In eCommerce, order management is one of the most important factors in determining a company's...
The best way to manage the back-office operations of eCommerce is through outsourcing
ECommerce back-office management is a complex and multifaceted process that involves a wide range of tasks and responsibilities. From accounting and finance to inventory management, customer service, and IT, the back-office operations of an eCommerce business are critical to its success. However, managing these operations in-house can be time-consuming, resource-intensive, and overwhelming for small and medium-sized businesses.
Your eCommerce business depends on several operations, therefore you'll need all the help you can get. However, growing your company can be challenging, particularly if you want to add new services to the mix. The assistance you require to cover the back-office tasks that are crucial to you and your clients might be obtained from outsourcing companies.
The complexity of back-office management
Back-office management can become complicated and challenging to handle when there are so many activities and procedures.
1st challenge: Accounting & Finance
One of the biggest challenges of eCommerce back-office management is accounting and finance. This includes tasks such as invoicing, bookkeeping and reconciling accounts. Keeping accurate financial records is essential for the business to stay on top of its finances, but it can be difficult to manage these tasks in-house.
2nd challenge: Inventory Management
Another challenge is inventory management. This includes tracking inventory levels, ordering new products, and forecasting future demand. Inaccurate inventory management can lead to stockouts, overstocking, and wasted resources.
3d challenge: Customer Service
Customer service is also a critical aspect of eCommerce back-office management. This includes responding to customer inquiries, handling returns and exchanges, and managing customer complaints. Providing good customer service is essential for maintaining customer loyalty and building a positive reputation for the business.
4th challenge: Human Resourced and Data Management
Human resources and IT and data management are also important aspects of eCommerce back-office management. Human resources include recruiting and hiring new employees, managing employee records, and handling payroll. IT and data management include maintaining and updating the eCommerce platform, managing customer data and security, and troubleshooting technical issues.
As these tasks are different from your core business tasks, you need to hire people with different skill sets to handle them. This results in larger payrolls for your business and increased demands on your infrastructure, both of which will make you spend more money.
So, how to reduce these costs? Easy, consider outsourcing!
Why outsourcing is the key to managing your back-office operations
Handing over certain back-office tasks to a specialized provider can free up time and resources for the business to focus on core operations and revenue-generating activities. It also allows the business to benefit from the expertise and experience of the outsourcing provider, who can handle tasks such as accounting, inventory management, customer service, and IT with more efficiency and effectiveness.
Here are a few more reasons why outsourcing is beneficial for your back-office operations and your business in general:
- Lower costs
You will spend less money on third-parties than on internal staff. You're off to a good start when you combine this with the savings you'll realize from the decreased infrastructure needs.
- Working 24/7
The time zones between you and the companies you're working with may be quite different. This implies that your vendor is working when you're offline and vice versa. It can be advantageous for your business since it guarantees that your externalised partner will have completed yesterday's tasks, allowing you to move on right away the next day.
- Use of the newest technology
There are many advantages to handing over back-office operations to companies with expertise in these areas. The first is having immediate access to the newest software and technologies. Any reputable BPO will make sure that they are using the most recent technology and procedures to complete the necessary back-office tasks. By doing this, you can avoid spending the time and money necessary to buy, set up, and train staff members to use these technologies.
- Greater attention to core business needs
Stakeholders may concentrate on key business responsibilities with a lot more time thanks to the outsourcing of back-office functions. Your staff may concentrate on product development, sales, marketing, development, and more, rather than producing reports or managing invoices and payrolls.
- Resource management with the flexibility
Making decisions regarding how and where to distribute resources is also made simpler by the decrease in the number of tasks you need to think about. Your firm will become leaner as a result of outsourcing back-office tasks, and resource management will also become quicker, better, and more adaptable.
- Best Practices
You may live in peace knowing that your back-office procedures will adhere to the finest standards in the sector because these companies specialize in them and have a ton of experience. This saves you the time and effort necessary for creating and maintaining the same processes internally while also ensuring that they are as efficient as feasible.
Other practices that can be more successful when collaborating with a third-party service provider include:
- Developing and implementing clear policies and procedures
- Communicating effectively with all departments and stakeholders
- Continuously monitoring and analyzing key metrics to identify areas for improvement
- Staying compliant with all relevant laws and regulations etc.
The question now is: Are you ready to outsource?
Continue reading if you're still unsure about outsourcing. If the following statements apply to you, you might be more than ready to give your eCommerce operations to a third-party
- You're confined to business activities
A company's operations are crucial for its continuity. This involves keeping your product catalogue online, responding to consumer inquiries, and promoting your online store.
When you first started, you were the only one who managed these tasks. However, as the reach of your online store expands, you'll need more help to keep things operating smoothly so you can focus on developing your company's long-term strategy.
You may want to think about outsourcing to assist your regular operations if you're having trouble with the operating aspect of your firm.
eCommerce services, including customer service, online marketing, and product information management, are offered by some third-party providers. You'll have more time to grow your company and generate fresh ideas once you begin outsourcing your back-office tasks.
- Your company is expanding quickly
It seems like a nice problem at first glance.
Your online store is expanding, therefore you must keep up with the increased workload while maintaining client happiness. When the chance for advancement is in your grasp, you want to avoid any obstacles as much as you can.
Consider whether you have adequate resources to support the growth of your online store given the growing need for new services to satisfy the needs of your customers.
The best approach to transition from a small shop to an eCommerce store is through outsourcing. You're in luck since there are lots of flexible, affordable options that have been specifically designed to boost the productivity of your online store.
You want to develop new concepts and ideas
Growth is important for any business and is even necessary for long-term existence.
Ideas help your eCommerce firm continue to expand and scale new heights. They encourage you to investigate underserved markets, start innovative marketing efforts, and innovate your current product line.
Ideas can lead to more money coming in, but first, you need to be able to turn them into something that brings in money.
The more your online store expands, the harder it is to find the resources needed to implement these concepts
Your finances are tight
It makes sense that you would want to cut expenses because doing so increases your chances of more earnings, duh.
You must find techniques to boost your revenue as an owner of an eCommerce store without compromising the quality of your goods and services.
When compared to recruiting in-house staff, outsourcing can result in labor and operational cost savings of up to 60%. Expert job delegation will result in greater cost savings and even better outcomes.
You want to enhance your interaction with customers and improve the customer experience
Improving your customer experience can assist you to solve issues that customers can run into while completing the online buying process.
A one-stop eCommerce third-party firm with customer support services is even better because it can bring customer service specialists inside your company.
You need the correct knowledge
eCommerce offers a chance for rapid growth, but failure is likely to happen if the wrong people are on your team.
You'll need subject-matter expertise to support your eCommerce business, whether it's for SEO, site usability, customer care, or product information management.
The greatest location to discover qualified experts is at third-party businesses. They can give you access to knowledgeable eCommerce experts who can help you avoid the traps of running an online business.
You're seeking a wider range of talent
Any business faces difficulties when trying to bring on new employees. Sadly, there are occasions when incompetent individuals take over your back-office activities.
You may need to restart your hiring procedure since they may struggle to manage your eCommerce store or show no interest in providing the level of customer support you require.
Your issues with a talent shortage may be resolved by outsourcing. Even better, externalising will enable you to hire staff from a huge pool of highly skilled workers at a reduced price.
Outsource your eCommerce back-office operations at We Are Fiber
It's not simple to adjust your company to the expansion of the eCommerce market and that’s why we are here. Don’t hesitate to reach out by clicking here.