It is hard to imagine our lives without the internet in our world today. With a simple tap on the screen of our mobile devices, we instantly receive or transmit information from and to the other side of the world. Businesses and Tech-savvy personalities were quick to invest in its massive potential. The innovative minds of Amazon’s Jeff Bezos and Alibaba’s Jack Ma have propelled society into the age of domination of E-commerce.
E-commerce is commercial transactions made electronically on the internet. That being said, the growth of e-commerce had changed the landscape of how we buy and sell goods. Mainly, the effect of the pandemic lockdowns forced people to use online stores to purchase every products and delivered to them quickly without breaking health restrictions implemented by state and federal governments. Which led to a global market value of USD 5 Trillion in 2021.
E-commerce brands such as, Amazon, Walmart, Alibaba, and Shopify are dominating the industry today and replacing traditional physical stores because of their offering of fast transaction, delivery and competitive pricing. Moreover, the big companies mentioned previously would need to utilize outsourcing to make their business more profitable and easier to manage.
Technology and E-Commerce
Without technology, e-commerce would not exist. Being the backbone of the industry, the continuous adaption, and improvement of existing or new technologies will continue to expand the variety of services offered by e-commerce companies.
The truth of the matter is that e-commerce is a continuously evolving industry. There are about 12-24 million e-commerce websites on the internet with a multitude of choices of products and services being offered.
Technologies being used by e-commerce companies:
- Mobile commerce
- Electronic fund transfer
- Supply chain management
- Web marketing
- Online transaction processing
The Future of E-Commerce
A study conducted by Statista states that e-commerce will grow from USD 5 trillion in 2021 to USD 6 trillion in 2024. With those numbers in mind, the importance of e-commerce on our daily lives had cemented it as a necessity for most people. Being in the comfort of one’s home and have goods delivered quickly and conveniently.
Although, the dominance of Amazon as a industry leader remains unquestionable. The industry would probably be a saturated market because there are fewer barriers for entry means more independent or small online sellers, retailers, and wholesalers. On the other hand, a competitive market will drive innovation and maintain reasonable prices for products and services due to an unmonopolized industry.
Importantly, with global supply chain issues are increasing acquisition costs worldwide. Therefore, all e-commerce sites will increase their prices from products, handling fee, and shipping costs to consumers.
Outsourcing Opportunities in E-commerce
Outsourcing providers offer their services to almost all of the sectors or industries. However, e-commerce companies is the most attractive industry for outsourcing providers to enter. BPO providers are well-positioned to offers their services from small to large size e-commerce sites.
- Outsourcing roles for e-commerce
- Customer Service Specialists
- Logistics Specialist
- Data Analyst
- CRM Specialist
The roles mentioned above can help e-commerce companies to minimize their operational costs and balance their acquisition cost of goods. Thereby, maintaining a competitive advantage against competitors and pleasing consumers with their low retail prices.
Ultimately, the growth of e-commerce brings unprecedented opportunities for outsourcing providers. However, e-commerce businesses will benefit from outsourcing because it will lower their cost of doing business such as, operating costs and employee wages. At the end of the day, its a win-win situation for consumers, sellers and service providers.