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The Strategic Edge of Outsourcing for Retail and eCommerce Expansion

The battle in the retail and eCommerce sectors is getting tougher. If you run a business and want to stay ahead of the game, it’s decision time. Will you opt for outsourcing your operations or develop them internally?

This guide will detail the advantages of outsourcing and illustrate how such a strategy can amplify financial gains.

1. Unlock Business Growth: The Power of Outsourcing in Retail and eCommerce

Ecommerce outsourcing
The Strategic Edge of Outsourcing for Retail and eCommerce Expansion

1.1 Making things run more effectively

When businesses get help from outside companies, they make things run better. They let experts handle everyday jobs like talking to customers, sending out orders, and keeping track of stock. 

This means your team has more time to make new products, think of great marketing ideas, and come up with fresh, exciting things. You can stay ahead by focusing on these important areas, which makes the whole business work better.

Also, you won’t need to manage these outside teams yourself. The company you hire will take care of that. 

For instance, if you need someone to look after your money, you don’t have to hire them to work in your office. You can just pay an outside company to do it when you need it, like when it’s time to do taxes. This is smart because it saves you money—you don’t have to buy things for an accountant in your office, and you don’t have to worry about other costs that come with hiring someone full-time. The company you hire has all that sorted out already.

1.2. Easy reach to expert knowledge and special skills

Ecommerce outsourcing
What clients say about The Staffing Company (TSC) (Source: Clutch)

Retail and online shops can tap into a group of talented people by outsourcing. The right outsourcing service provider should have a deep understanding and skills in specific areas, like website creation, online advertising, or data study. With this expert knowledge, you can use the best methods and get ahead of your competitors in a fast-moving market. Furthermore, it’s more cost-effective and efficient to assign tasks to someone who’s already qualified, rather than spending time and money to train yourself.

Imagine a small clothing store that sells comfortable and stylish apparel online. Your store has a loyal customer base, but you dream of reaching more people online. You know your website needs a makeover, and your social media ads could be more engaging. Plus, you’re sitting on a goldmine of customer data but aren’t sure how to use it. 

In this case, you can outsource the tech. Find a web developer that revamps your website. It’s now user-friendly and looks great on smartphones. Sales start to climb as customers enjoy the new experience.

Next, outsource the Ads. Consider hiring a digital marketing whiz to handle your online ads. Ensure that the campaigns are creative and targeted, bringing in shoppers from all over.

Finally, how about outsourcing the numbers? You may outsource data analysis to a specialist who turns numbers into insights. As they help you understand your customers better, you’ll make more informed business decisions.

It’s like finding the right puzzle pieces. You find experts who fit perfectly with what your business needs. By outsourcing, you put those pieces together to create a bigger, better picture.

1.3. Unlocking budget-friendly strategies

Saving money is a big plus for retail and eCommerce businesses when they get help from other companies to do some of their work. It’s like this: if you have a small shop, it can cost a lot to have your team for everything. But if you let another company do some jobs, you don’t have to spend money on big things like a workplace or extra benefits for the workers.

Let’s say you need someone good with computers in the U.S., and you pay them $75,000 a year. But really, you’re spending almost $100,000 because you also have to pay for things like their health care and work environment. 

Now, if you find someone from Vietnam to do the same job, it might only cost $8,000 a year. And you don’t have to worry about all the extra stuff. You could even get three people for different times of the day, so you always have someone working, and it would only cost $24,000 for all of them.

Some might wonder if Vietnamese employees are as good. Well, just like anywhere, some people are great at what they do, and some aren’t. You can tell who’s good by how they explain their work to you. 

Above all, Vietnam stands out for its commitment to education, boasting a 96% literacy rate—a testament to the country’s prioritization of learning. Impressively, a significant 80% of college graduates specialize in science and technology, equipping the Vietnamese workforce with the expertise necessary for high-tech outsourcing roles.

Ecommerce outsourcing
Source: Vietnam IT Salary Guide 2024

And just because you’re paying less doesn’t mean the people in Vietnam are getting less. The cost of living varies globally. So, even if you pay less for their work, they’re still getting a good deal, just like the more expensive services in the U.S.

Ecommerce outsourcing
Source: Numbeo

1.4. Expanding business worldwide through outsourcing

Ecommerce outsourcing
Expanding business worldwide through outsourcing

Outsourcing is like opening a window to the world’s marketplace. When eCommerce and retail businesses work with partners overseas, they can learn about what customers around the world like and buy. This important information helps these businesses make products and services that fit what different people want and grow by reaching out to new places. So, outsourcing is a key step in growing a business all over the globe.

