The Ottawa headquarters of Canadian e-commerce company Shopify are pictured on Wednesday, May 29, 2019. Shopify Inc. is offering merchants interest-free, cash advances to help businesses using its e-commerce products cope with the impacts of COVID-19. THE CANADIAN PRESS/Justin Tang

The Ottawa headquarters of Canadian e-commerce company Shopify are pictured on Wednesday, May 29, 2019. Shopify Inc. is offering merchants interest-free, cash advances to help businesses using its e-commerce products cope with the impacts of COVID-19. THE CANADIAN PRESS/Justin Tang

E-commerce giants offer cash advances, waive fees and more amid COVID-19

The moves come as companies across Canada are struggling to stay afloat

Canadian businesses struggling amid the COVID-19 pandemic are getting some relief from the e-commerce platforms they use to sell their goods and services.

E-commerce companies including Shopify Inc., Amazon.com Inc. and EBay Canada are trying to help businesses grappling with the impacts of COVID-19 by offering cash advances, waiving fees and pausing loan repayments.

The moves come as companies across Canada are struggling to stay afloat amid physical distancing measures that have shuttered brick-and-mortar stores and had to resort to layoffs and pay reductions to cover mounting bills.

According to surveys from the Canadian Federation of Independent Business, 56 per cent of small businesses have no more capacity to take on debt during this emergency, 30 per cent do not have cash flow to pay bills accrued in April and 39 per cent are worried about permanent closure.

With numbers like those in mind, Shopify said Monday that it is offering its merchants interest-free, cash advances ranging from $200 to $500,000 per eligible company.

READ MORE: ‘I just want to survive:’ Greenhouses struggling with economic reality of COVID-19

The Ottawa-based technology company said the advances will have to be repaid through future sales, but are meant to provide fast relief to cash-strapped businesses across the country, who realize how daunting it can be to take on debt.

“This funding will fill in the gaps that banks generally can’t satisfy right now and provide businesses with the cash flow they need, when they need it most now, not months from now,” said Kaz Nejatian, Shopify’s vice-president and general manager of financial solutions, in an email to The Canadian Press.

Companies who receive funding from the program called Shopify Capital will only have to pay it back when and if their business starts to rebound through the Shopify platform.

“The merchant is not obligated to pay anything if they are not making sales,” Nejatian said.

He declined to reveal how much money would be available to Canadian merchants through Shopify Capital, but said the company is adding US$200 million to the program worldwide.

The company will decide which of its merchants are eligible for Shopify Capital in Canada by using an online application and approving those who qualify within a few days.

Meanwhile, its rival Amazon.com Inc. waived two weeks of inventory storage fees in March, as well as long-term storage fees for companies using its platform.

The Seattle-based tech giant paused loan repayments between Mar. 26 and Apr. 30 and relaxed delivery and fulfillment policies for sellers experiencing supply chain issues due to pandemic-related disruptions.

READ MORE: B.C. police can now issue $2,000 tickets for reselling medical supplies, price gouging

In an email to The Canadian Press, an Amazon spokesperson said, “We know this is a change for our selling partners and are working hard to help them during this difficult time.”

Over at Ebay Canada, businesses that are new to the platform can enrol in the Up and Running program to get selling fees on up to 500 sales waived and access a free basic store for a three-month period to help them better generate cash flow.

“The majority of Ebay Canada sellers are small businesses from across the country. They embody what it means to stay local and sell global,” said Rob Bigler, Ebay’s general manager, in a release.

“We are putting every resource into making it simple and cost-effective for them to quickly set up on Ebay and resume selling.”

The move comes after Ebay zeroed in on helping Halifax amid COVID-19 with its Retail Revival program.

The initiative launched in the city at the start of the year uses training, support and educational resources to help local business owners learn how to most effectively sell their inventory in a global marketplace.

Tara Deschamps, The Canadian Press


Like us on Facebook and follow us on Twitter.

Coronaviruseconomy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Langley Township Civic Facility. (Langley Advance Times files)
Housing, RCMP, Fort roads all discussed at Langley Township budget meeting

A Monday meeting touched on priorities for this year and beyond

Submit letters to the editor through our website, via email or in writing.
LETTER: Cloverdale man said public pressure only convinces church goers they are right

Engageing churches in discussions on how to reduce transmission would be more effective than bans

When the pandemic forced the shut down of playgrounds in Langley this past Spring it sparked creativity for these Langley grandparents Herb and Cherri Kwan, who found themselves picking up a paint brush to help keep the local kids occupied. (Bernadette Amiscaray/Special to Langley Advance Times)
PHOTOS: Pandemic park closures spark artistic rock creations for retired Langley grandparents

Herb and Cherri Kwan started hiding painted rocks in Routley Park when playground closed

Shortreed Community Elementary. (Langley School District/Special to the Aldergrove Star)
Parent Advisory Council raises concerns over Langley school district power outage response

Fifteen teachers at Shortreed Community School in Aldergrove staged a sit-in strike last Wednesday

Family and friends of Hudson Brooks marched as part of a call for answers from an IIO investigation into his 2015 death. (Black Press Media files)
Inquest to look into RCMP shooting death of Hudson Brooks

Charges agains the RCMP officer who shot Brooks were stayed in 2019

Provincial health officer Dr. Bonnie Henry prepares a daily update on the coronavirus pandemic, April 21, 2020. (B.C. Government)
B.C. adjusts COVID-19 vaccine rollout for delivery slowdown

Daily cases decline over weekend, 31 more deaths

A female prisoner sent Langford police officers a thank-you card after she spent days in their custody. (Twitter/West Shore RCMP)
Woman gives Victoria-area jail 4.5-star review in handwritten card to police after arrest

‘We don’t often get thank you cards from people who stay with us, but this was sure nice to see’: RCMP

An elk got his antlers caught up in a zip line in Youbou over the weekend. (Conservation Officer Service Photo)
Elk rescued from zip line in Youbou on Vancouver Island

Officials urge people to manage items on their property that can hurt animals

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A Trail man has a lucky tin for a keepsake after it saved him from a stabbing last week. File photo
Small tin in Kootenay man’s jacket pocket saved him from stabbing: RCMP

The man was uninjured thanks to a tin in his jacket

Tla-o-qui-aht First Nation Chantel Moore, 26, was fatally shot by a police officer during a wellness check in the early morning of June 4, 2020, in Edmundston, N.B. (Facebook)
Frustrated family denied access to B.C. Indigenous woman’s police shooting report

Independent investigation into B.C. woman’s fatal shooting in New Brunswick filed to Crown

Delta Police Constable Jason Martens and Dezi, a nine-year-old German Shepherd that recently retired after 10 years with Delta Police. (Photo submitted)
Dezi, a Delta police dog, retires on a high note after decade of service

Nine-year-old German Shepherd now fights over toys instead of chasing down bad guys

Nurses collect samples from a patient in a COVID suspect room in the COVID-19 intensive care unit at St. Paul’s hospital in downtown Vancouver, Tuesday, April 21, 2020. (THE CANADIAN PRESS/Jonathan Hayward)
5 British Columbians under 20 years old battled COVID-19 in ICU in recent weeks

Overall hospitalizations have fallen but young people battling the virus in hospital has increased

Canada released proposed regulations Jan. 2 for the fisheries minister to maintain Canada’s major fish stocks at sustainable levels and recover those at risk. (File photo)
New laws would cement DFO accountability to depleted fish stocks

Three B.C. salmon stocks first in line for priority attention under proposed regulations

Most Read