Source Superstore [4/7]: Marketplaces and aggregators
The Source Superstore is now open! To celebrate this opening, we’ve produced this seven-part publication which explores why, and how outsourcing is the most powerful and transformative business tool in existence today. For this fourth part, we introduce the positive effects of marketplaces and aggregators on industries, and why outsourcing, until now, has not yet benefitted from this trend.
How and why outsourcing can transform your business
Don’t miss out on this seven-part publication which explores why, and how outsourcing is the most powerful and transformative business tool in existence today.
- Source Superstore [1/7]: Outsourcing’s past and future
- Source Superstore [2/7]: Growth of outsourcing is unstoppable
- Source Superstore [3/7]: You can’t afford not to outsource
- Source Superstore [4/7]: Marketplaces and aggregators
- Source Superstore [5/7]: Productised outsourcing services
- Source Superstore [6/7]: World’s widest range of outsourcing products
- Source Superstore [7/7]: Biggest range, best prices
Outsourcing for all
Outsourcing is probably the most powerful and transformative business tool in existence today. It can save you 70% on staffing costs, whitest driving innovation and growth. Not only that, outsourcing is a win-win for solution for all parties involved. It is a boost to the company, its employees, the community and country – plus it benefits the outsourcing supplier and its country as well.
Outsourcing has been a common practice for the big corporations for two decades, but was, until now, largely unavailable to the small and medium sized businesses.
Things are now different. Outsourcing has been democratised over the last 5-10 years, and is now cheaper, more accessible, and more flexible than ever.
Yet, despite the obvious advantages, as of yet, only a tiny fraction of the SME sector that is taking advantage of this incredible resource.
One of the main reasons for this slow uptake is the general lack of awareness, uncertainty and unease over exactly ‘what outsourcing is, and how it is done’. This uncertainty is not helped by the fact that there is very very little independent information out there to help people on this journey. That has now changed…
The world’s first outsourcing marketplace
Now, this has all changed. Outsource Accelerator is the world’s most authoritative independent information hub and marketplace for outsourcing.
Why a marketplace
The world is now awash with marketplaces and aggregator platforms. And this is for good reason. Marketplaces make it easier for consumers to search, sort, compare, and purchase products and services.
There is now a marketplace for virtually every product, and every sector.
We all know the famous examples, such as eBay and Booking.com, and of course, most people now book their flights and holidays on one of the dozens of aggregator platforms covering those sectors. Marketplaces now cover everything from clothing, to hotels, to crowdfunding to psychiatry – literally anything can be found in online marketplaces.
Common examples, of marketplaces and aggregators are:
- Amazon – buying books
- Booking.com – hotels
- Skyscanner – flights
- Expedia – combined travel curation
- Money Supermarket – consumer finance
- Mortgages
- Electronics sites
- And online food shopping
Types of marketplaces
Marketplaces can broadly be grouped into four types:
- simple, singular transactions
- complex or ongoing transactions
- consumer/retail focused
- B2B focused
Basic transactional marketplaces
Online purchasing has more traditionally veered towards simple and quick transactions. This is for good reason. It is much safer and easier to buy a $20 book online than it is a $2,000 ball gown. This is because the book is (i) a smaller transaction amount, (ii) a known product that isn’t likely to vary, and (ii) contains very few potential variables. Conversely a ball gown is complex, more expensive, and there could be a million things go wrong when you take delivery of the gown.
This is why traditionally, marketplaces have started and have been stronger in the simple transnational space. But of course, things evolve. As society gets more entrenched in ecommerce and internet-based consumerism, the online marketplaces extend their reach.
Complex transactional marketplaces
There are now many marketplaces that offer products of high complexity. Examples of more complex online transactions are:
- Personal finance, loans and mortgages
- Online custom-made wedding gowns
- Property portals and property investment portals
- Peer-to-peer and crowdfunding marketplaces
- And of course, Alibaba.
These examples show that it is indeed possible to provide effective marketplaces for complex purchases, and the success of these marketplaces show that they are well received by the public.
Consumer versus business
There are clearly more consumer-based online marketplaces than B2B marketplaces. This is most likely because the buying processes and cycles of businesses are longer, and more complex. Enterprise sales cycles are typically long and complex, they’re typically expensive, and typically require a lot of customisation. However, this is all changing.
Business marketplaces
Business marketplaces don’t generally have the broad appeal and adoption of consumer based marketplaces. However, business transactions are often more valuable, and more reliably repeatable. Alibaba, a Chinese (product) manufacturing platform, is likely the most successful B2B marketplace out there – and is one of the most successful companies on the planet. It’s simply connects Western businesses with Chinese manufacturers. The value of the Alibaba platform is that it brings a lot of clarity and simplicity to an otherwise very opaque industry. The company is now valued at over $500billion.
Equally, Linkedin is well known in the business community, and is offering more and more platform-based services from their platform.
