Purpose This study draws lessons from e-tailer adaptations to the enhanced protection needs of employees and customers and capability development, during events such as social distancing causing crises (SDCC) and provides a conceptual framework. Design/methodology/approach A grounded theory-based approach has been used wherein 130 news articles and 48 journal papers were analyzed to understand the real-world measures and impact. Findings E-tailers adapt to provide their workforce an environment that caters to their increased need for physical and mental well-being and take measures for customers health protection. They also take initiatives toward mitigation of the high incidence of cyber fraud faced by the vulnerable customers. In the process, they develop several capabilities during and post-crises. Research limitations/implications The study focuses only on the impact of COVID-19 on e-tailing. This is a limitation and other industries and crises may be studied in the future. Practical implications The study holds significant potential for future research as the three research propositions offered can enable hypothesis generation for larger quantitative studies. The adaptation to the enhanced protection needs of employees and customers result in the development of several capabilities such as a more equitable work environment, a more loyal, productive and adaptable workforce, increased customer retention and acquisition and a better image. Hence this study has several organizational development practical implications as it provides managers lessons to survive and thrive from future crises. Originality/value Few studies have investigated e-tailers adaptations for enhanced protection needs of employees and customers and its impact during and after SDCC. This empirical study extends a body of literature which is scarce.