt to this new approach to shopping, promoting a rise in local e-commerce entrepreneurs.

Reaching international audiences has become a shared goal among e-commerce businesses. Partnering with a business process outsourcing (BPO) company in Phoenix can be a strategic approach to this initiative. 

This article discusses the rise of online shopping and how e-commerce BPO can propel businesses toward global expansion. It also outlines the importance of reaching new markets.

Understanding the Shift in the Online Shopping Experience

Understanding the Shift in the Online Shopping Experience

The e-commerce sector has seen rapid expansion in recent years. To better understand how outsourcing can help Phoenix-based online retailers expand globally, let us first discuss this industry’s rise.

E-commerce Establishes Its Presence During the Pandemic

At the height of the pandemic, consumers turned to online shopping to avoid going to physical stores. Thus, e-commerce has further accelerated. The United States Census Bureau reports that the country’s 2020 online sales increased by 43%.

This expansion changed how consumers purchased items online, leading to new e-commerce trends. Aside from the shift to online shopping, here are a few other ways the pandemic changed the virtual retail industry:

  • Heightened use of social media for product discovery and purchasing
  • Increasing demand for combined online and offline shopping
  • The rising popularity of new e-commerce platforms, such as Shopify and TikTok

E-commerce Continues to Grow in the Post-pandemic Society

This new approach to shopping continued even after the pandemic. A Statista report estimates global retail e-commerce sales will exceed $6.3 trillion in sales in 2024.

Thus, we can safely assume that the pandemic had a lasting impact on the global e-commerce landscape. As this industry rockets, cities and societies adapt to the shift in the shopping experience.

Greater Phoenix emerges as a large and thriving hub for this sector. Its access to vast markets, trade programs, and reliable infrastructure make it a favorable place for online retailers.

With the global marketplace becoming increasingly interconnected, e-commerce shops in Phoenix are eager to expand their reach beyond domestic borders. Thus, many online retailers turn to business process outsourcing.

Seven Ways BPO Helps Phoenix E-commerce Grow Globally

Seven Ways BPO Helps Phoenix E-commerce Grow Globally

What is BPO? This approach involves delegating non-core functions to an external service vendor. The primary objective of this practice is to help companies enhance operational efficiency while reducing costs. 

Outsourcing has many types, but the best models for global expansions are offshoring and nearshoring. Offshoring involves working with a BPO team from a distant location, while nearshoring entails delegating operations to a service provider in a nearby country. Partnering with a multinational company also suffices. 

These outsourcing models let you leverage a global talent pool and state-of-the-art technologies to streamline tasks. BPO trends and predictions show that artificial intelligence (AI), cloud computing, and automation are the leading digital tools in the industry.

These benefits make the practice widespread among businesses of all industries and sizes. Grand View Research shows the global BPO market reached over $280.64 billion in 2023. The organization predicts the sector will grow by 9.4% until 2030.

So, how exactly does partnering with a BPO provider help your Phoenix e-commerce business expand globally? Let us discuss each point.

1. Cost-effective Solutions

Soaring compensation costs and prices of consumer goods and services in Phoenix make scaling challenging, even more so for global expansions. Outsourcing makes market expansion easier by allowing you to access specialized resources without incurring additional costs.

Here are a few ways e-commerce outsourcing helps you save:

  • Reduced hiring costs. Hiring experts in new markets can be expensive and complex. Outsourcing lets you acquire talent easily and economically. BPO providers cover hiring processes, from job postings to training. For example, partnering with a provider operating in the Philippines can cut labor costs by 70% due to wage differences.
  • Fewer technological investments. As mentioned, BPO providers employ the latest tools and software to help their clients streamline tasks and achieve global expansion. This access prevents costly upfront investments.
  • Eliminated overhead. Outsourcing often entails working with remote professionals. Thus, you do not need to pay office rent and equipment costs. This strategy also helps you save on utilities such as heating, ventilation, air conditioning, water, and electricity systems.

