How can outsourcing transform Customer Experience (CX) for the Retail and E-commerce industry?

Sneha GautamRetail & E-commerce

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Predictions of global economic downturns and uncertainties have shown clear signs of a looming recession in the upcoming months.

Although economists are disputing, amongst themselves, whether there will be a recession, e-commerce business owners should prepare for the threat of the recession. Any downturn in results could lead to inflation, disruption of the supply chain, and massive layoffs. Even with speculations of a recession, there is a sharp decline in consumer spending and a reduction in economic activity.

E-commerce owners and small businesses need help to survive the market and maintain their performance during the economic slowdown. What can e-commerce retailers expect, and how can they prepare for the negative impact?

This blog uncovers the impact of the recession on e-commerce, the underlying reasons behind layoffs, and how outsourcing CX plays a massive role in overcoming the situation.

A wave of global layoffs among E-commerce / Retail giants

Negative growth for the worldwide economy in 2023 has compelled several retail firms to lay off staff across offices worldwide.

E-commerce companies like Amazon, H&M, and Shopify have shaved off thousands of employees in the last few months. On the other hand, Sneaker resale site StockX became one of the first retail businesses to lay off its staff in June 2022.

Check out some retail giants that either announced layoffs or have already laid off their workforce.

Amazon: The e-commerce giant stated that it would lay off more than 18,000 jobs in the United States, and the company plans to downsize further. The company has already laid off 2,300 employees in Seattle and Bellevue.

H&M: In November 2022, the company announced it would cut off its 1500 job roles to save costs and improve business efficiency. As per the company’s statement, this cut-off would enable them to save around $188.2 million.

Gap Inc.: Majorly operated in San Francisco and New York sectors, the e-commerce/retail had already cut off around 500 corporate roles in September 2022.

Rent the Runway: The New York-based fashion retail giant cut off a quarter of its employees in September 2022. The company also reported a net loss of $33.9 million in the second quarter of 2022.

Corporate layoffs leave a lasting impact on CX

Downsizing staff is directly and negatively impacting CX across different industries. With the workforce supporting customer support, service, or other aspects related to CX downsized, service quality is sharply declining.

Around one-third of Americans say that announcing a company’s layoffs has impacted their perception of the brand. Consumers evaluate a brand’s ability to meet their demands based on their health and ability to sustain their workforce.

Suppose a company releases a layoff statement in public. In that case, 45% of the customers indicated their perception of the company’s core values would be negatively impacted. In comparison, around 40% would have a negative image of the company’s leadership if the workforce is laid off roughly.

Outsourcing CX helps e-commerce owners navigate safely despite the economic downturn

Committed and dedicated employees serve and handle customers better, leading to a satisfied and happy client base with the company’s products or services and making employees realize the worth of their work.

  • E-commerce must find ways to cut costs without undermining the quality of its customer service. Hence, CX outsourcing is a savior.
  • Engage with a trusted outsourcing partner to support marketing, sales, e-commerce, customer data, and service.
  • Automating customer services is yet another cost-effective way to optimize customer services. However, e-commerce needs a trained workforce to address complex queries and ensure quick resolution of customer issues.
  • Outsourcing CX is an ideal way to save time, costs, and effort, as several tedious or non-core jobs are allocated to a third-party service provider.
  • Outsourcing customer-related processes help businesses to amplify and expand their core offerings.

Outsourcing CX benefits for e-commerce companies

Increased Customer Retention Rates: Outsourcing companies have a team of e-commerce specialists worldwide with rich experience in customer service, delivering promising and desired results.

Omnichannel Engagement: Smart agents, automation capabilities, and digital tools help deliver a seamless, consistent, and personalized experience across multiple channels like email, phone, chat, social media, and e-commerce portals.

Reduced Costs: The most favorable benefit of CX outsourcing is saving money on the cost of maintaining an in-house team. Outsourcing companies are well-equipped with resources for staffing, training, and ramping up or down as per the changing needs of e-commerce companies.

Growth Drivers: Another advantage is that they allow companies to focus on their core mission, giving them more room for critical tasks such as market expansion and sales growth plans.

Critical factors while choosing an outsourcing CX partner for your e-commerce business

While looking for a CX outsourcing company, it is vital to clearly understand what you need and what you’re getting from them. Here are a few points to consider:

Proven Track Record: Ensure that a respective outsourcing company has ample experience delivering successful CX services to the retail and e-commerce industry. You can ask for references and case studies or details of the pipeline.

Infrastructure and Technology Capabilities: Infrastructure and technology focus is a critical requirement for any CX service provider. Assess the service provider’s economic health, digital capability, and the strength of dedicated resources and Subject Matter Experts (SMEs) to support different processes and technologies.

Compare Pricing: The most significant advantage of outsourcing is that saving costs doesn’t change. Ensure that the CX outsourcing vendor offers a competitive pricing structure.


Looking at the possible recession in 2023 and a tremendous increase in e-commerce/retail layoffs globally, finding a suitable outsourcing solution is the need of the hour for the retail and e-commerce industry. IGT Solutions is a leader in next-gen CX services to retail and e-commerce clients across the globe. As we combine our technology, digital and BPO capabilities, clients experience visible results and accelerated business outcomes with higher customer satisfaction, business growth, and enhanced revenue. To learn more about our CX services for the retail and e-commerce industry, visit our page.


Mark Anderson has over 25 years of experience in the customer experience (CX) and business process outsourcing space (BPO). He has provided onshore, nearshore, and offshore delivery services to clients in the E-commerce/Retail industry in the US. Mark is eager to utilize his expertise to help enhance your customers’ experience.