Shutdown: when an online shop needs to close

In spite of the best ideas and great implementation, customers have failed to materialize. After careful consideration, you decide that your online shop needs to be closed down. What happens next?

Impressive products and a solid marketing concept are essential components for a successful online shop. Yet even if these requirements are met, the online shop may not be successful. There may be too few customers and a lack of sales. At some point, you may come to the conclusion that things cannot go on like this. Your online shop will need to be closed.

In other words, you’re going out of business. What is the best way for online shop owners to announce this? Should the closure be quiet and final? Or should you stick to the motto “we shall meet again”?

Few online shops need to shut down their operations suddenly and unexpectedly. Rather, the end will become apparent over weeks and months, until the final (and often painful) decision is made. And when the moment for that decision comes, you should plan for an orderly exit. Communication plays a major role in this process.

Notify partners and suppliers

Business partners and product providers have placed their confidence in your online shop in the past. They therefore have a right to be notified early about the shutdown. To prevent information about the planned closure leaking out to the public too early, an NDA (non-disclosure agreement) or a CDA (confidential disclosure agreement) may be signed.

Inform existing customers

Existing customers should also be informed about the impending closure in writing at an early stage. This announcement could potentially be linked with a promotion (special sale or discounts). Customers who have regularly ordered spare parts or consumables, for instance, can be motivated to stock up again using this method.

Prepare the online shop

The closure must also be announced on the online shop. The announcement should not be made too early, so as to minimize loss of sales. The deadline for accepting and delivering orders must be clearly visible to customers. During the transition period, items that are no longer in stock must be removed from the online shop on a regular basis, in order to avoid irritation for customers.

Optional: inform the media

If your product range is larger and has regional or even national significance, it may be appropriate to notify the media about the shutdown.

D-Day

On D-Day, you could simply shut your servers down. But that would be bad form. And besides, there may still be customers or influencers who have not been notified. It is better to activate a website that briefly announces the closure and the reasons for it, thanking customers for the trust they placed in the online shop. The following information may also be useful for customers:

• What happens with returns? Is it possible to return items even after the final day of operations?
• What does the situation look like for warranty claims? Are these guaranteed, and what is the procedure?
• What is the process for customer credit and vouchers?
• What should customers do if they have outstanding invoices that need to paid?
• Is there a contact address customers can turn to if they have questions? What is the deadline for reaching this address?

The best idea is to distribute information on all channels that were used in the past.

A clean, orderly and well communicated shutdown can pay off in the future. If you plan your closure properly, you will also avoid legal confrontations with customers at a later point.