If you’re a merchant hosting an online store with Volusion, you’ve probably heard by now that the company has hit a rough patch. In late July 2020, Volusion quietly filed for bankruptcy. According to the company, the bankruptcy filing is meant to address an unstable capital structure that requires reorganization. But, regardless of why the company filed for Chapter 11, the question on every Volusion merchant’s mind is, what does it mean for business? The good news is that it might not mean anything, the bad news is that, at this point, it’s impossible to really be sure one way or another.
You Can Stay with Volusion
First and foremost, Volusion is not shutting down – at least not yet. Chapter 11 is a type of bankruptcy that sees a company’s assets, debt, and business affairs reorganized, and as such, Volusion will continue operating throughout the process. The company claims all services will continue to operate as normal, so if you’re currently running your store on Volusion, you can continue to do so. Assuming the company emerges from its bankruptcy healthier and more profitable, you may end up seeing no significant impacts whatsoever.
You Will Inherit Some Risk from Staying with Volusion
Unfortunately, a Chapter 11 bankruptcy is still a bankruptcy. The repayment of creditors is a top priority, and if Volusion is unable to successfully reorganize, it’s entirely possible that liquidation of the company to pay off debts could be the end result. There are no guarantees. That means your business is taking on a certain amount of risk by sticking with Volusion. You’ll also face uncertainty regarding things like pricing and service options, as a key part of reorganization may be cost reductions or fee increases in search of new revenue.
Now May Be an Ideal Time to Make a Change
The result of all that uncertainty is that it might be an ideal time for you to make a change. Whether or not Volusion eventually goes belly up or survives and thrives in the long run, your business can eliminate much of the risk involved with the bankruptcy by simply switching to a healthier ecommerce provider like Shopify, WooCommerce, BigCommerce, or any number of other popular options. Whether or not that’s the right choice is based on your company’s unique situation. If you have a large, highly-complex online store, it may be worth it to stay put and hope for the best. If making the switch would be relatively painless, you stand to gain significant peace of mind by getting on a more stable platform.
Regardless of which way you decide to go, BAMS is ready to help you ensure that your ecommerce business continues to operate as smoothly – and as profitably – as possible. BAMS is a leading provider of transaction processing and merchant services across a wide variety of industries, and our expert team can help you get your store set up with not only the ecommerce tools you need, but also with the lowest possible monthly fees thanks to our interchange-plus pricing model. To find out exactly how much you could be saving each month as a BAMS merchant, get started with our unique five-point price comparison today!