Volusion is one of the most popular eCommerce platforms today and when I heard the news that Volusion has filed for bankruptcy due to a hacking breach, I was more than surprised. Volusion has been around for more than two decades now, and to hear the news that it has filed for bankruptcy is alarming, to say the least. Volusion has a large number of solid customers. So, what does Volusion filing for bankruptcy mean for these stores? Should they be worried? Is continuing your business on Volusion still safe? We’ll address all of these questions in this article.
The first thing you need to know is that the Austin-based company has filed for bankruptcy under Chapter 11. This means that Volusion will undergo a reorganization of its business affairs, debts, and assets. Following the hack that compromised Volusion’s cloud hosting infrastructure, the company is rumored to have lost at least $1.6 million.
What Does It Mean for Your Business?
As far as a Volusion store owner is concerned, the first question on your mind after hearing the news is, “What does it mean for my Volusion store? Should I be worried?” At this point, there is no sugar-coating it, looking at it objectively, a Volusion store owner should be concerned. It’d be foolish not to be worried at this point. However, it is not yet time for you to panic. Volusion reassures us that neither their customers nor their partners will face any adverse effect of the Chapter 11 bankruptcy. However, in today’s world, it is inevitable for businesses to be prepared for all eventualities.
Volusion has filed for Chapter 11 bankruptcy, which is not the worst kind of bankruptcy. Had it been a Chapter 7 bankruptcy, it would have been a different matter altogether. It is probably unlikely that the bankruptcy that Volusion is facing right now is critical. Given the track record of Volusion, they’ll be back on their feet after the reorganization. However, as a Volusion store owner, it is in your best interest to be prepared for the worst-case scenario.
One of the factors that do pose a concern is Volusion’s partnership with Rackspace. Speculations are surrounding Volusion’s partners and whether they’ll be able to maintain their relationships with the partners after the bankruptcy. Having said all that, we are still talking about a worst-case scenario here. The truth is that no eCommerce platform is perfect, and Volusion is no different. There are always risks involved in this line of business.
Should you Migrate to a Different Platform?
If you want to migrate your eCommerce store solely because you are concerned about the bankruptcy, the answer as of now is most likely NO. First of all, it is still way too early to make such a big decision based on the news and rumors. Migration to a new platform can be an expensive affair, and most businesses would have already spent a considerable amount on custom systems and integrations for their volusion store.
However, if you want to play it safe or have other reasons to migrate from Volusion, this would be a good time. You should also keep in mind that migration would be your only option in case of the worst-case scenario. That being said, migration is not a simple task, and hopefully speaking, it’d likely take about ten days minimum. And if you are not prepared for it, it may take as long as a couple of months based on how your Volusion store is set up.
The migration will be a lot smoother for your Volusion store if it is equipped with an external channel manager or inventory management system. As a matter of fact, many Volusion stores do not have an external channel manager or an inventory management system. In this case, we can make use of Volusion’s simple data-structure to migrate your store with a default theme in any of the 10 platforms we have certified expertise on, just in case you decide to migrate. We could also help you take a phased approach where your most essential features are configured first, and then we gradually complete the rest. This approach will ensure that your business survives. You can always fine-tune and improve your store from here on. With this approach, the migration can be implemented as little as in a week.
What Step Can I Take With Immediate Results in Less Than 7 Days?
With all factors considered, the most logical thing to do right now, would be to create a backup plan for your Volusion store. This includes backing up your eCommerce store, templates, and database.
Ensuring that you do not lose any valuable data can help the backup process where all data can be saved. The most important items to be backed up are records of customers, previous orders, and product-related data. It is also important to keep this backed up information updated. That way, your business is prepared for the worst-case scenario, no matter what happens and it gives you breathing room to plan for migration if you choose to do so.
Keeping an up-to-the-minute backup can be a time consuming process which takes a lot of discipline. That is where Virtina can help. We have a solution that backs up the core data once and then keeps it up-to-date near live (up-to-the-minute) in the cloud.
The fact that Volusion had filed for bankruptcy is cause for concern. However, that does not mean that Volusion store owners should panic and make impulsive decisions based on the news. Volusion still remains one of the most reliable eCommerce platforms in the world. Yet, as a store owner, you cannot afford to be careless or ill-prepared either. Take necessary safeguard measures such as a data backup for your Volusion store to ensure that you remain safe no matter what the eventualities may be.