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What All COVID-19 Brings for E-commerce Startups

COVID-19, novel Coronavirus was first detected in Wuhan city, China, in December 2019. Since its discovery, the coronavirus has spread to almost every country, and all countries need to go for lockdown, which adversely affected the country's economy. Practically every sector got affected due to this pandemic, including small businesses, startups, and entrepreneurs out to be most groups that have been directly affected by these measures.

The economic disruptions which are happening by the COVID-19 are being reflected in decreased valuations and increased in market fluidity. In recent times where many areas of business are struggling, and there are others having opportunities to flourish. One area of business that's helping economies stay afloat is E-commerce. In economic downturns, consumer demand for nice-to-have products goes down as buyers target their more basic needs like health, wellness, and safety.

5 Steps to Protect Your E-commerce Business During the COVID-19 Pandemic

Though some startups are doing well in this pandemic situation, especially the startups, which are into online grocery and essential goods, there are many more startups that are facing high risks and uncertainty, which can lead to the end of many startups in India. So, to cope up with this situation, the startups can take some measures which will somehow make them able to survive this pandemic.

1.Transparency in Business

E-Commerce business can be practice transparency by publicly addressing common customer frustrations like out-of-stock products, delivery delays, and internal sanitation procedures. They're also going to take steps like providing additional training to customer service agents about how to handle coronavirus-related inquiries.

A lot of E-commerce brands are trying to capitalize on changes in the market and take advantage of consumer's fear, and to gain short term profits are making the coronavirus pandemic like a promo code. This kind of tactic gives a wrong impression of the company to the customers and will cause long term damage.

2.Try to Communicate Less

Communication is essential during this situation, but focus on what's important and don't over-communicate. Use mails for communicating if relevant.

3.More Importance on Virtual Products

Supply chain problems may affect the manufacturing and shipping of physical products, which will affect the profits of the company. So, the sellers can take steps by focusing on marketing more virtual products, which they offer as there are no barriers to virtual products.


Advertising always plays a vital role in attracting customers and make connections 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 coronavirus pandemic. As 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 creates an opportunity.

5.Connect with Customers and Be Social

Many Instagram users follow various brands on social media, so there are many opportunities for the E-commerce business to connect with their followers during this situation.

Challenges for E-commerce During the Coronavirus Pandemic

There are steps to make an eCommerce business successful. In theory, online businesses of all sizes stand to find out from the switch of consumer behaviour to online shopping since they're already well-positioned to serve the increasing demand for goods and services.

1.Inventory Shortages

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

2.Changes in Demand and Revenue

Preliminary data is saying that e-commerce has recently experienced an average revenue weekly rate increase of 50% and a 9% increase in conversion rates, which compared to last year, this might reflect a step up in demand as more consumers intercommunicate online shopping.

3.Supply Chain Issues

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

Final Thought

Now it is the time to move ahead with high confidence; once the infection rate decreases, things will get back to normal. COVID-19 pandemic created a new challenge for startups as we can see the growing concerns that startups are going to exposed financial risk. In these uncertain times, there are still many opportunities to think differently and to follow the best approach. We are here to share new insights regularly if you have any queries contact us and let us know if we might help you. We at Business Setup help entrepreneurs to establish Business across Worldwide.

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