Influence of Corona on eCommerce and Crucial Advice for Merchants

Influence of Corona on eCommerce and Crucial Advice for Merchants

By Softpulse Infotech, April 9th, 2020

Influence of Corona on eCommerce and Crucial Advice for Merchants

The Corona virus has shaken up the economy of the world. With all of its health concerns, the industry experts are worried about its effects on the businesses too. How are the eCommerce businesses affected by it? What are the key affected areas? What are the challenges? And how can we overcome them?

The majority part of the world is under strict lockdowns. The governments are advising everyone to stay inside their homes. The people are afraid of getting out. The stock markets are crashing. In short, everyone is affected adversely due to crises. An eCommerce business is not an exception. Even the brick and mortar stores are also facing a difficult time surviving.

In this article, we have discussed all the things that you must know. As an eCommerce entrepreneur, you must be aware of all these things. And in the end, we have also provided a little guide that can help the online merchants. Read this guide until the end, and save your business from this pandemic.

The impact of social distancing

covid-19 Social Distancing

Several governments around the globe have employed the concept of social distancing. and in the effects, several major events around the world got canceled. One of the biggest tech events like the mobile world congress got canceled due to the Covid-19 outbreaks. Impacting the several tech giants. And resulting in affecting the sales of the largest tech giants, media partners, and several small scale electronic equipment suppliers.

The sports tournaments such as the Tokyo Olympics and Indian Premier League got canceled or postponed. Resulting in the loss of millions for organizers and media partners. And several businesses relying on selling the merchandise products and tickets of such events got affected badly.

Social distancing also affected B2B businesses. Several business meetings and travels canceled due to pandemic. Meanwhile, the consumption of media and OTT platforms increased dramatically. The number of hours spent on such platforms increased considerably. Hence to draw wide customer spread, Several of them have even come up with attractive offers and also increased their ad spending.


When the pandemic was in its initial stage, the governments were shutting all the brick & mortar stores of all the non-essential items. But as the situation was getting out of control, eCommerce also got hit. The supply chain management was getting out of the hands of merchants. Still, with the support of the government for essential services, several stores are getting the control back. But the industries such as fashion, beauty, luxury goods, and several more are affected.

The supply chain may get disrupted


One of the most crucial parts of eCommerce, i.e supply chain will get affected a lot. No matter, if you are an established brand, mid-sized organization, or a startup, the supply chain will get affected a lot due to lock downs. The manufacturing sector is under the effects of lock downs. The Chinese factories are closed. The established brands may manage their stocks from different sources. They will have the cash reserves to face the consequences. But for the small-sized brands, the difficult time is on its way.

And your delivery or shipping chain may also get affected severely. Governments are only allowing individuals related to the supply or manufacturing of essential services on roads. Your delivery service providers may not be able to deliver products. In short, the whole supply chain and logistics will get disrupted.

Facing the pandemic: What can you do?


The global economy is at risk. You should be aware that not just eCommerce, all the businesses around the world are facing the consequences of the epidemic. Here is the list of things that may help you save your business.

Communicate with your suppliers

At such pandemic events, communication is a real tool to retaliate the crises. Have a chat with your suppliers. Have a proper idea of their condition. Rather than bragging about their pending deliveries, be human, and understand the sensitivity of the situation. And ask them to do the needful if they can.

Accept orders only if you can deliver

The countries are under strict lock downs. Your shipping partner may not be able to deliver your products on time. And in the end, the consumers are directly going to local essential supplies stores. And the local stores are also facing a shortage of goods. At such a moment, if you are having control over your supply chain, then only accept the orders. Rather than having the inbox filled up with customer complaints, it’s better to understand the situation and shut the doors.

Order goods from wherever you can

The Chinese suppliers are under the storms. If they were your direct suppliers, you must look out for other options too. Several other countries can also deliver the same quality goods with some price hike. If possible, you can check in your own country too. Getting goods from the same country will save on transportation costs too. 

Keep on nurturing your customers

Due to the current situation, the delivery system will get affected. The delivery partners will not be able to deliver. And every customer may not be having patience as you. Hence rather than getting complaints, inform them in advance about your situation. Ask them to support and be generous about the circumstances. Contact them with emails, text messages, or phone calls before they start losing their minds.

Stock up your inventories

The Covid-19 outbreaks do not seem to go in a while. Hence count this order as your last encounter with your supplier. He may not be able to fulfill your orders if the situation goes out of his hands. Hence before the storm arrives, fill up your stocks to fulfill the future demands. But also keep checking your delivery system. If you are not able to deliver, then there is no point in stocking up your warehouses.

The consumers are only focusing on the essentials


Due to the lock downs and the risks of infection, the consumers avoid going out. It is the question of life surviving. The consumers are spending money only on groceries and medical supplies. And due to the panic, the leading essential store’s chains are falling short on supplies. The conditions of bulk buying, product shortages, and empty shelves are happening. The consumers are stocking up the necessities.

In week three of the crises, the transactions on grocery stores have increased by 10.9%. On the other hand, the traffic on premium groceries has decreased to -20.7% after seeing the temporary hike of 4.7%. And the health care also has seen the whooping traffic hike of 27% between week two and three of the outbreak.

A little list of pros & cons for this crisis

Shopify ecommerce development

As we all know, the current situation has numerous cons. But there is a bright side to it too. Here is a list of pros & cons that may help you survive the pandemic. Let’s talk about the good aspects (pros) first.

  • The consumers are preferring to stay inside. Hence this could be the golden opportunity for eCommerce. It is an opportunity to build trust with buyers, help them survive the crises.
  • The demands of medical supplies, groceries, and all essential services have increased dramatically if you are into that business, the golden opportunity awaits you.
  • The pollution around the world has reduced considerably. Mother nature rescuing herself. Good for humanity in the long run.
  • The world has come together to fight the crises. it is an opportunity to fight back together and prove that the team spirit can beat anything.

Now, it’s time to hear the bad news (cons).

  • The businesses are getting shut. The economy & stock markets are crashing.
  • The world may face the recession and economic crisis of 2008 once again.
  • The people relying on daily wages are going through unimaginable trauma.
  • The education of the future generation is getting affected a lot.
  • Thousands of saddened deaths due to the Coronavirus will be affecting their families.

The wrap up (keep the patience, we will pass this too)

The risk of Covid-19 outbreaks is real. But with business excellence and patience, they are manageable. The global trades have been affected badly by these events. But every crisis comes with the solution. The vaccination of the disease will take a while to come into existence. But till then, keep the above-mentioned things into mind. Try to get the best out of whatever the situation you are into. Stay inside, stay safe!!



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