E-commerce, also known as e-business, refers to all activities of making money through the Internet. Via global data transactions and information systems, businesses are making money by selling products or services. Based on an eMarketer survey, the sales in the e-commerce domain have grown from 54.5% in 2017 to 60.1% in 2020. This information means that customers all over the world are inclined to shop for goods and services online. To build an e-commerce business in 2021, you no longer need to hire an in-house development team – outsourcing website development is easy and accessible. In the following article, we will shed light on e-commerce web development, its costs, and define steps towards creating an impeccable web application through outsourcing.
What Is Outsourced eCommerce Web Development?
To begin with, the outsourcing model refers to the activity of delegating the entire or a part of a project to a third party. The key benefit that enables a business to build a custom website is e-commerce development cost and quality. The principle of outsourcing lies in establishing a contract with a vendor, setting up project requirements, and managing the development process on the outsourcing team.
Outsourcing e-commerce websites means having a remote team of experts with previous experience in building similar platforms. Specialists who have dealt with e-commerce projects know which tech stack to use and which features and functionalities will make your platform competitive and unique.
The Benefits of Outsourcing an Ecommerce Website Development
Before we investigate the process of building an outsourcing development team for e-business, let’s see the advantages of this business model.
Lower hiring costs
The aspect of saving expenses on labor remains relevant for both large and small businesses. Typically, the cost of eCommerce website development in Eastern European countries like Poland, Ukraine, or Romania is considerably lower than hiring local developers in the United States.
Large talent pool
You may discover a significantly bigger pool of specialists to execute your project. Based on numerous sources, Ukraine has the largest number of developers with a wide range of experts who are dedicated and professional.
Focus on the core business activities
Outsourcing allows you to run several projects at the same time. This advantage enables you to grow your business faster and more efficiently.
Opportunity to go global faster
If you outsource a team from Eastern European countries, it means that a product may be launched and popularized on this continent much quicker. By applying concrete marketing strategies, your e-commerce business may gain an audience in the European market in no time.
Types of Outsourcing
Outsourcing is a general term for the business model of hiring remote experts. Let’s explore its types.
Flexibility and cost-effectiveness are the key drivers why companies hire freelancers. However, since this model doesn’t involve signing a contract with the developer, there is a risk of losing an expert without reason at any time.
Even though outstaffing releases you from hiring, selecting, recruiting, and motivating employees, this model assumes you have a technology background since you will be managing the project. Miscommunication often brings development delays and inconsistencies in following project requirements.
Referring to an outsourcing agency means having an established team of developers and, most importantly, a project manager who controls all stages of the development process, reports to you if any clarifications are needed, and ensures the end product’s quality. The main difference between outsourcing vendors and the outstaffing model (since they are similar) is that outstaffing requires you to manage project execution through direct interaction with a team. Outsourcing means a product manager takes care of your project and your team.
5 Steps How to Outsource Ecommerce Development
There are some general but essential factors to consider to make a good outsourcing decision. Following these simple steps will help you build a professional e-commerce development team to meet your business needs.
Step 1 Define Your Goals and Needs
Hiring a team always starts with brainstorming and creating a detailed document to set the goals and product expectations. At this stage, your task is to establish requirements regarding team members (what expertise you need), technical stack (if possible), timetable, and other related conditions.
Step 2 Explore the Market and Choose an Outsourcing Vendor
While analyzing the market for a possible outsourcing company, consider the following factors:
- company’s experience in e-commerce projects (search case studies and portfolio on the website)
- define their key specialization and decide if they may bring you the desired e-commerce platform
- get acquainted with feedback from their clients
- see their rating
Step 3 Communicate with a Vendor
Communication is key. Ask questions, clarify all matters, and provide as much information on the future project as possible. Typically, this negotiation occurs with a product manager, business developer, or CEO of the outsourcing vendor. It would be useful to visit the outsourcing agency after completing online communication successfully.
Some outsourcing vendors offer you CTO (Chief Technology Officer) services if you lack a technology background. They may guide you through which tech stack you need, which specialists you need, and clarify features and functionalities to build a competitive and custom product.
Step 4 Execute the Project in Small Tasks
It is better to split the project into small sub-projects to gain efficiency and productivity throughout the entire development process—for example, set milestones for project specification document development, design process, development, and testing.
Step 5 Sign a Contract
Drawing up a contract protects you from undesired changes while outsourcing an e-commerce website development. In this contract, make sure you indicate the agreed costs, timetable, technical requirements, and other information. A great benefit of the outsourcing business model is that it allows you to scale up or down a project easily, set an excellent communication with a product manager, and proceed with product maintenance and support after the deployment.
Outsource eCommerce website development services are used not only by startups and small businesses but also large technology companies such as Samsung, Skype, and Alibaba. The critical thing to keep in mind while outsourcing e-commerce projects is that this industry is quite dynamic in development. To stay aboard, you need to keep your hand on the pulse of all audience needs, trends, and fashions happening in the marketplace. A professional and dedicated outsourcing team will also provide you with analytical services. This process will be ongoing and productive.