Why outsourcing makes you win in international e-commerce
Written by Tobias Riis Christensen
As e-commerce brands and retailers eye international markets for expansion, the temptation of new customers and revenue streams is undeniable. Outsourcing or in-house is often a key consideration in this process, alongside navigating the complexities and challenges of global expansion. One of the most significant hurdles is the leap from domestic comfort to foreign unpredictability.
When speaking to clients and beyond, we find that companies are often asking themselves: "How do we expand abroad effectively?". We answer that question in meetings all the time but today we are putting pen to paper (or fingers-to-keyboard if you will) and outlining an answer to this question.
The need for speed and local expertise
We see that companies are dreaming of scaling fast, penetrating, and growing quickly in new markets. This, however, requires a nuanced understanding of local customer expectations, cultural norms, and business practices. Local competencies are not just beneficial but crucial; they are not "Google"-able, they are lived and learned over years. This is where the power of getting outside help shines. By consulting with native e-commerce experts, businesses can enjoy the advantages of local knowledge and skills without the hefty price tag and time investment of hiring whole native teams.
In that way partnering with native experts is not just a pathway to local insights; it is also the most cost-effective way to do it. It eliminates the need for substantial initial investment in hiring, training, and technological infrastructure. Moreover, it offers the opportunity to centralise various services with one partner, providing everything from customer service to market analysis under one roof.
Balancing 24/7 availability with limited resources
A notable pain point for many e-commerce companies is how to provide customer service in a newly established market. In the beginning, when orders are few and the customer service load is less, offering comprehensive multi-channel customer service is, at its best difficult, at its worst impossible. It is simply not a full-time job and hiring a native to handle 15 emails, phone calls, and chats a day means a lot of downtime. Downtime that often is filled with other tasks but those other tasks then become a problem when growth occurs – cause how should that native then prioritise their work?
When done right, outsourcing customer service to a partner removes the above pain, makes every penny count and allows you to provide quality customer service in new markets. The partner handles scaling the resources, and the training of employees, ensures availability, often even at every single hour of the day, and makes sure your customers will always be greeted in their mother tongue. Not to mention how specialising in customer service means that the technological setup is designed for it, making every interaction better, faster, and more frictionless for the end customer.
Additional services when outsourcing customer service
Outsourcing customer service does not stop at handling inquiries and complaints. It extends into leveraging technology to enhance the customer experience. Imagine having your customer service data analysed by AI, which provides actionable insights and real-time feedback to you? Or technologies that prioritise specific kinds of conversations based on urgency? Chatbot technology that is included in the price and allows your customers to serve themselves? This technological edge can be a significant differentiator in competitive international markets and something that requires significant investment if businesses want to do it all themselves.
How to expand abroad effectively
Expanding your e-commerce business internationally is no small feat, but it is made significantly more manageable with the right partners. Leveraging the knowledge of natives and outsourcing customer service is a powerful strategy, offering speed, local expertise, cost savings, and advanced technological capabilities. As you navigate the complexities of international markets, remember that you do not have to go it alone – and doing it together can even come with cost savings. Outsourcing and partnering can be the catalyst for your global success and part of your future success story of international expansion.
There is much to learn from those who have tread the path before you. Explore our case studies to see how other brands have successfully expanded internationally and overcome challenges with the help of outsourcing.
