Outsourcing

The first thing you need to consider is outsourcing. Should you hire an employee or outsource the service? Both methods have their pros and cons. You will find that not all positions can be outsourced. For example, if you need help packing and shipping and your inventory is stored at your location, you need to hire someone unless you plan to outsource your storage as well.

Outsourcing can even be less expensive than hiring an employee. Some outsourcing companies do not have monthly fees; they charge only when a service or transaction is done on your behalf. The per-service or transaction fee can easily be calculated to determine what your bottom-line profit margin or ROI will be per order. Outsourcing services are usually handled by a company and not an individual. Therefore, a team of people usually service your needs. This way, you don't have to worry about coverage if someone is sick or goes on leave.

Nowadays, every aspect of your business can be outsourced. The question is whether it should be done and whether it makes financial sense. Speak to other online stores to see what portions of their business are outsourced and whether they recommend a particular company. YStore Forums (http://newforums.ystoretools.com) is a great resource to chat with other Yahoo! store merchants.