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Crucial Role Of The R&D Center For The Ecommerce Industry

A woman running an ecommerce business on a laptop at a desk.

Forward-thinking eCommerce companies have always relied heavily on software R&D center services.

A software R&D center meets the IT needs of a company, with a specific focus on working closely with developers to solve challenges and meet goals. It’s an essential alternative to having an in-house team that may be located in another country. 

In this article, we’ll dig into research and development services, their role in eCommerce, and why every brand should consider working with an International R&D Center to improve their product. 

What are the Benefits of Software R&D Center Services?

The main benefit of an R & D center is the cost savings it brings to eCommerce. Recruiting teams internally requires investment in recruitment services, lucrative salary packages, hardware, software, and of course, premises to work from. A software R&D center provides everything you need without the time or financial constraints you may experience hiring a team on your own. 

We all know that there is a real shortage of skills in the IT sector and that recruiting the best talent in the industry can be a challenge, especially for smaller companies and start-ups. This process may get even more complicated when developers are required to grow your business or conduct exploratory research in another country or industry. 

Working with an R&D center is often the only way to access the top talent skills needed for your business. 

Other eCommerce businesses turn to R&D to expand their businesses in other countries. By hiring an R&D center local to the area they are trying to break into, companies can extend their reach beyond their current location. The R&D center has a closer understanding of the country and target market than others and can help brands expand into new regions. (It’s also an excellent way to build brand awareness about a company in that unique region.)

What does a Software Research & Development Center Do?

R&D centers assist eCommerce companies in several ways, including building new products, streamlining operations, or making improvements. At the heart of it, an R&D center is designed to foster innovation and give a business a competitive edge over others. 

R&D is very common in the tech industry. Firms need new software, solutions, and products to stay ahead. There are usually a few different forms of R&D to consider, including basic research and development or exploratory research. This involves expanding the company’s knowledge about a specific concept, subject, or technology. Firms may choose to explore how AI can assist eCommerce businesses with no practical application in mind, but this could aid the company down the line. 

Applied R&D, on the other hand, is research undertaken with a specific need, process, or objective in mind. R&D is about gaining a broader understanding of a topic, while applied research is much more narrow and focused. Businesses use R&D when they have a specific goal, e.g., finding a new system to improve their eCommerce offering or adopting a new recommendation engine. 

R&D isn’t just the domain of large organizations and mega-corporations. Yes, bigger corporations have bigger budgets and tend to spend more on R&D. Amazon, for example, spends billions on innovation. Other large businesses have their R&D departments or agreements with prominent universities in their location to carry out R&D on their behalf. That doesn’t mean that small companies can’t or won’t use the services of an R&D center. 

While small businesses don’t have the budget to run an in-house R&D department, they still need to innovate. Using an R&D center may be the only way to access the research they need at an affordable rate without in-house staff. Arrangements may vary – smaller firms may use the engineers and equipment to carry out their ideas or ask firms to research concepts on their behalf.  

The risks of R&D

Research and development are ongoing, and the deliverables and outcomes may vary. There are no guarantees that the team will deliver an innovation that will become profitable. They may discover that the ideas the firm had simply weren’t viable, to begin with and that they should be dropped. This means that the firm invested money in a venture that just didn’t pay off. 

However, by hiring an R&D center, firms create solid partnerships to help them navigate complex markets and products. In most cases, using an R&D center means that the firm doesn’t need to hire freelancers or new developers to explore new avenues – the R&D center may be able to provide the skills and engineers they need to meet their goals and develop future projects from end to end. 

This partnership can improve performance and productivity for both companies, which can boost profits and help the brand grow. 

How to set up an R&D Center

If you decide to work with an R&D center for your company, start by exploring the country where it’s located. What are the skill sets? What is the tax rate like? What are the going rates for engineers in that country? 

Next, start meeting with software companies that offer or can set up an R&D center. Ask for references and examples of businesses they’ve helped. It’s essential to choose a company with some eCommerce experience to leverage its expertise in this area. 

Make sure that you understand the deliverables and costs upfront to avoid surprises. If possible, set up regular meetings with the company to communicate your needs and stay on top of discoveries.


If you operate or want to start an eCommerce business, software R&D center services can provide a competitive edge when you need them. Innovation is the lifeblood of every tech company, after all. 

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