The Importance of Outsourcing in Streamlining Operations for Your Phoenix E-commerce Store

A BPO company in Phoenix with international reach can help your e-commerce business oversee various operations. Many service providers offer everything you need, from customer service and logistics to administrative functions. 

Third-party vendors also have the cybersecurity expertise and resources to deal with threats. They can optimize your workflow while protecting your e-commerce shop from hackers aiming to steal your data. They offer an integrated service.

This article explains how outsourcing can help streamline operations for your Phoenix e-commerce store. 

Keep scrolling to learn valuable ideas for effective outsourcing.

Outsourcing Streamlines Operations for Phoenix E-commerce Stores

You might be one of the Valley’s Shopify or WooCommerce stores with experienced sales growth following the pandemic-induced lockdowns. Since then, many Arizonans have preferred to shop online from the comfort of their homes. However, the e-commerce industry is intensely competitive.

One strategy to stay ahead of the competition is to simplify your present processes through outsourcing. It is a proven method to keep your business streamlined. 

The following are ways outsourcing helps improve efficiency, output, and income while reducing costs for Phoenix e-commerce stores.

Lower Operating Expenses to Optimize Budget 

Outsourcing simplifies processes for your Phoenix e-commerce store by minimizing the need to spend on physical and digital resources, staffing, and wages. Such operating costs can become expensive as you grow your business.  

Discover how a business process outsourcing (BPO) company can help manage your web store activities and reduce expenses: 

• Physical and digital resources. You do not need to invest in fixed assets that depreciate over time. The outsourcing company uses its workspace, computer systems, and other physical and digital assets to handle your e-commerce processes.
• Staffing and wages. Working with a BPO firm focusing on customer-centric outsourcing diminishes payroll costs. The partner deals with time-consuming and costly hiring tasks, such as placing job ads, vetting and examining candidates, and orienting new employees. You also avoid upskilling costs.

Greater Emphasis on Core Competencies to Gain a Competitive Advantage

You can focus on your strengths when outsourcing your Phoenix e-commerce store. Making back-office functions less complicated means you can spend more time on income-generating activities, including developing and launching new products or services or expanding your consumer base.

When outsourcing e-commerce services, such as customer support or payment processing, you can strengthen your core competencies to achieve and maintain a business edge over market rivals.

Check the benefits of a better competitive advantage: 

• Higher customer retention. Shoppers are more likely to buy from you if you continuously deliver exceptional customer service due to outsourcing. 
• Improved markup. With a market edge, you can offer products or services at higher prices, increasing margins and earnings.
• Bigger market slice. You can hold a chunkier market share with a competitive edge, resulting in raised income. 

Cost-effective and Reliable Remote Workers to Maximize Yields

Outsourcing for your Phoenix e-commerce store enables you to acquire competent talent overseas. While the Valley has a diverse local workforce, the labor market is tight as unemployment is low. As such, employers must raise salaries and benefit packages to attract and retain employees.

In contrast, offshoring providers in the Philippines and nearshoring providers in Mexico offer affordable but equally competent third-party professionals.

For instance, check the average monthly salaries of Filipino and Mexican customer service representatives (CSR) compared to Phoenix. 

Sources: The Philippine and Mexico amounts are from Glassdoor, while the Phoenix, Arizona (U.S.) figure is from Indeed. All salaries were converted to U.S. dollars ($) for comparison.  

The table above shows that e-commerce customer service outsourcing to the Philippines can save you $4,171 ($4,625 minus $454). To learn the exact costs, contact a BPO provider. 

Scalable Processes for Cost Efficiency 

You can achieve scalability to help streamline operations when outsourcing your Phoenix e-commerce store. A BPO provider can scale delegated operations based on your requirements. This means operating costs rise when you ask for more of their services and decrease when you ask for less. 

The service provider gives you the appropriate third-party team size to help you manage spending. It also handles employee issues or problems. The BPO company can lower your team size without dismissing workers. It can reassign affected third-party contractors to other accounts or operations. 

Additionally, the BPO provider can add more functions or features to their services if task or transaction volume suddenly increases. This is advantageous for you during holidays and significant promotional events when sales are high. 

Productive Remote Teams for Increased Output

Outsourcing can also increase staff productivity for your Phoenix e-commerce store. A BPO provider allocates duties to remote teams with better work schedules and effective setups. Work-from-home (WFH) third-party professionals can focus more on their tasks since they no longer need to travel and perform time-consuming activities.