2. Better Access to Global Market Insights

Outsourcing providers typically operate in multiple countries. They have the knowledge, talent, and connections to help you with market research and analysis. These benefits allow you to make more informed decisions about expansions and product developments in other countries. 

Below are several ways e-commerce BPO providers can help you gain global market insights:

  • Cultural expertise. Outsourcing teams are well-versed in different cultures, which is crucial to global market expansion. It allows e-commerce businesses to tailor products and marketing strategies to resonate with locals. Understanding customs, preferences, and communication styles prevents cultural missteps and strengthens connections.
  • Market research tools. Sophisticated data analytics tools and artificial intelligence (AI) can provide in-depth insights into global consumer trends, market potential, and competitive landscapes. These tools help identify untapped opportunities in new markets by analyzing online surveys, social media, and e-commerce platforms. 
  • Network of partners. Many service providers have established partnerships with regional experts. This network provides even more specialized insight and knowledge into the challenges and opportunities of expanding into new markets. Access to such benefits allows BPO providers to ease the process of global expansion.

3. Multilingual Support and Translation Services

A multinational e-commerce outsourcing partner can provide you with a multilingual team. It also has the necessary tools and software to help you translate your online business’s branding into other languages. 

Let us discuss each of these benefits in detail:

  • Linguistic expertise. Most BPO teams are multilingual. They can translate and adapt website content, marketing materials, and customer support interactions into multiple languages. Such a support team helps ensure your brand message’s clarity, consistency, and cultural aptness across regions.
  • Website localization and translation tools. Cloud-based platforms streamline adapting websites, marketing materials, and customer interactions to different languages and cultures. They provide a central repository for managing localized content, including source files, translations, and review notes, allowing easy access and collaboration.

4. Local E-commerce Best Practices

BPO teams and their technologies help you quickly establish online shopping platforms and payment systems in other countries. Here are specific ways outsourcing gives you an advantage in expanding your e-commerce business:

  • Industry knowledge and skills. If your online shop plans to expand into emerging markets, you must know the local payment systems, e-commerce platforms, and their regulations. BPO providers have the right talent to help you navigate the e-commerce scene in other areas, supporting your global expansion efforts.
  • Automated cross-border payment processing. Using AI for payment processing reduces friction and ensures seamless experiences for international customers. Its algorithms can analyze real-time market data and exchange rates, allowing you to update currency conversions and provide transparent pricing.

5. Round-the-clock Support

One of the many advantages of outsourcing is that it allows you to provide continuous support services. Due to this specific benefit, e-commerce customer service outsourcing is common among businesses in the industry. It allows them to accommodate consumers in different time zones through:

  • 24/7 agents. Be it customer support services or internal help desks, BPO teams can promptly respond to concerns and issues. A support staff that operates beyond business hours ensures issue resolution for consumers in other countries, enhancing satisfaction. It also prevents business disruptions through early risk management.
  • AI-powered chatbots. BPO providers can help you develop automated messages for your global market and audience expansion. With 24/7 support agents, this tool provides round-the-clock, multilingual services. It offers consumers real-time assistance and addresses concerns in their preferred time and language with cloud technology.

6. Stringent Risk Mitigation and Compliance Policies

Local industry regulations are one factor that makes global expansion challenging for businesses. E-commerce outsourcing is crucial in helping your Phoenix-based online shop avoid noncompliance violations as it expands to international markets. 

The provider shares the responsibility for guaranteeing data privacy. When writing a service-level agreement (SLA) for your BPO partner, customer privacy is one of the most critical terms you must set.

