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Mon June 21 2010 17:40:37

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

By: Ina Steiner

Sponsored Link

ChannelAdvisor has confirmed that Chief Revenue Officer Michael Jones has left the company, and rumor has it he'll end up at eBay working on its Large Merchant Services program that works to move product catalogs from large retailers and manufacturers on to the site. Michael (also known as MJ) has worked for several companies for Scot Wingo and Aris Buinevicius, beginning with StingRay in 1998 and AuctionRover in 1999. (See update below.)

ChannelAdvisor President and CEO Scot Wingo issued the following statement:

"After a great 10-year run with ChannelAdvisor, MJ is leaving to pursue other interests as of June 30th. MJ has always been an asset to the ChannelAdvisor family; and while we're sad to see him go we support his decision and wish him all the best in his future endeavors. MJ will certainly be missed, though in many ways he leaves ChannelAdvisor a well-oiled machine, so we'll continue business as usual as we look to fill his position."

Michael was Chief Revenue Officer responsible for worldwide sales, account management, inside sales, marketing and business development. A former ChannelAdvisor employee blogged about the departure, writing that, "after consistently failing to reach revenue targets, rumor has it that the split was not a case of greener pastures but of a nudging-out-the-door-nature. What this will mean for CA is unknown."

eBay has a stake in ChannelAdvisor (supposedly between 15 - 25%), which competes with Mercent to manage larger retailers and manufacturers' catalog feeds on marketplaces and comparison engine shopping sites, and competes with eBay inventory-management service providers.

Scot's statement gives credence to rumors that the departure was abrupt, given that ChannelAdvisor has not hired a replacement and that Scot did not announce where Michael would be headed to next. I'll update this post when I learn more.

Update - More information from ChannelAdvisor and confirmation from eBay:
eBay confirms that Michael Jones will be joining the company as Vice President of North American Business Development for eBay Marketplaces. A ChannelAdvisor spokesperson said he has not yet left the company; he's actively working in the office until June 30th, and, she said:

"Your source indicated that MJ was "consistently failing to reach revenue targets," yet we've reported record growth for ChannelAdvisor and its customers in our past three quarters: link, link, link.

"In the interest of full disclosure, I think you owe it to your readers to let them know that that blog post was written by a former ChannelAdvisor employee who now works for a competitor, Mercent."




Comments (20) | Permalink

Readers Comments

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Troglodyte

Mon Jun 21 19:07:44 2010

Maybe Donahoe would like to hire ALL the people whose careers/jobs he's ruined in the last two and a half years.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Steve

Mon Jun 21 20:50:53 2010

Did Donahoe recruit this one himself?  It is in line with his "we love only large sellers" theme.   I wish Donahoe would just leave and go create an e-commerce for his beloved large sellers.

Wingo must feel betrayed or better yet, ticked off that he wasn't asked to join them.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Connect the Dots...

Mon Jun 21 21:40:58 2010

This is not good news for ChannelAdvisor. Think about it. There are just a few third-pary vendors handling large merchant services for eBay. And suddenly, one of the principals from one of those firms is now working for eBay. Would you be surprised to see CA's clients jump ship to be handled directly by eBay? I wouldn't.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: yazrallah

Mon Jun 21 22:39:00 2010

He's fluent in Chinese eh?

他必須講漢語語言
金剛石賣主第一

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: mynameis

Tue Jun 22 00:08:12 2010

Michael Jones was given the CA revenue reins in late 2008 after pushing out the VP of Sales in what was rumored to be a very unprofessional handling of the situation. Rumor has it the former VP of Sales was the only executive at CA in 2008 to hit goal attainment.  Due to macroeconomic headwinds the revenue goals for 2009 were adjusted downward to a ridiculously low number.  Anyone in that position could've hit them.

Michael Jones was one of the founders of CA.  He was a fixture at CA and had every intention of staying at CA and seeing it through to exit.  There's only one logical conclusion to his abrupt exit.

Look out eBay.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Crystal Ballz

Tue Jun 22 10:35:42 2010

Going to ebay? Hope he fails. And he will.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Lars

Tue Jun 22 11:04:04 2010

I'm still waiting for Donahue to hire small seller recruiters.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Troglodyte

Tue Jun 22 12:29:13 2010

Now that "MJ" has migrated from the Gray Side to the Dark side, hold on to your photos, commodity sellers.

Consider that ebay's catalogue is a thinly disguised beginning to selling product. They'll have your photos, descriptions, and SKUs.

Watch for ebay to develop an interest in renting or building warehouses.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Blooms Over Bloomsbury

Tue Jun 22 13:31:02 2010

Sounds like eBay has a plan.  An evil backstabbing meniacal plan.  Donahoe is very much like Mr. Burns on The Simpsons but not nearly as good looking.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Patricia This user has validated their user name.

Tue Jun 22 14:01:49 2010

Nothing like joining a losing team to bring one's ego back down to normal!  LOL

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: ahh duh

Tue Jun 22 14:19:33 2010

So, this guy got canned because he couldnt reach revenue expectations?

Well, then he'll be a perfect fit at ebay. Because they cant reach them either!

