The collapse of Huboo revealed the concealed dangers of selecting a provider whose financial health remains unknown to sellers.
The Risks eCommerce Sellers Faced
Stock Held in Warehouses Became Inaccessible
The announcement of administration prevented numerous businesses from accessing their inventory.
The combination of delayed orders and lost stock led to monetary losses for the selling companies.
Orders Went Unfulfilled During the Collapse
The abrupt termination of shipments caused customers to lose trust in the company.
Some businesses received penalties from Amazon and eBay marketplaces because of the situation.
Financial Losses with No Compensation
The customers received no advance notice about the disruptions so they were unable to prepare for them.
The administration process gave priority to secured creditors instead of protecting affected businesses.
How to Protect Your Business from Fulfilment Risks
Check financial reports at Companies House because the records show multiple years of financial losses.
Businesses should use multiple fulfillment providers to prevent dependence on one company.
Establish backup plans to handle unexpected interruptions.
Conclusion
An eCommerce business faces total destruction when it selects an inappropriate fulfillment provider as demonstrated by Huboo’s collapse. The new company Huboo Tech Limited presents itself as a fresh start but sellers remain uncertain about trusting a business that emerged from financial failure?