A WFH team can deliver quicker and more accurate services. Here are some factors leading to enhanced remote work productivity: 

• Strict remote work policies. The BPO provider enforces stringent WFH policies to sustain teamwork and efficiency. 
• Frequent online meetings. Third-party workers use simple communication software to monitor each other for task updates and progress. 
• Equipped remote workers. Third-party professionals typically receive the computer systems and digital devices necessary to streamline processes from the BPO provider.

Varying Work Schedules for Consistent Customer Support 

Third-party teams willing to work on different schedules (e.g., weekends, graveyard shifts, holidays) are what you get when outsourcing processes for your Phoenix e-commerce store. 

Outsourcing allows your e-commerce shop to provide 24/7 customer service. Your on-site team in Phoenix runs operations during the daytime while the third-party workers take over at night. 

Consider the advantages of round-the-clock e-commerce customer service: 

• Attract consumers from different time zones. Your business is always available to customers worldwide. If the BPO provider can deliver consistent service, you can expand overseas. 
• Solidify business advantage. 24/7 consumer support can help you stay ahead of your industry opponents. Your burgeoning Shopify store in Phoenix can offer continuous customer service similar to that of e-commerce giants, differentiating itself from competitors.

Superior Customer Experience (CX) for Boosted Patronage

Outsourcing for your Phoenix e-commerce store enables you to improve the customer experience for more committed and happier buyers. A BPO provider can implement customer-centric procedures and provide you with third-party professionals specializing in first-rate service and high customer satisfaction. 

Uncover the perks of outsourcing to drive CX for your Phoenix e-commerce store:

• More favorable responses. The third-party team can deliver more positive customer feedback, reinforcing brand loyalty. Delighted shoppers tend to recommend your product or service. They also return for multiple transactions, generating extra revenue while lowering advertising costs.  
• Expanded brand awareness. More brand supporters result from exceptional customer service. The BPO provider can also help establish a solid brand image for a more significant market share and outperform or stay close to the competition. 

Enhanced Data Security and Compliance to Avoid High Financial Costs 

Did you know that eight of ten small business websites in Arizona have vulnerabilities they are unaware of? Is your Phoenix online store one of them? 

Cybersecurity is one process you can streamline via outsourcing for your Phoenix e-commerce store. The BPO company protects confidential and critical data from online threats and attacks. 

The service provider also assists your organization in correctly applying technology and security protocols to enhance compliance with government and industry regulations. You need strict adherence to rules to avert financial, legal, and reputational repercussions. 

Examples of these regulatory policies include: 

• The Health Insurance Portability and Accountability Act of 1996 (HIPAA)
• The General Data Protection Regulation (GDPR)
• The Payment Card Industry Data Security Standard (PCI DSS)

Helpful Outsourcing Tips for Phoenix E-commerce Stores

The BPO industry is complex, with numerous vendors offering diversified services. Follow these six steps to choose a partner that can aid you in streamlining operations for better performance, productivity, and profit.

• Set targets and criteria. Design and review outsourcing strategies. Choose the ideal third-party team size, communication methods (e.g., live chat, phone calls, social media), and outsourcing model (offshore or nearshore) for your business needs. 
• Examine vetted potential BPO partners. Perform an in-depth check on each potential third-party vendor. Assess its qualifications, background, and expertise. Look for reliable partners with specialized personnel to run outsourced e-commerce services. Inquire about the company’s data security and privacy policies. 
• Compile a detailed list of service charges. To correctly manage the budget for outsourcing, get a full breakdown of service costs, additional charges, and hidden fees from each initially screened BPO company. Analyze their service fees, calculate pricing plans, and conduct a comparison study. 
• Develop a request for proposal (RFP). Trim the pool of candidates. Send an RFP to every willing third party on your list. Include in the document the scope of the outsourced tasks, timelines, budget caps, and suggested solutions to potential issues.
• Choose the BPO partner that exceeds your requirements. Sign a service-level agreement (SLA) with your new partner, stating the amount and types of support needed. The SLA outlines the conditions governing the execution of the outsourced efforts and key performance indicators (KPIs).
• Keep in contact with the partner to monitor outsourced processes. Check the BPO partner’s performance and productivity based on the SLA. Interact regularly (online and in person) with the third-party provider’s assigned managers concerning progress, status, and targets. 

The Bottom Line

At this stage, you should better understand how outsourcing can help simplify operations to improve efficiency, output, and revenue for your e-commerce store. Delegating some online processes is feasible if you need more time, money, effort, and other limited resources. 

Contact service providers and inquire about their e-commerce outsourcing services. They can provide you with outsourced customer service tips and other essential pointers. Collaborate with the right person to assist you in reaching your objectives. 

Let’s connect if you want to learn more about the importance of outsourcing in streamlining operations for your Phoenix e-commerce store!