If you’re one of the seasoned entrepreneurs, then most probably you’re familiar with the dropshipping/outsourcing business model.
If you’re trying to set up your e-commerce store but money and warehousing cost is one of your top worries, then outsourcing could be your helping hand.
An expert e-commerce development agency can design & develop a great online store perfectly suitable for operating a dropshipping or outsourcing-based e-commerce platform.
Let’s learn about dropshipping and outsourcing first.
Dropshipping is a business model where you don’t need to manage an inventory or own a warehouse filled with your products. A dropshipping store connects buyers with suppliers.
You can outsource the products from a supplier or product manufacturer and display the products in your store. When a buyer purchase from your store, you can pick the product from the supplier and ship the product to the buyer. This way you don’t need to worry about managing inventory or dealing with leftover or running out of stock.
The outsourcing model of business works perfectly for dropshipping stores. Rather than taking control of all parts of your business or trying to do all the tasks by yourself, it is better to focus on what you know in-depth.
Hire virtual assistants and let them manage other aspects of your business. You don’t need to hire in-house experts they can work virtually right from the comfort of their homes or offices.
Let’s say you’re finance & accounting expert, then handle all the financial operations on your own and hire virtual assistants for operations like designing ads & marketing strategies, improving your store, and other related tasks. The outsourcing model bares you from the expenses of paying office rent and dealing with other employee-related expenses.
Advantages of outsourcing in e-commerce
- Brings down the cost
Permanently hiring a workforce brings many expenses with itself. Even if you have a small team of 4-5 members, the cost will be huge. Let’s say you don’t have enough work to keep them busy all day, then it is not great to have a permanent workforce.
You’ll be paying office rent, daily expenses, coffee or food expenses, energy bills, equipment purchases, and so many other expenses. Outsourcing experts can bring down the cost to only salaries. The only expense you’ll pay them is their salaries.
- Exposure to experts and ideal technology
An outsourcing e-commerce development agency can create a big difference in your platform. If you outsource experts, your store would get exposure to high-level expertise and the latest technology.
If you’re not aware of the technical aspects of handling and development of the store, then outsourcing experts is the best option for you. In case your strengths are in accounting and finance management, then you don’t need to be equally good at creative work and IT-related work.
Outsourcing IT professionals would increase the chances of your success and creative work should be handled by professional designers and marketers. An expert e-commerce development agency can give you access to all types of experts needed to successfully run an online store.
- You can focus on your strength
Many entrepreneurs do this mistake of trying everything on their own. It isn’t a bad thing to self-learn and manage your operations by yourself but it can leave you far behind in the competition.
If you outsource experts, then you can focus on your strengths and give your best performance. Otherwise, probably you won’t be able to put your best foot forward in your key areas if you try to deal with everything alone.
For example, if you’re a developer and SEO expert, then focus on your strengths and leave the marketing and creative work to your virtual assistants.
When you should outsource?
Outsourcing may not be the right choice if it is not obvious to outsource. Outsourcing is linked to some factors that allow you to decide whether you need to outsource or not. Let’s look into the signs that determine it’s time to outsource.
- Your business is rapidly growing
When you experience rapid growth in your business and you are finding it difficult to manage simple operations and need to provide high-quality user experience, then outsourcing is the right step to take.
Scaling your business is very crucial and if you fail to do this, you’ll experience certain failures in your business. Outsourcing would be ideal in case your business is rapidly growing.
- When you need people but can’t hire them
Sometimes you’re caught in a situation where your business needs helping hands and few team members but you’re not ready to bear expenses of salaries, rent, energy bill, and other expenses.
You should outsource virtual assistants or simply use services that could benefit your business. There are plenty of plugins, applications, and software that helps to manage several operations.