Changing consumer trends, the increasing sophistication of the online marketplace and new risks or regulations continue to provide technical challenges for e-commerce companies.
In some cases there is no tried or tested way to resolve them and developers may be required to come up with innovative solutions.
Work of this type may qualify for R&D tax credits, which means that the business can claim tax relief or – if you are a pre-profit or a loss-making company – you can even claim back cash from HMRC.
Here are four key challenges which may require these type of solutions:
1 – Customer insights
Retailers are generally getting better at managing big data and using data mining to understand customers’ behaviour and preferences. While there are a lot of tools available, from Google Analytics to more specialised software, many companies are developing their own programs. Not only will this provide bespoke information, it also ensures greater privacy as they do not have to share data with a third party such as Google.
2 – Managing stock across multiple outlets
Having a great website is no longer enough – successful retailers now need to have a presence across multiple channels such as eBay, Amazon and Google’s shopping facility. Retailers using these channels are expected to maintain certain stock levels, yet with sales being made simultaneously via different sites, managing inventory can be a real headache – particularly for small retailers. While there are commercial inventory management solutions available, they can be expensive and may not be ideal for your needs. Online booksellers have become masters of the game in this respect, but it is a skill that firms in other sectors are still struggling to learn.
3 – Security and data privacy
Security and data privacy will be one of the biggest challenges in the year ahead, with the growth in cyber attacks and the introduction of the General Data Protection Regulation (GDPR), which will impose heavy fines for breaches. Many big e-commerce retailers are now developing their own fraud detection systems. Safeguarding data and preventing fraud will be critical to maintain public confidence in e-commerce.
4 – Managing traffic spikes
Dealing with fluctuating demand remains a key consideration for the big retailers, as viral marketing campaigns and celebrity endorsements – dubbed the ‘Kate Middleton effect’ in the fashion trade – can generate sudden spikes in traffic. While more retailers are moving to cloud-based hosting, which allows them to access greater capacity as and when required, it can create technical issues which developers will need to resolve.
R&D tax credits exist to encourage companies to meet challenges like these. However the rules are complex and it is best to get expert advice in each case.
Do you recognise any of these situations?
Or have a project that may fit the bill? If so, speak to a specialist adviser as interpreting the rules correctly and using the right terminology is crucial to success with any claim.
Adrian Williamson has over 30 years’ experience as a software engineer. He is now an expert on R&D tax credits, advising clients in web and app development, third party integration, IT infrastructure, SEO and cloud technology.
