Ecommerce stores are a common platform for companies to sell their products. Many businesses use ecommerce stores to expand their reach and can use their online store to claim R&D tax credits by improving their website.
R&D tax credits are dollar-for-dollar credits that reduce a company’s tax liability and could result in significant savings. Ecommerce companies can claim R&D tax credits by utilizing innovative methods to improve website technology.
Companies must pass the IRS four-part test to qualify for the R&D tax credit. The four-part test requires qualifying research activities (QRAs) to involve eliminating uncertainty, creating new or improved business components, technical orientation, and experimental processes. Some ways your ecommerce store may be eligible for R&D tax credits include the following:
Implementing Live Chat Software
Including live chat software in your website can improve your customer service experience by allowing visitors to get their questions answered promptly, potentially resulting in increased sales and customer loyalty. Implementing real-time chat requires technical skill and multiple rounds of testing to ensure it works properly.
Add Payment Options
Having multiple payment options is a great way to increase accessibility for consumers. Some shoppers prefer a payment method that allows them to skip entering credit card information, like PayPal or E-wallets. Consumers may become frustrated by long checkout processes, and incorporating these payment options can result in a seamless process and reduce the likelihood of order abandonment.
Mobile Optimization
Mobile shopping is increasingly becoming commonplace, and your store can appeal to on-the-go shoppers through mobile optimization. A mobile-friendly layout can improve user experiences by making websites load faster, reaching more users, and improving search engine placement.
Increase Website Speed
Improving website speed leads to increased customer satisfaction and can be the deciding factor for potential customers browsing your website or leaving. Companies can increase their ecommerce store’s speed by reducing the page size, switching to fast hosting servers, and including a content delivery network so visitors can load content from local servers.
Track Labor and Expenses
Ecommerce businesses can ensure they have the necessary documentation by thoroughly tracking all in-house and contract labor. For an ecommerce store to claim R&D tax credits, it must document and report QRAs. In addition, companies must track R&D-related expenses such as wages, salaries, and supplies.
Figuring out all the steps to qualify for R&D tax credits can be challenging for ecommerce businesses. MainStreet’s R&D tax credit experts help your business claim all the credits it is eligible for. Contact us to start saving money today.
