10 Ways Outsourcing Can Boost E-commerce ROI for Phoenix Businesses

Partnering with a BPO company in Phoenix with operations in the Philippines, Mexico, and other outsourcing destinations is a proven approach to reducing business costs while increasing revenue and market competitiveness. It offers reasonable service fees and employs effective remote workers to optimize your capital, leading to excellent returns on investment (ROI). 

Keep reading to discover how outsourcing can raise e-commerce ROI for your Phoenix business.

How Outsourcing Drives Your E-commerce ROI

Delegating e-commerce processes to a business process outsourcing (BPO) provider with overseas operations can improve the ROI for your Phoenix business. These activities include customer support, order processing, inventory management, marketing, human resources, and accounting.

Outsourcing can reduce business costs, boost sales, and enhance efficiency. Compared to accomplishing your operations internally, outsourcing can increase your profitability.

Consider how outsourcing can drive e-commerce ROI for your Phoenix business.

1. Low-cost, Efficient Third-party Workers for Higher Savings 

Offshoring providers in the Philippines and other BPO vendors in Mexico have affordable but effective third-party professionals, enabling you to boost your e-commerce ROI. 

As proof, compare the average monthly salaries of customer service representatives (CSRs) in the Philippines and Mexico to those in Phoenix.

Sources: Glassdoor provides the Philippines and Mexico figures, while Indeed supplies the Phoenix, Arizona (U.S.) amount. For comparison purposes, salaries were converted to U.S. dollars ($).

Engaging in e-commerce customer service outsourcing in the Philippines can save you $4,227.22 ($4,516 less $288.78) based on the above figures. However, these are estimates. To learn about actual salary amounts and calculations, connect with a BPO provider.

2. Reduced Operating Costs for More Funds 

You can save more by outsourcing instead of building an in-house team to manage e-commerce customer service and other back-office activities. Fewer costs lead to a better e-commerce ROI.

You can decrease the following costs by outsourcing: 

• Recruitment. When outsourcing e-commerce services and other processes, your BPO partner oversees human resources (HR) functions such as hiring, onboarding, and training. It also deals with labor and personnel management concerns.
• Salaries. Wages in Phoenix are rising as business demand for employees increases. With outsourcing, the service provider covers payroll and other employee-related expenses.
• Physical resources. Phoenix office rents are also climbing due to higher construction costs. Delegate your processes to an offshore or nearshore provider so you no longer need to lease extra workspaces. The service provider uses its physical and digital assets (e.g., computer systems) for your operations.  

3. Round-the-clock Operations for Nonstop Customer Support 

BPO companies can provide customer-centric outsourcing services because their remote teams are willing to work anytime—weekends, late hours, or holidays.

Hiring a remote workforce via a service provider allows your online store to provide 24/7 operations for improved e-commerce ROI. For example, your in-house department can run the Shopify store in Downtown Phoenix in the daytime while the offshore team continues the work at night.

Below are the advantages of round-the-clock support:

• Build market superiority. 24/7 customer assistance and service can improve your reputation, allowing you to achieve a business advantage. You can deliver continuous support like a big e-commerce company to outdo market competitors.

• Attract new customers. Buyers worldwide can place orders on your e-commerce store and immediately receive service. You can expand globally with ease thanks to nonstop customer support.

4. Diverse Talent to Provide Income-boosting Services

Significant e-commerce ROI growth is achievable through outsourcing. When partnering with a BPO provider with operations in Mexico or the Philippines, you gain easy access to a pool of enthusiastic, technically savvy, flexible, and college-educated workers.

These competent workers have above-average interpersonal skills and proficiency in the latest technologies, such as smartphones, digital systems, and social media platforms. 

Third-party professionals are experts in different fields that can improve your investment returns. They can: 

• Launch effective digital marketing plans
• Deploy retention strategies
• Enhance website user experience
• Leverage data analytics and metrics 
• Use conversion rate optimization techniques
• Facilitate inventory and fulfillment processes

Their broad expertise, experience, and knowledge can result in the following:

• Stronger customer loyalty
• Sharpened market edge 
• Better business and brand reputation 
• Higher staff morale and minimal turnover 
• More upselling and cross-selling opportunities

5. Increased Data Privacy to Secure Financial Information 

Cyberattacks spare no organization. Take the e-commerce industry in Phoenix. Eight out of 10 small business websites have vulnerabilities they are unaware of, based on the CyberCatch report. It was noted that small and medium-sized businesses are often targeted due to their exposed network systems.  

Cyberattacks can result in considerable financial losses, affecting your e-commerce ROI. Collaborate with a service provider specializing in data safety and security to protect your assets.

