What to Do When Your Fulfilment Company Goes Bust

With the recent news of some well known ecommerce fulfilment companies going into administration, we at Rapid Pack understand the anxiety and uncertainty this can cause for ecommerce retailers who rely on these fulfilment providers. Rest assured, we are here to offer our assistance, and we have put together a comprehensive step-by-step guide to help you navigate this situation as swiftly as possible.

There are practical steps you can take to minimize the disruption and protect your business. In this article, we will guide you through the process of dealing with a fulfilment company that has gone bust, ensuring you're back on track with minimal hassle.

1. Assess the Situation

When you receive the news that your fulfilment company has gone bust, it's essential to take a step back and assess the situation. Gather all relevant information, such as contracts, communication records, and financial statements, to gain a clear understanding of the circumstances. Identify outstanding orders, inventory on hand, and any potential legal obligations.

2. Contact Your Fulfilment Company

Even though they may be in a state of financial turmoil, it's crucial to establish contact with your fulfilment company. This initial conversation can provide valuable insights into the company's plans, including whether they intend to continue operations or liquidate assets. Clarify any immediate concerns regarding your inventory and order fulfilment.

3. Explore Legal Options

If your fulfilment company's situation appears dire, you should consult with legal counsel to understand your rights and obligations. Contracts and agreements signed with the company may contain provisions related to insolvency or breach of contract. These legal documents can guide your actions in seeking compensation or recovering your assets.

4. Identify Alternative Fulfilment Options

While dealing with the fallout from a bankrupt fulfilment company, it's essential to have a backup plan in place. Start researching and reaching out to potential alternative fulfilment partners or third-party logistics providers (3PLs). Ensure that their capabilities, pricing, and location align with your business needs.

5. Retrieve Your Inventory

Securing your inventory is a top priority. Coordinate with the bankrupt fulfilment company to retrieve your products. If the company is unable to provide your inventory, your legal counsel can help initiate the process of asset recovery through legal means.

6. Communicate with Your Customers

Open and transparent communication with your customers is crucial during this challenging period. Inform them of the situation, any delays in order fulfilment, and reassure them of your commitment to resolving the issue promptly. Consider offering compensation or discounts to maintain customer loyalty.

7. Update Your Ecommerce Platform

Temporarily pause or redirect your ecommerce website to prevent new orders until you have a stable fulfilment solution in place. Clearly communicate the situation on your website and provide customers with alternative purchasing options or expected order fulfillment timelines.

8. Reevaluate Your Fulfilment Strategy

This unexpected disruption may prompt you to reevaluate your entire fulfilment strategy. Consider the lessons learned from this experience and make necessary changes to mitigate similar risks in the future. Diversifying your fulfilment network or exploring in-house fulfilment options may be prudent steps to take.

9. Seek Financial Assistance

If your business is struggling due to the fulfilment company's bankruptcy, consider seeking financial assistance through loans, grants, or crowdfunding. These resources can help bridge the gap and ensure your business remains operational during the transition.

10. Stay Informed and Adapt

Stay updated on the legal proceedings of the bankrupt fulfilment company and any developments that may affect your situation. Adapt to changing circumstances and seize opportunities to strengthen your ecommerce business.

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Are you looking for a UK based 3PL to partner with your store? Here at Rapid Pack we offer all of our clients 60 days free storage on signup. We also include the first pick within the shipping price! Wherever you're shipping to we have great and affordable courier partners to choose from too!

So if you're looking to grow your online store in 2024 and need a hand picking, packing and shipping your orders then consider choosing Rapid Pack Fulfilment ... get your free quote > HERE< Just tell us about your business. It only takes a few minutes.

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