There are also numerous crowdfunding, peer-to-peer marketplaces, and SaaS platforms which are also becoming big in the business community.
And of course, employment and job marketplaces have been dominant in the online space for some time now.
More transparent
The benefit of a marketplace is that they aggregate a lot of different services under one roof. This means that a marketplace offers its customers increased range, transparency, standardisation of pricing, reliability, easier transactions, and a better environment from which to research, compare and educate themselves about the products…. It is for this extensive list of reasons that marketplaces tend to be the destination of choice when people are making buying decisions. Platforms, aggregators, and marketplaces – make otherwise opaque markets more easily navigable for clients.
The Source Superstore marketplace
Strangely, there is no aggregator marketplace for outsourcing. And outsourcing really needs a marketplace, more than most sectors…
Outsourcing is a complex industry. It is full of ambiguity and uncertainty. In 99% of cases, the consumer is in one country and the supplier is in another country. People have to have trust and engage with people of different cultures, different languages, and from different legal environments to start their outsourcing journey. Prices are generally very variable, and an outsourcing relationship is typically an ongoing relationship with no definable outcome. Combining all of these factors makes it a scary proposition. Outsourcing is also typically an expensive purchase, which just adds to the burden.
It is for these reasons that people find the concept of outsourcing a little daunting, and might hesitate to take that first step…
These might seem like small issues to some, but it is this initial friction is stopping millions of businesses from starting their outsourcing journey.
The outsourcing superstore
The Source Superstore is changing all this. With productised services the Superstore is making the initial phase of exploring and engaging with outsourcing easier. It is focused on making the stepping stones into outsourcing smaller and less daunting.
It does this through three simple functions:
(i) Clearly definable prices
The Superstore prices are set, so that the buying decision is made easier. A quantified explicit price means that people know the extent of their risk and exposure. People are more comfortable making a decision when there are very clearly defined parameters.
The Superstore prices range from just $199 to $5,999, which are significantly less than the typical prices discussed in outsourcing. This is because a standard outsourcing engagement typically involves 1-2 full time staff, on an ongoing basis which translates to at least a $20,000 – $50,000 proposition. This is way too much for an initial outsourcing exploration, and this is why the Superstore provides simple products at significantly smaller price points.
We also offer great deals, and discounts, plus some products offer a cash back opportunity. After all, everyone loves a good deal!
How much does outsourcing cost?
How much does outsourcing cost? This is typically an incredibly difficult question to answer. And this is why it is so difficult for many businesses to get into outsourcing. When things aren’t clear, decisions are either postponed, or put off. Now, with the Superstore, outsourcing prices are clear… We are doing our best to simply this answer too pricing, and eventually, we will be providing a price list for you that covers the industry. Help us on this mission.
(ii) Reliable verified suppliers
The Superstore products are supplied by the top outsourcing suppliers, from the top outsourcing designation – Philippines. The products and suppliers are fully vetted before they are listed in the Superstore.
We require that there are clearly defined deliverables, and a clear refund policy if expectations are not met.
The Source Superstore introduces trust, certainty and ease, into an otherwise ambiguous disaggregated marketplace.
(iii) Definable outcomes and product range
The Source Superstore repackages typically intangible services into a more definable productised service. The Superstore is making outsourcing deliverables more certain and with an increased focus on output instead of hours and roles.
Outsourcing is meant to be an ongoing scalable relationship, and the Superstore recognises this. The Superstore is not trying to change what outsourcing is. The Superstore does not want to sell project based work. But we believe that the easiest way to get people started in outsourcing is by offering a great range, of bite-size easily-transacted services. Once those services have been successfully delivered to the client, then an ongoing outsourcing relationship will naturally blossom from the initial engagement. It is far easier discussing ongoing services once people have worked together already – it is the best ‘job interview’ in the world…
Purchasing a productised device from the superstore, is an easy initial step, but then it would likely evolve into a more standard outsourcing relationship.
Broadest range
The outsourcing superstore covers the broadest range of outsourcing products on the market. It covers all outsourcing services, across all outsourcing models, and includes auxiliary outsourcing services (incorporation, advisory, training etc).
Standardising prices and services
Standardising prices, and services, makes it an easier, more reliable, and more transparent marketplace for customers to navigate. This will be great for customers, will increase adoptions, and will be better for the industry as a whole.
Read the full seven-part publication
Don’t miss out on this seven-part publication which explores why, and how outsourcing is the most powerful and transformative business tool in existence today.
- Source Superstore [1/7]: Outsourcing’s past and future
- Source Superstore [2/7]: Growth of outsourcing is unstoppable
- Source Superstore [3/7]: You can’t afford not to outsource
- Source Superstore [4/7]: Marketplaces and aggregators
- Source Superstore [5/7]: Productised outsourcing services
- Source Superstore [6/7]: World’s widest range of outsourcing products
- Source Superstore [7/7]: Biggest range, best prices
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