Service providers can offer valuable support in the following areas:

  • Navigating complex regulatory landscapes. E-commerce outsourcing teams are well-versed in international trade, data privacy, and consumer protection laws. They deeply understand local codes regulating online businesses that operate in certain countries. 
  • Managing tax and customs compliance. Outsourcing financial tasks, such as tax and customs management, helps you manage requirements across different jurisdictions. BPO teams can handle customs clearance procedures, documentation, and tax calculations and payments.
  • Protecting intellectual property and data. BPO providers implement robust data privacy measures and ensure their infrastructures are secure for global expansion. This step helps your e-commerce business safeguard sensitive customer information, intellectual property, and trade secrets.
  • Mitigating fraud and payment risks. Fraud prevention systems are part of outsourcing providers’ cross-border payment solutions. These technologies secure payment gateways to protect against fraudulent transactions and chargebacks. They also help in managing currency exchange risks.

7. More Focus on Core Competencies

With additional staff, technologies, and budget, your Phoenix e-commerce business can attend central activities that directly help it reach new markets. By focusing on core competencies, you can enjoy the following benefits:

  • Accelerated time to market. You can put your time and energy into developing products, speeding up the conceptualization process. This enhanced efficiency, paired with e-commerce outsourcing’s expertise and tools, enables you to deliver products to the market faster. It gives you a first-mover advantage, helping you gain early feedback.
  • Enhanced social media presence. According to Statista, 77% of consumers discover new products and brands on social media. By delegating non-core tasks to e-commerce BPO teams, you can focus on solidifying your presence on platforms such as TikTok and Instagram Live hashtag feed. You can expand to influencer marketing and user-generated content (UGC).
  • Increased omnichannel operations. This approach integrates all touchpoints. It provides a seamless and consistent journey from online stores to physical locations. Implementing this shopping experience increases conversion rates and generates positive word of mouth.

The Significance of Global Expansion in the E-commerce Industry

The Significance of Global Expansion in the E-commerce Industry

Reaching new markets offers online business owners many opportunities for growth and diversification. Here is a quick rundown of how global expansion benefits your e-commerce shop:

  • Access to new markets and a larger customer base. Global expansion allows your e-commerce business to tap into new markets with a more extensive customer base, increasing its potential sales and revenue.
  • Brand recognition and global reach. Expanding into new markets allows your business to establish an international presence. This enhanced visibility attracts new customers, partners, and investors, further fueling your growth.
  • Diversification of revenue streams. Relying solely on the Phoenix e-commerce market makes your business vulnerable to economic downturns or added competition in that particular region. Expansion helps diversify revenue streams.
  • Global trends and opportunities. The e-commerce landscape constantly evolves, and new markets emerge with new opportunities. International expansions let you adapt to global trends and stay ahead of the curve in certain regions.
  • Competitive advantage and market differentiation. By entering markets where competitors may not have a strong presence, businesses can establish themselves as pioneers and gain a first-mover advantage.
  • Sustainable growth. All the benefits mentioned above can help your online business position itself for long-term growth. They make you proactive, adaptable, and future-proof, allowing you to thrive in the dynamic e-commerce landscape.

Partnering with a BPO provider can help you efficiently scale your global expansion initiatives. By maximizing e-commerce outsourcing, you can reap the benefits of market growth more quickly.

The Bottom Line

The Phoenix metropolitan area is a thriving business hub, but the local market is finite. Expanding into new markets gives e-commerce businesses access to a broader pool of potential customers.

Partnering with a BPO provider can streamline global expansion. E-commerce businesses can easily reach new audiences by providing access to local expertise, specialized technologies, and cost-saving potential.

Are you looking for an e-commerce outsourcing partner? Let’s connect and discuss how we can help your business expand into international markets.

Picture of Ezra Samarista
Ezra Samarista is a history graduate who found a career in and passion for writing during the pandemic. She enjoys copywriting the most but finds content writing and research fulfilling. Her love for learning and simplifying information led her to become one of the minds behind the pool of business process outsourcing (BPO) knowledge that the Unity Connect website offers its visitors. Outside work, Ezra is either creating digital art, playing video games, shopping, spending time with her family and cats, or just sleeping in.
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Ezra Samarista

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