What All COVID-19 Brings for E-commerce Startups

What All COVID-19 Brings for E-commerce Startups

The COVID-19 situation has affected different product categories and sellers regarding e-commerce. For instance, the demand for items related to personal protection (like disposable gloves), household chores, groceries, or ICT equipment increased in the United States. In contrast, the demand for items related to travel, sports, or formal clothing (like suitcases, bridal gowns, gym bags, etc.) decreased. 

There have been noticeable shifts towards e-commerce in several nations, particularly throughout the food supply chain. Examples include farmers who began utilizing digital technology to sell their goods directly to consumers or restaurants offering food or grocery delivery services.

So let’s look at how the e-commerce industry has been affected by Covid 19 pandemic in this blog. 

E-commerce Business Industry after Covid 19

According to projections in the UNCTAD (United Nations Conference on Trade and Development) research report, the percentage of online retail sales in total retail sales rose from 16% to 19% in 2020 as a result of the sharp expansion in the e-commerce business and the mobility limitations brought on by COVID-19.

Online retail sales increased significantly across several nations, with the Republic of Korea having the most significant proportion at 25.9% in 2020, up from 20.8% the previous year.

How to protect your E-commerce Startups 

While some firms, particularly those that deal with online groceries and necessities, are doing well in this pandemic environment, many others are dealing with huge risks and uncertainties, which might spell the death of many startups in India. Therefore, to deal with this circumstance, startups may take several actions to help them survive this pandemic.

Fostering Innovative Models in the Business

New business models emerge in ways that are challenging to existing policy frameworks as digital transformation advances. For example, legal regimes may maintain fictitious differences between online and physical trade even as businesses increasingly embrace hybrid business models. In addition, planning and zoning regulations may make it more challenging to repurpose old brick-and-mortar buildings quickly (e.g., converting storefronts into warehouses or logistics hubs in urban centers). 

They can also hinder or stop adopting cutting-edge, contact-free delivery techniques like robots or drones. This is especially important during the COVID-19 crisis, when businesses must adjust to restrictions on physical encounters or supply chain interruptions, adopting new business activities and logistical solutions to ensure their continued success.

Business Transparency

E-Commerce businesses can practice transparency by publicly addressing common customer frustrations like out-of-stock products, delivery delays, and internal sanitation procedures. They'll also provide additional training to customer service agents about handling coronavirus-related inquiries.

Many E-commerce brands are trying to capitalize on changes in the market, take advantage of consumers' fear, and gain short-term profits by making the coronavirus pandemic like a promo code. But unfortunately, this kind of tactic gives the customers a wrong impression of the company and will cause long-term damage. Learn more about the 5 steps to launching a successful e-commerce business


Advertising always plays a vital role in attracting customers and connecting with them. Though it is challenging to attract new customers in this pandemic situation, at least there will be a scope to recapture lapsed customers and engage high-value customers. Also, consider display advertising as app download has surged due to the coronavirus pandemic. In addition, people are learning, working, and spending more time on the internet at home. Moreover, online content platforms like YouTube, Facebook, Twitter, Instagram, and TikTok are trending upward, creating an opportunity.

Challenges Faced during Covid 19 by Ecommerce Companies

Undoubtedly, e-commerce startups also faced some difficulties during the pandemic. If you have met some, learn more about the 8 steps to build that successful brand for your e-commerce business. Therefore, the government needs to take several measures for the recovery of the e-commerce startups along with the owners themselves. A few challenges are mentioned below:

1. Inventory Shortages

If you've gone to a store lately, you've little doubt encountered empty shelves. However, with more people buying food and supplies and hoarding necessities, numerous industries are managing inventory shortages.

2. Changes in Demand and Revenue

Preliminary data says that e-commerce has recently experienced an average revenue weekly rate increase of 50% and a 9% increase in conversion rates. Compared to last year, it might reflect a demand increase as more consumers intercommunicate with online shopping.

3. Supply Chain Issues

Potentially declining consumer demand and product shortages could also hit e-commerce growth.

It can be concluded that there are several challenges that you might face if you deal with e-commerce startups or if you are looking to start one. However, the challenges can be overcome by following the measures mentioned in the blog.

This is your time to fulfill your ambition of launching an e-commerce firm because the statistics indicate that it has been growing steadily over the previous several years. We at Business Setup Worldwide are here to help you incorporate your business.

Contact us for further inquiries, and we’d be happy to help. 


1. What is the growth rate of the B2C e-commerce business in 2020?

20.5% in 2020.

2. Which products saw the maximum number of sales in e-commerce platform

Auto and parts

3. What is the growth rate of e-commerce compared to before the pandemic?


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