ChannelAdvisor Acquisition of Marketworks Update
This is an update to the acquisition of Marketworks by ChannelAdvisor that I posted earlier. I have posted what I have found to be some bullet points of information on the Marketworks acquisition. These were various sources written about the acquisition that I have compiled and some other thoughts about the merger.
- ChannelAdvisor will cut Marketworks staff by about 50%
- Most all changes seems to be geared at the Marketworks customers, nothing I could find on existing Channel Advisor's customers having to change anything
- Not many details known about future implications, most everyone online is quoting the original press release
- Sounds like ChannelAdvisor will keep both channels functioning independently for a time, then move everyone over to the Channel Advisor side
- There are implications about this happening because of a slow down on ebay, and that Marketworks was not a well run company
- Found MANY posts that were totally unhappy with Marketworks product line and features
- Infopia and Zoovy may have to change tactics because of this move
The quotes below are just little plugs I thought some might find of interest on the subject. I have put most of the feeds from various sources of the news on my rss feed reader to stay on top of any changes that might be coming
- It will allow customers to move from one platform to the other. ChannelAdvisor CEO Scot Wingo said of Marketworks, "They have some large customers that have been interested in moving to ChannelAdvisor over the years, but there hasn't been a great way, an automated way, of getting them over. So we're going to create bridges both ways." http://www.auctionbytes.com/cab/abn/y07/m09/i12/s02
- "We may choose to rebrand to make it clear. But (Marketworks) will be a product offering of ChannelAdvisor rather than a separate company."
- ChannelAdvisor will continue to support and invest in Marketworks' customers and products. http://biz.yahoo.com/bw/070912/20070912005384.html?.v=1
- What is clear; this will be a blow to Salt Lake City based Infopia as ChannelAdvisor gets stronger. Look for a possible marriage between Zoovy and Infopia in the near future.
- One last point, that may have been overlooked. This acquisition and possible further consolidation in the space are definitive signals that eBay is slowing down . Marketworks, may have seen their growth hit the ceiling and decided this approach was one of a few options. I certainly don't think it is a sign that the eBay Marketplace is healthy. A few years ago eBay could support many large service providers and sellers; not anymore. http://rksmythe.blogspot.com/2007/09/channel-advisor-aquires-marketworks.html
- The biggest downside of both companies is the buying experience on eBay. Both companies have a customized eBay checkout enabling them to cross sell additional products from their own website. Buyers in general are not comfortable with a non-standard eBay checkout and some buyers avoid sellers using either solution simply for that one reason. If ChannelAdvisor want to attract more eBay sellers they need to implement a option without a custom checkout which still updates the sellers inventory. http://www.tamebay.com/2007/09/channeladvisor-vs-marketworks-war-is-over.html
- I doubt CA is going to want to support the Marketworks system long-term, and I doubt they are going to want to put resources into making it better
I will continue to update the information on this topic as it becomes available.