Consider the benefits of hiring a provider with a robust cybersecurity strategy:

• Rapid crisis discovery and response. The BPO provider employs competent data security specialists who use appropriate tools to screen vast amounts of data for suspicious activity and address it. 

• Increased accuracy and capacity. The third-party provider uses cutting-edge cybersecurity technologies to track more digital systems and online activities than standard security solutions.

6. Stringent Data Compliance to Avert Costly Infractions 

Many offshore and onshore providers can track government and industry policies while overseeing delegated functions to advance their client company’s regulatory compliance and preserve e-commerce ROI.

These policies include the Payment Card Industry Data Security Standard (PCI DSS), the General Data Protection Regulation (GDPR), and Arizona’s Data Breach Notification Law

Violations can have a legal and financial effect on your company. Outsourcing can reinforce compliance by:

• Auditing compliance operations. With its specialists and technologies, the BPO provider can monitor every business activity for compliance risks.
• Identifying and highlighting possible violations. The service provider combines the latest cybersecurity measures and tools, including artificial intelligence (AI), to scan data for anomalies signaling a regulatory infraction.
• Automating processes. The BPO firm’s cybersecurity platforms can accelerate data screening and analysis while observing compliance rules.

7. Scalable Processes to Effectively Control Costs 

Outsourcing enables you to scale delegated tasks in response to shifting market circumstances. This feature lets you better control running expenses and manage e-commerce ROI. 

A third-party provider supplies you with the required remote professionals to minimize unnecessary spending. It can downsize your team without dismissing staff by assigning redundant members to other clients or processes. 

Additionally, the BPO company can field more personnel to address a sudden increase in transactions or contact volume during peak periods. It specializes in meeting higher demand by deploying more remote workers.

Moreover, third-party professionals can work with your Phoenix e-commerce store’s in-house team. Scalability allows you to split the workload. The in-house team can concentrate on technically challenging and high-value tasks, while the third-party team handles lengthy and mundane duties.

8. More Emphasis on Core Competencies for Sustainable Returns 

Partnering with a BPO provider to handle e-commerce tasks allows your organization to concentrate more on income-building ventures for increased e-commerce ROI. 

These revenue-enhancing activities include additional product or service innovation, international expansion, and large-scale marketing programs. They can help solidify your competitive advantage over your industry counterparts. 

Outsourcing results in improved revenue. Better income lets your Phoenix e-commerce business: 

• Broaden the customer base faster to build new revenue streams, decreasing dependence on the current market.
• Motivate employees, including third-party professionals, with additional incentives, perks, and advanced training to promote high morale and minimize turnover.
• Invest more in advanced technologies to streamline processes, speeding up performance, productivity, and quality. 
• Focus more on service for better customer satisfaction and brand loyalty. 

9. Greater Customer Experience (CX) for Unwavering Buyer Loyalty

A customer-focused BPO company can ensure the consistent delivery of excellent e-commerce consumer service. Third-party professionals specialize in customer acquisition, retention, and satisfaction.

Examine the benefits of higher CX:

• Reduced advertising expenses. Increasing CX boosts sales while decreasing acquisition costs. With a robust customer base, you can cut your promotional budget and channel it to other initiatives. 
• Exceptional shopping experience. BPO companies harness customer data to help provide more accurate product details, leading to more substantial customer confidence and additional orders. Third-party specialists can help you satisfy shoppers and build product or service credibility.
• Improved brand image. A strong reputation contributes to an expanded customer base. Third-party professionals can boost CX by utilizing innovative technologies, such as AI-powered chatbots and data analytics, to generate more committed customers and a higher market share.

10. Large, Competent Workforce to Provide Excellent Outsourced Services 

Phoenix has a diversified talent pool. Still, the market has experienced a labor shortage because businesses in the Valley continue to benefit from an e-commerce-driven expansion. 

In contrast, outsourcing offers deep talent reserves from the Philippines and Mexico (see below).

Source: The Philippines and Mexico data from Trading Economics; Phoenix, Arizona figures from U.S. Bureau of Labor Statistics; LFPR for Phoenix as of 2021 

An ample workforce means affordable wages, typically stabilizing salary costs for an extended period for a sustainable e-commerce ROI. 

The Bottom Line

Achieving your desired ROI with outsourcing has its obstacles. One disadvantage of delegating activities is sharing sensitive customer or client data with the BPO provider. Address this issue with the prospective partner. Make sure to obtain a privacy agreement to properly manage information. 

Certain challenges can occur when outsourcing processes, but they can be avoided with detailed preparation, research, and analysis. Ask your BPO potential partners for outsourced customer service tips and suggestions to help you succeed in outsourcing. 

Let’s connect if you want to learn more about ways to boost e-commerce ROI for your Phoenix business!