Sendle Closure Echoes Past Failures — Startups and Small Businesses Bear the Greatest Cost

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Sendle Closure Echoes Past Failures — Startups and Small Businesses Bear the Greatest Cost

Sydney, Australia 13/1/2026

The sudden closure of Sendle has once again disrupted Australia’s ecommerce sector, leaving startups and small businesses scrambling to keep orders moving and customers informed.

According to Jimmy Wu, CEO of Zappy, this kind of disruption is neither new nor unexpected.

“This is not the first time this has happened in Australia — and it won’t be the last,” Wu said. “Many in the industry still remember what happened with Temando. When Temando exited the market, thousands of merchants lost access to a critical piece of logistics infrastructure.”

Temando, once one of Australia’s most widely used multi-carrier shipping and delivery-orchestration platforms, played a key role in helping online retailers  — access multiple couriers, manage rates, and offer delivery choice at checkout. When its operations were wound down following its acquisition by a global parent company in 2019, merchants were forced to replatform fulfilment workflows, renegotiate carrier access, and absorb service disruption during trading periods.

“The lesson from Temando was clear,” Wu said. “When a key logistics platform exits, the impact ripples far beyond the company itself. It exposes how dependent startups and small businesses are on shared infrastructure — and how little margin for error they have when that infrastructure disappears.”

Wu explained that while large enterprises are often able to absorb shocks like the Sendle closure, smaller businesses face a very different reality.

“Big retailers usually have multiple direct courier accounts, established trade references, and enough shipping volume to negotiate terms,” he said. “If one provider exits, they can rebalance volume quickly.”

“Startups and small businesses don’t have that luxury. Without scale or long credit histories, it’s much harder for them to open direct carrier accounts. They’re often last in the queue, with limited bargaining power and fewer alternatives.”

This lack of access also makes it difficult for smaller merchants to manage risk.

“When you only have one egg, you can’t put it in different baskets,” Wu said. “If your volume is small you can’t easily split volume or spread risk. The result is delayed orders, unhappy customers, and immediate pressure on cash flow.”

Industry observers note that repeated exits like Temando and now Sendle highlight a structural imbalance in Australia’s ecommerce ecosystem — one that disproportionately affects the smallest participants.

In response to the Sendle closure, Zappy has focused its efforts on supporting startups and small businesses by providing access to a multi-carrier network without requiring individual courier contracts, minimum volumes, or extensive trade references.

“Our mission has always been to serve the businesses that don’t yet have scale, a lot of our large customers came to us when they were small" Wu said. “We exist to give startups and small merchants access to choice, flexibility, and resilience — so they’re not exposed when a single provider disappears.”

Wu added that while platforms like Zappy can help bridge gaps, long-term resilience will require broader collaboration across the logistics and ecommerce sector.

“If we want a healthy ecommerce economy in Australia, we need to design it for the smallest businesses — not just the biggest,” he said. “Otherwise, we’ll keep repeating the same cycle.”

Businesses affected by the Sendle closure and seeking support to keep orders moving can contact Zappy at www.zappy.au.

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