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Headwinds or Opportunities: Volusion Customers Look Ahead August 19, 2020

With the recent news that eCommerce platform provider Volusion filed for Chapter 11 after it was breached, and more than 239,000 credit card records absconded and subsequently sold on the dark web for more than $1.6 million, it leaves many to wonder if the estimated 180,000 businesses relying on the solution might feel they’re at a crossroad.

Volusion has calmed fears by stating it is “cash secure” and will likely weather the effects (after all, they’ve been around as long as eCommerce has). But it does make one wonder if smaller shops would fare as well even if they felt “cash secure” as the very nature of bankruptcy puts that position to the test.

According to a primer put together by the firm of Kroger Gardis & Regas LLP, because of potential lawsuits that might spool up due to the bankruptcy, and the potential for them to span several counties and states, “…multiple law firms engaged to defend the company can be a severe drain on an already impaired cash flow.”

Additionally, the primer goes on to say that “…the company’s cash flow is often restricted after a Chapter 11 filing by the rules of bankruptcy and claims on cash by secured lenders who particularly don’t want their collateral used to finance a fight they are on the other side of.

Since bankruptcy can play out in a number of ways, from reorganization to liquidation, where does this leave customers caught in the middle?

At the very least, current customers are likely protected from any hikes due to contracts, with incentives given to those customers who stick around when renewal comes around (spared an increase the first renewal, not so much the second). New customers would likely be the bearer of any increased costs.

Brand Labs has a long history of working, implementing, and developing for Volusion, so we know it well. Whether the current state of Volusion finds you rolling your fingers in consternation, questioning if you’ve outgrown the platform, or flirting with what-ifs, Brand Labs knows eCommerce. From advising to guiding, we’ve successfully migrated hundreds of eCommerce sites using an approach that has been perfected over our 15+ years of work:

The in-depth migration process to ensure success and a smooth transition from Volusion:

  • Functionality Prioritization Document
  • Platform Investigation
  • User Journey Flow, Site Architecture and UX Wireframes
  • Technical Requirements Document
  • Detailed Migration and Implementation Plan
  • Robust Pre/Post-SEO Migration Retention Plan

If you’re a Volusion loyalist or a customer entertaining the idea of migrating to something that gives you more flexibility, it’s always good to know your options, what’s entailed and what to expect.

Especially since in a bankruptcy one of the biggest determinants in whether a company should liquidate or attempt to restructure is simply… does it have a reason to exist. For outfits not as robust as Volusion, it leaves a lot to consider.

This is, after all, the tech space.

Just sayin’.