How an Australian E-commerce Brand Cut Customer Support Costs by 57%

An Australian e-commerce brand cut the monthly cost of running its customer support function from A$25,000 to A$10,750: a 57% reduction worth A$171,000 a year.

As sales grew, so did order-tracking questions, delivery enquiries, returns and refund requests, and promotional peaks made staffing hard to forecast. Meeting that demand with local hires alone meant support costs rising as fast as sales.

The brand set up a dedicated customer service team in the Philippines through Offshore 24/7. Routine enquiries moved offshore. Complaints, exceptions and commercial decisions stayed with the in-house team in Australia.

The challenge: growing sales put pressure on customer support

The brand served customers across Australia, and every lift in orders brought a matching lift in enquiries. Customers needed help tracking deliveries, understanding products, changing orders and navigating returns and refunds.

Most enquiries were straightforward, but each one needed attention, documentation and, often, coordination with fulfilment, warehouse or finance. Promotional campaigns and seasonal peaks then pushed volumes up suddenly, making staffing hard to plan.

Hiring more local staff meant recruitment, employment on-costs, training, equipment and management time, so support costs rose in step with sales.

The brand needed to handle more routine enquiries without costs climbing at the same rate, and without slower responses or a weaker customer experience.

The solution: a dedicated offshore customer service team, with exceptions kept in Australia

Offshore 24/7 set up a dedicated customer service team in the Philippines, working inside the brand's existing policies, systems and escalation procedures.

Clear rules for every enquiry

Before handover, the brand documented which enquiries the team could resolve independently and which needed internal approval. A knowledge base covering products, shipping, payments, returns, refunds and warranties, plus approved response templates, kept answers consistent.

A phased handover

Offshore 24/7 recruited the team, and training covered the brand's tone of voice, support software, product information and escalation procedures. Early interactions were reviewed closely, and responsibilities expanded once accuracy was consistent.

The results: 57% lower customer support costs

The brand's customer support function now costs A$10,750 a month instead of A$25,000: 57% less, saving A$171,000 a year.

The local cost includes salaries, superannuation, leave, recruitment, training, equipment, software and management overheads. The offshore cost includes Offshore 24/7 service fees, onboarding, equipment, software, supervision and quality assurance. Both cover the same channels, enquiry volumes, operating hours and responsibilities.

Cost saving = (A$25,000 − A$10,750) ÷ A$25,000 × 100 = 57%

Service held up as costs fell: average first response time dropped from 8 hours to 2 hours.

Order-tracking and returns questions were swallowing our team's day, especially around sales events. Now the Philippines team clears the routine tickets, and our in-house team handles the complaints and exceptions that genuinely need them.

Savings vary with enquiry volume, role, scope of work and local salary benchmarks.

How the brand protected customer data and accuracy

Customer service staff see names, addresses, order histories and contact details, so the brand put clear controls in place:

• Role-based access to the support platform and order records, with secure authentication
• Approved devices only
• Confidentiality requirements and documented data-handling procedures
• Payment information handled only through approved systems
• Escalation rules for disputed transactions, suspected fraud, serious complaints and privacy concerns
• Quality reviews against agreed standards for response time, accuracy and documentation

Online retailers should review their privacy and contractual obligations before offshore staff access customer information, including Australian Privacy Principle 8 on cross-border disclosure.

Is an offshore customer service team right for your e-commerce business?

The setup works best when a business has:

• Enough recurring enquiries to justify a dedicated support team
• Product, shipping, refund and escalation rules that are clearly documented
• Internal staff with capacity to oversee quality and handle complex cases

Read more about offshore customer service staff and outsourcing for e-commerce businesses.