Many e-commerce businesses have been affected by the crisis and require government assistance to try to boost their operations during this time. This support is needed so they can continue operating as they did before early March, when this significant social crisis arose, impacting a large number of online stores and businesses .
In this context, different emergency plans have been drawn up to protect these businesses in these months in which there has been a stoppage of business activity. Both in the development of business strategies and in relationships with customers or users. So that in this way they are in a position to continue with their activity from now on.
The food sector is experiencing the most growth in online store openings. Specifically, businesses like butchers, fishmongers, greengrocers, and small neighborhood shops are the most interested in launching online stores. This is their way of trying to compensate for the government-mandated closure of their physical establishments to combat the spread of the virus.
Sectors with the most demand
While on the other hand, the more traditional online stores or businesses are seeing how these days the orders are being expanded by their customers. Faced with the demand for a wide range of services, articles and products that are demanded by people who are confined to their homes. Such as food, books, leisure and entertainment products, or technology products
Especially given the lack of response from physical stores that have had to close in recent days due to the spread of the virus . To the point that, in some cases, the increase in their business lines is reaching levels exceeding 40%. The biggest problem stems from the location of collection points, as users are unable to leave their homes.
In this sense, we must remember at this time that the automated collection points are those that are acquiring greater relevance these days. Although they require a large infrastructure and a certain complexity, we can find this type of lockers for some time. In general, they are usually located in public places such as shopping centers or transport stations (and even private, such as the common areas of neighboring communities). Its mechanics are very simple for everyone since it is based on the fact that the user himself moves to them and enters a barcode that allows him to access his shipment.
Aid for freelancers and companies
Moratorium on social contributions for companies and the self-employed.
It offers the possibility of requesting a moratorium of up to six months, without interest, in the payments of Social Security contributions whose accrual period, in the case of companies, is between the months of April and June and, in In the case of self-employed workers, between May and July 2020. In addition, they may request the postponement of the payment of their debts with Social Security, the statutory period for entry of which takes place between the months of April and June.
Aid for tourism.
An ICO (Official Credit Institute) financing line of over €400 million has been approved for tourism businesses, with a 50% partial guarantee from the Ministry of Industry, Trade and Tourism. Furthermore, the 50% reduction in employer social security contributions for fixed-term seasonal contracts has been extended to tourism businesses (including those in the retail and hospitality sectors linked to the industry) for contracts from February to June. In addition, to ensure the liquidity and viability of tourism businesses, the payment of interest and principal on loans granted by the State Secretariat for Tourism under the Emprendetur Program, specifically its R&D&I, Young Entrepreneurs, and Internationalization variants, has been suspended for one year without penalty.
Other grants for SMEs
Among the main aids for SMEs and the self-employed are the following that we mention below:
Cessation of activity. Self-employed professionals who see their income reduced by 75% due to the coronavirus crisis, can access the so-called “unemployment of the self-employed”. The amount they will receive is calculated based on the average monthly contribution for the last six months. Given that 80% of the self-employed pay for the minimum, the average amount that the self-employed will receive will be about 660 euros per month. In order to opt for the cessation of activity, or also called unemployment of the self-employed, it is necessary that the worker is up to date in the payments to the Social Security and to have been registered in the Special Regime for Self-Employed Workers (RETA) at the time in which the state of alarm was decreed on March 14. The self-employed and entrepreneurs in need must go to the banks to request this financing.
Approved deferrals. The self-employed will be able to postpone the debts that they already had with the Social Security. Those income that self-employed workers had to make between April and June of this fiscal year may be deferred, applying a 0.5% interest. A six-month moratorium has also been approved for the payment of obligations with Social Security for May, June and July for both the self-employed and entrepreneurs. These will also have no surcharges or interest.
Pension plans. The self-employed or entrepreneurs who have been forced to close their businesses can access the rescue of their pension plans.
Mortgages. Mortgage payments are suspended for three months for those self-employed affected. To do this, they must submit a responsible statement that proves vulnerability and may suspend their fees for three months.
Electric social bond. It is intended for those self-employed who have had to cease their activity or who have reduced their income by at least 75%. They will be able to suspend bills for gas and electricity supplies for six months.
Self-employed workers infected with coronavirus. Self-employed workers who fall ill with Covid-19 will have it considered a work-related accident . This means they will be eligible for sick pay. The amount for self-employed workers contributing at the minimum rate is €23,61 for each day of sick leave. The main difference compared to cases where it is considered a common illness is that the self-employed worker in these cases receives the benefit starting on the fourth day, and the amount is 60% of their contribution base.
Financing . The government has announced a series of guarantees that will cover 80% of the risks associated with loans that banks grant to the self-employed and small and medium-sized enterprises (SMEs). Specifically, €10.000 billion will be allocated to this measure. Self-employed individuals and business owners in need should go to the banks to request this financing.
Bonuses on previous contracts. Especially in sectors such as hospitality or commerce, they have entered into discontinuous fixed contracts prior to the coronavirus crisis. These contracts were accompanied by certain bonuses. The Social Security has announced that it maintains this aid for all contracts signed until June. The self-employed and entrepreneurs in need must go to the banks to request this financing.
Incentives to mitigate the effects of the crisis
Within this campaign, it should be noted that ePages, one of the main providers of online store software, wants to help businesses affected during the coronavirus crisis with free online stores so that they can continue to sell. Through the “stayopen” initiative, closed businesses have the option of creating their own virtual store for free and with all its features, which will help them mitigate the economic consequences of the current situation, so that their customers can continue shopping safely from home. The service will remain free until the end of June, or longer if restrictions on store openings persist.
Measures against the coronavirus, which include the closure of physical stores, pose great challenges to the distribution sector. "Retailers are particularly affected by the state of emergency, especially small business owners," says Wilfried Beeck, founder and CEO of ePages. “While e-commerce is booming and authorized during the crisis, physical commerce is struggling to continue operating. With our cloud-based infrastructure, we can immediately offer a quick solution to thousands of merchants. "
The "stayopen" initiative has the support of many international ePages partners: the hosting company Hostalia in Spain; the leading provider of payment services Payone, a joint venture of the Ingenico Group and Deutscher Sparkassenverlag, and VR Payment, the payments division of the Volks- und Raiffeisenbanken Bank in Germany; the hosting provider Hostpoint in Switzerland; Box e-commerce of Société SAS in France; the Vilkas Group in Finland; eCorner in Australia; and Dominios.pt. in Portugal. So far, all of these companies have joined the initiative.