The practice of contracting a third-party provider to manage aspects of buyer support related to the large online marketplace’s transactions and inquiries is a significant operational strategy. For example, instead of directly employing all customer service representatives, the e-commerce giant may partner with external companies specializing in call centers and support functions.
This approach offers several potential advantages, including cost reduction through access to lower labor rates in different geographic locations. It also allows the core business to concentrate on strategic goals such as product development and market expansion, rather than managing a large internal customer support division. Historically, this model has been adopted to achieve scalability and flexibility in response to fluctuating demand.