Let’s picture an online shop in the U.S. that sells clothes. They decide to have a company in Vietnam handle talking to their customers. This move makes their customer service better and gives them a chance to learn important things about the market. 

The team in Vietnam talks to customers from many places, giving the shop tips about what’s in style, what sizes people prefer, and special things about different cultures that might affect what people buy. This helps the shop make clothes that people from all over the world will like more.

Besides, working with the Vietnamese company lets the shop look closely at what customers ask about and what they complain about. With this knowledge, the shop can change how they advertise, design their clothes, and set prices to connect with certain groups of people and start selling in new areas. 

In this story, outsourcing doesn’t just make things run smoother. It’s also a smart way to use what they learn about the world’s markets to help the business grow and reach further.

1.5. Boosting customer happiness

Making customers happy is key for any business. When you outsource the right customer support services, they can get help anytime, day or night, no matter where they are in the world. 

This means that any questions, problems, or concerns customers have will be sorted out quickly, which makes them more likely to stick around and keep buying. Plus, these helping companies often have people who can speak many languages, so they get to talk to all kinds of customers without any language problems.

Customer service representatives (CSRs) who work with these outsourcing service providers use a guide to answer calls. They’re great at answering the same questions again and again for everyone. The CSRs undergo comprehensive training to learn every aspect of your business. So, no matter what the customer asks, they have the right answer. 

These companies are also great at dealing with lots of calls at once. That means your CSRs can talk to customers right away, without you needing to hire more people or work extra hours just to talk to customers.

Saving money with this outsourcing isn’t just because it costs less to pay people in other countries than in the U.S. These companies have special systems and tools that make them super good at using their time and stuff. Because they’re big and do a lot of business, they can do things cheaper. And with their tech-savvy ways, you can get top-notch work done without spending as much as you would for someone working directly for you, and that’s not even counting the extra costs like health insurance.

1.6. Flexible and efficient business growth

When businesses need to adjust their operations, they can turn to outsourcing for a solution. Imagine a retail or e-commerce company during busy times like holidays or sales. They can easily expand their services by outsourcing specific tasks. 

Let’s consider a startup that makes healthy snacks. As they get bigger orders, they might partner with a co-packer. These co-packers have the space, equipment, and staff to handle the current orders and can quickly scale up when needed. Plus, since they work with other companies too, they keep costs low.

Else, think about a tech company that’s growing. Their support workload is increasing, and they’re struggling to handle all the customer inquiries. Instead of hiring more internal staff, they might consider an external call center or support firm.

1.7. Swift market entry with outsourcing

Ecommerce outsourcing
Vietnam, Indonesia, and the Philippines are highly likely to attract more investors over the long term. (Source: Vietnam IT Salary Guide 2024)

When retail and e-commerce businesses venture into new markets, they face a maze of legal, regulatory, and logistical hurdles. These challenges may impede the process. 

However, partnering with local outsourcing experts who know the lay of the land can be a game-changer. They help you swiftly enter new markets, reducing the time it takes to launch new products and services.

For instance, consider IT outsourcing in Vietnam. Here, businesses grapple with local labor laws, tax rules, and other compliance demands. Labor laws cover critical aspects like employment contracts, work hours, wages, and benefits. Tax regulations dictate how businesses handle financial obligations like corporate income tax and value-added tax (VAT). Compliance requirements even extend to licensing, data protection, and health and safety standards.

The right outsourcing service provider becomes your compass. They interpret complex legal frameworks, ensuring compliance with labor laws, tax rules, and industry-specific standards. When disputes arise, they step in with representation and resolution strategies. Their insider knowledge keeps you on the right track, helping you navigate compliance challenges effectively.

2. Why TSC is Your Partner for Growth in Retail and eCommerce

Imagine this scenario: A fellow entrepreneur suggests, “Why not build a team in Vietnam? It could be more cost-effective than hiring locally.”

You nod thoughtfully, saying, “I’ll consider that,” while internally questioning the practicality of such a move.

The idea seems promising on paper. But do you believe that managing a team remotely, especially one overseas, introduces a complex set of challenges (e.g., time zone differences, language barriers, cultural nuances, varying skill levels, and travel complexities)?

Indeed, outsourcing this to TSC, a leading staffing and payroll agency in Vietnam, is going to be completely different. Because our steadfast dedication is focused on ensuring your success.

Ecommerce outsourcing
Your success is our priority. (Source: Clutch)

Ensure that whichever strategic direction you pursue, you have our expert team by your side, ready to connect you with the right talent. We provide you with an unbiased assessment of work quality and operational procedures, even for intermittent engagements.

Reach out to us, and we will steer you towards a seamless and efficient outsourcing journey.


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