How the Right Ecommerce Service Provider Shapes Long-Term Growth

While running an ecommerce store may seem like a joy, anyone who has tried it out understands that running an ecommerce store has many dimensions to it – you aren’t simply selling products. You’re managing your tech stack; creating & executing your marketing campaigns; fulfilling your orders with your fulfilment partner; providing good customer service; managing your customer data and growing your business; and in many cases you are doing all 6 at the same time. This is where working with an experienced ecommerce service provider can help you really see results.

Many businesses today are outsourcing their ecommerce needs to ecommerce service providers, rather than trying to run everything themselves and burning themselves out in the process (and having to hire them again later).

What does an ecommerce service provider do?

An Ecommerce Service Provider has multiple roles depending on the needs and stage of each customer’s business. For example, customers may require assistance with anything from setting up their online store to optimizing a platform, implementing digital marketing campaigns, managing an online marketplace, tracking inventory performance, or receiving ongoing technical support.

The goal of this service is not only to get a company “online,” but also to build a successful ecommerce business by providing access to the right target market, generating sales conversions from website visitors or potential customers.

As reported by Statista Global Ecommerce Sales are projected to be increasing significantly each year (Fig 1). The level of competition is increasing every year as well. The importance of having access to the right experience in ecommerce cannot be understated.

(Source: Statista – Global Ecommerce Market Overview)

Ecommerce Service Providers & Their Role in Business Success

The majority of ecommerce challenges arise due to a lack of knowledge and direction, not due to a lack of effort. Algorithms continue to change and evolve, platforms change their policies and rules, and customer behaviour continuously changes as well.

• An ecommerce service provider with experience offers retailers:
• Eliminating the potential for expensive trial and error decisions;
• Keeping compliant with platform regulations and policies;
• Providing optimisation of stores through the use of actual performance data;
• Allowing businesses to focus internal resources on the development of products/brands.

Companies like Caasto support retailers by offering structured ecommerce services built around data-driven decision-making rather than guesswork.

Main Functions of E-Commerce Service Provider

All recurring functions to any degree are defined in terms of five specific operations.

Platform Setup and Store Enhancements

Store Set Up involves choosing a platform (Shopify, WooCommerce, etc.) and configuring specific items like payment gateways, enhancing site speed for mobile devices, and mobile responsiveness of the new site.

Research conducted by Google indicates that page load speeds are highly correlated to conversion rates on mobile devices, according to their website performance research.

Marketplace Functionality

E-commerce businesses selling through popular online marketplaces such as Amazon, Flipkart, etc., will approach the process of maintaining a store differently than an e-commerce business would if selling from their own stand-alone web store. There are many ingredients to this process such as the types of products, proper listing, appropriate keywords, the use of great images and fulfilling all the listing rules. An experienced e-commerce service provider understands the intricacies involved in these types of situations.

Digital Marketing & Traffic Development

Visibility is critical for driving brand awareness and generating sales through various forms of digital media (SEO, PPC, Email, Remarketing), which allows businesses to access customers without losing valuable dollars or their business by running ineffective campaigns directed only at a limited audience.

Businesses that leverage data driven digital strategies have higher ROI according to marketing benchmark studies done by HubSpot.
(Source: HubSpot Marketing Reports)

Analytic Reporting & Performance Monitoring

Good business decisions come from great data. Knowing how users interact with your website (user interaction), your conversion percentages and all of your drop off points helps to make informed and appropriate refinements to your digital marketing strategy over time.

The flow chart below demonstrates how an E-commerce Service Provider will traditionally support growth

Business Goals Set

↓

Platform/Market Analysis

↓

Store Setup/Optimisation for Listings

↓

Traffic Generation SEO/Advertising/Email

↓

Conversion Optimisation UX/Content/Trust

↓

Performance Tracking/Reporting

↓

Ongoing Optimisation & Scaling

This repeatable cycle enables businesses to modify their e-commerce solution on an ongoing basis instead of having to recreate it every time they want to grow or modify their business strategy.

Common Mistakes Businesses Make Without Expert Support

Some common mistakes that companies make when they lack the expertise from an expert include: 

• Using the wrong platform for the type of goods they are selling. 
• Not utilizing SEO and solely relying on ads to drive potential customers to the website. 
• Poorly designed products and/or unclear messaging about those products when presenting them to potential customers. 
• Not keeping track of any metrics beyond simple sales. 

Although these types of issues may not cause initial harm, they create limitations on how much a business can grow over time.

Final Thought

The eCommerce industry continues to grow rapidly in complexity and competitiveness. Engaging the services of the right eCommerce service provider will enable businesses to successfully find their way through this complexity with improved clarity and confidence.

Also, because businesses can take a more proactive approach to their growth strategy through the external support and expertise of a professional eCommerce supplier like Caasto, rather than simply reacting to issues as they develop, these companies have the tools necessary to support their long-term success regardless of how eCommerce platforms, buying behaviour and market trends may change over time.