If you have recently started an e-commerce business, or are considering doing so, you may have heard something like, "One of the greatest benefits of running an online business is the freedom it offers."
Running a virtual company does offer more freedom and flexibility than a traditional company. There is no physical office space to maintain, and often fewer employees are needed to keep things running. Business owners can work wherever they like and are not constrained by a 9-to-5 schedule.
However, managing a successful e-commerce company is no easy task. Starting and running a business online still requires a lot of work - especially in the beginning. Unfortunately, much of that work often falls on the company's founders.
When there's too much on anyone's plate, it can lead to tremendous stress, burnout, and lack of focus. Even the most driven entrepreneurs are not immune to these pressures. These negative effects can spell the death of a new business. Sadly, this is one reason why 90% of online companies fail within the first few months.
As the saying goes, "Jack of all trades, master of none." No matter how skilled, talented or committed you are to running an online company, the truth is that one person simply can't do it all. And even the rare person who can do almost anything has only so much time in the day.
For online entrepreneurs, it is absolutely essential to know when and how to outsource, rather than scrambling from one task to another and compromising the quality of work. Here are three key areas to consider.
1. Inventory management
The inventory process can be an absolute nightmare when starting an online business. Many people run these businesses out of their own homes or small office spaces - places that often don't have the storage space needed for inventory. This means that additional storage units or warehouse space needs to be rented out. And that can be costly for a new business!
If a company doesn't have or can't afford the extra space, they may take the approach of keeping inventory low. However, this strategy greatly limits revenue and can backfire once sales start to pick up.
Another inventory challenge for online startups is the lack of historical data for inventory forecasting. For new businesses, figuring out how much product is needed can be a costly guessing game.
Instead of handling the extremely stressful task of inventory management, online business owners are better off outsourcing this task to a direct sales vendor. Direct shippers handle the entire inventory and shipping process. In many cases, this means that the online company itself doesn't even have to touch the product. By eliminating inventory costs and ordering errors, online retailers who work with resellers see an 18% increase in profitability.
2. Content Marketing
Content marketing is a key business component needed to attract relevant audiences and improve SEO rankings. However, consistently creating high volumes of quality work can be a daunting task. Even professional content marketers say that the time required to create great work frequently is one of the biggest challenges of the job.
On average, a customer will review three to five pieces of content before considering a purchase. If the content is of high quality and provides useful information, that customer is more likely to convert. In addition, sites that publish top-notch content and are labeled as "leaders" in their niche report almost eight times more online traffic than their competitors.
Because content quality is so important to building business and attracting customers, it makes sense for some online startups with limited resources to outsource content marketing. There are many freelancers and marketing agencies that can provide this service at a very low cost. Of course, hiring an in-house marketing team may be helpful in the future. But for most online companies, going the outsourcing route is a good option to save time and money.
3. customer service
Customer service is an essential component of a successful business. It is also one of the most challenging parts of an online company. Few interactions are done in person. In addition, online stores are not limited by traditional business hours, which means that many customers want to be supported at all times.
For brand new startups with little to no staff, the task of handling customer inquiries via email or phone can be tedious. Online customers are definitely an impatient bunch. 75% of online shoppers expect a response in as little as five minutes. Of course, if they don't get the help they need, they're likely to abandon their order.
Excellent customer service is a valuable asset that companies must have if they want to expand their customer base. Many companies are looking to outsource their customer service departments to save money and free up time to focus on other aspects of their business.
These reasons are certainly important. However, the traditional approach to outsourcing customer service means partnering with a company (usually one that exists overseas) and providing a script for agents to interact with customers.
Unfortunately, this approach has produced less than desirable results for many businesses. First, it leaves the business owner with little control over the customer service interaction. An untrained representative can easily provide incorrect information to a customer. It also hinders the delivery of a consistent brand message and experience. This is because call center workers may have little or no knowledge of the company they represent.
Chatbot
Thankfully, there is another option that is easier to control and maintain.
Artificial intelligence-driven chatbots have become increasingly common over the past few years because of their ability to provide real-time support to customers. These tools can be programmed to answer the most common customer queries. They can even provide product recommendations for up-selling and cross-selling. Machine learning technology collects data from each interaction to improve conversational skills and deliver better results over time.
Because of the ability to provide immediate assistance, 45% of customers have reported that they prefer to interact with the live chat feature rather than call the customer service department. As chat bots become more common and sophisticated, their popularity is likely to only continue to grow.
Conclusion
Online entrepreneurs often wear multiple hats - especially in the initial stages of their business. Unfortunately, multitasking in a company can ultimately hurt the bottom line, especially if it gets in the way of a great customer experience.
On-line companies can certainly benefit from help. Outsourcing various tasks in your business is a great way to improve results while saving business owners time, money and hassle. c
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