Digital Marketing

Why Should Smaller E-Commerce Companies Outsource Data Analysis

Why Should Smaller E-Commerce Companies Outsource Data Analysis

The consistent change in consumer behavior and marketing strategies affects the dynamic of the e-commerce sector. With more than 2 billion digital buyers globally, it is challenging to stay at the top of the market all the time.

So, the best way of conversion rate optimization for businesses is to rely on data and analytics. Data-based business insights help to understand online customer behavior and gauge the changing marketing trends.

For prominent brands like Amazon and others, setting a whole dedicated team for data and research is no big deal. But same cannot be said for smaller e-commerce retailers.

Reports say that around 77% of small e-commerce companies restrict themselves to limited business insights from Google Analytics.

While we understand that hiring a team of data scientists and analysts for full-scale data is not feasible, e-commerce analytics can be outsourced from various digital marketing agencies that provide data analytics services.

What is e-commerce analytics, and why are they relevant?

E-commerce analytics is a process of harnessing a large volume of data and insights to comprehend market trends, customer behavior patterns, sale patterns, etc. This data is studied to derive the values which help to make marketing and investment decisions.

Analytics help in better customer retention. Insights from these data provide information on customer buying pattern, their likes, preferences, among others.

This helps build online strategies for customer retention as nearly 80% of company revenue is generated from loyal, existing customers.

SEO management is a big part of digital marketing. Based on SEO, content, images, and advertisements are designed online. Data analytics helps to measure cost-per-click, click rates, conversion rates, search volume, etc.

Why should businesses outsource data analytics?

To get the maximum sales and customer engagement, smaller companies need to focus on building a niche customer base. This is the realistic way to stay ahead in this tight, competitive market.

Outsourcing data from a third party helps in several ways.


As mentioned earlier, it is not viable for smaller companies to invest in a whole team of data scientists and analysts. Outsourcing analytics from a data analytics team will have project managers, SEO experts, analysts, among many others. You can pay a certain amount per month without having to worry about paying their salary individually.

Focus on your business goals

Data sourcing and strategies take a lot of time and effort. By outsourcing these functions from a third party, you can focus your time on achieving your business goals like customer retention and administration.

The data analytics team’s job is to sort out patterns from a huge clutter of data. These complicated data sets can take a lot of time. With experts, the insights become a valuable and relevant factor for the decision-making process.

Reaching the right customers.

Today data is crucial for customer-centric companies, especially in the B2C sector. Every company deals with thousands of customers. The only way to achieve the right customer is by segmentation, targeting, and positioning at the right time through the right channels.

A recent survey shows that 55% of the companies who hire a third party for outsourcing data have problems with the internal staff. Some have stated that the internal team is often unable to collaborate with the company’s analytics requirement, which leads to lower ROI.

Data security

As an e-commerce company, your business data is THE most valuable asset. Catalogs, customer profiles, purchase orders, history, upcoming designs—losing a single data can lead to a massacre.

Data science consulting companies invest in the latest technology required to keep this massive storage of data secured. They deal with this every day, so it is their primary responsibility to have efficient data management and data storage units.

More accuracy with experts

No matter how much you do your research, professional data analysts are equipped with various tools to interpret, sort, and visualize volumes of e-commerce data. They are the expert in their field.

Hiring a third party for outsourcing data will save you time and energy. They usually work as a team to evaluate a list of data and use the tools that suit your business.

Honestly, bringing in a third party for outsourcing your e-commerce data will provide you with insights that will help to scale your business in the right direction of growth.

It isn’t easy to find the proper result-oriented digital marketing and data analytics solution in the market today. Thus, it is essential to find a web development company that truly understands the importance of analytics and insights for business growth. If you are looking for an all-inclusive approach to digital marketing, contact KOL Limited.

About the author

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I share technology, business, and personal development insights as a guest author. With a background in computer science and tech industry experience, I offer practical tips and actionable advice to enhance skills and achieve goals. Whether it's optimizing productivity, improving mental health, or navigating the digital world, I'm committed to helping others succeed. When not writing, I explore new technologies, read about industry developments, or enjoy the outdoors.

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