Are Labor Costs Growing Faster Than Your Ecommerce Business?

Are Labor Costs Growing Faster Than Your Ecommerce Business?

AxL has end-to-end ecommerce experience and we understand the needs of your online business. If it has happened in ecommerce, we have seen it and have experienced it. We know what it takes to acquire top-tier talent so you can scale your online business quickly and save on overhead along the way.

Are your labor costs increasing at a faster rate than your company’s growth?

The #1 goal of every ecommerce business is growth. Growth just means that you are reaching more people with your product or service. Ideally, this means more profit for your business, but the truth is, sometimes profits and growth do not increase at the same rate. Sometimes the costs associated with growing your business can chip away at the profits. One of the biggest contributors to this is labor – the national shortage of labor and the rising costs of labor. If your labor costs appear to be increasing at a faster rate than your business, it’s important to investigate why. After you’ve figured out how much you’re spending on each new hire, you can start looking for ways to reduce those costs.

Traditional labor costs keep growing over time.

Hiring isn’t easy and it takes time away from other areas of your business. Posting the job online, waiting for candidates to apply, sorting through the stack of resumes and on and on. There are costs associated with all of these pieces but the true labor costs come once you find the right candidate and you hire them. Salary & benefits kick in, but there are other costs that employers sometimes forget to add into the labor cost equation. Managing them, training them, office space, technology, turnover, rinse and repeat. These costs of traditional labor are only going to keep rising over time.

Let outsourcing do all of the heavy lifting.

Outsourcing is one of the most effective ways to reduce these costly labor expenditures at your business. At a fraction of the cost of hiring an in-house employee, a high-quality outsourcing company can assist with a number of critical areas of running your business. One of the reasons you can receive support for less money is that you can cut down on many of your overhead expenditures by outsourcing. You don’t have to provide benefits, office space, technology requirements, etc.. Instead, you simply pay for the tasks that you require. Even better, you won’t have to deal with the constant training and management that in-house personnel require. You only work with your contact at the outsourcing company and they do all of the heavy lifting for you. 

See how outsourced labor solutions can benefit your ecommerce business.

It is normal for costs to grow as your company grows. However, you do not have to accept high labor costs and a declining profit margin in today’s business climate. AxL supports ecommerce businesses with staffing for a variety of roles including customer service, engineering, and web design. See how AxL outsourced labor solutions can benefit your ecommerce business. We’ll answer all your questions about outsourced support, our recruiting and training practices, and how exactly AxL can help you lower overhead expenses, so you can grow your business.