What's the matter ebay? cant find anyone with a good track record thats willing to work on the titanic?

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: another side of the coin

Tue Jun 22 15:34:14 2010

Rumour or fact? I read somewhere recently that eBay was already building warehouses in several locations across the US. Sounds a lot like Amazon, doesn't it?

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Digby
Web Site

Tue Jun 22 15:55:16 2010

The more ebay goes for the big sellers, the worse for all the little guys.

Just another reason for us small sellers to keep building our own websites and joining one of the top three or four alt sites.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Ebay No More This user has validated their user name.

Tue Jun 22 16:43:42 2010

Who cares? Shuffle the deck and it doesn't really matter where this guy works. Ebay owns enough of Channeladvisor to keep them obedient like a lapdog. Ebay has firmly attached themselves to the major retailer wagon this year. That's okay it's not going to improve anything for Ebay but it keeps them busy tying themselves in knots while the rest of ecommerce raises their marketshare. I hope Ebay remains distracted for a long time to come. Then it can quietly implode or they can sell Ebay to Alibaba and their forty million Chinese thieves.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: EventHorizon1984
Web Site

Tue Jun 22 16:54:16 2010

> ''yet we've reported record growth for ChannelAdvisor and its customers in our past three quarters: link, link, link.''


These are standard vacuous Press Releases.  Of course those Press Releases avoid answering the question of ''revenue targets.''


Press Release #1 talks about the growth of ChannelAdvisor INC customers during that quarter.  But there is not one mention of ChannelAdvisor INC revenue during that quarter.

Press Release #2 has ChannelAdvisor INC CEO Scot Wingo stating, ''For ChannelAdvisor, 2009 was a fantastic and transformative year as we achieved our profitability goal of becoming EBITDA positive''.  Of course there is no mention of any objective dollar amount.  And what of ''EBITDA''?

ChannelAdvisor INC Press Release #3 makes the same claim, ''for the 12 months ending September, 2009, ChannelAdvisor achieved for the first time in company history a full year of positive EBIDTA '', but there is more.  Here's the rest of the quote following the ''positive EBIDTA'': ''(earnings before interest, depreciation, tax and amortization.''  Incidentally EBIDTA stands for Earnings Before Interest, Taxes, Depreciation and Amortization.

If earnings are ''positive'' BEFORE taking out expenses, one has to wonder if earnings would remain ''positive'' AFTER expenses.  The ChannelAdvisor INC Press Release is woefully silent.

Perhaps earnings AFTER expenses misses the ''revenue target''?  Or perhaps something else?

There are interesting pieces of data that ChannelAdvisor INC provides in it's Press Releases, that might explain whether ''revenue targets'' are being hit or missed.  At the bottom of each of these Press Releases:

Press Release #1 dated April 26, 2010:
''In 2009, ChannelAdvisor managed $2.6 billion in gross merchandise value (GMV)''

Press Release #2 dated January 20, 2010:
''In 2009, ChannelAdvisor managed $2.6 billion in gross merchandise value (GMV)''

Press Release #3 dated November 3, 2009:
''In 2008, ChannelAdvisor managed over $2.6 billion in gross merchandise value (GMV)''

If you look at ChannelAdvisor INC Press Release dated January 23, 2009 (
http://www.channeladvisor.com/news/2009/pr090123.html ), you will find:

*  ''for the full year, ChannelAdvisor recorded GMV of $2.6 billion.''

Fascinating.  ZERO GMV growth, as stated by ChannelAdvisor INC, between 2008 and 2009.  To state the obvious, ChannelAdvisor INC derives some revenue by assessing a fee on sales (percentage of GMV).

How much does ChannelAdvisor INC make on that ''$2.6 billion'' From It's Customers?  According to that Press Release, ''for the full year, ChannelAdvisor recorded revenue of over $35 million.''

Let's put that amount in perspective.

eBay seller Buy.com (bought by Rakuten), who is also a ChannelAdvisor INC customer, earlier this year had 30 day gross sales of $2.5 million.  Or using a very very rough calculation, that could be $30 million in sales for a year.

Here's what you'll find in another ChannelAdvisor INC Press Release dated September 04, 2008:

''ChannelAdvisor, the leading provider of e-commerce channel management solutions, today announced it has received an additional $20 million in funding to accelerate its growth.''

When you have ''$35 million'' ''recorded revenue''  (Net or Gross?), a $20 million cash infusion (with eBay as one of the investors) is a significant amount.

Maybe this cash infusion did not produce an appropriate increase in revenue, thereby missing ''revenue targets''?


Hmmm, maybe these press releases are not so vacuous after all.

/*

''but like a poor marksman, you keep missing the target''
Admiral James T. Kirk, Star Trek The Wrath of Khan (1982)

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: Ron

Tue Jun 22 22:51:24 2010

Channel Advisor?  The only advice that a large distributor/retailer needs regarding “channels” is to establish their own search engine optimized website.

Any reputable company of a certain size with its own brands would never allow their brand to be exposed to contamination by a third party site.  Companies protect their brands by tightly controlling the marketing of their products and part of that control involves presenting their product favorably and with competent customer service processes.  

Why any such company would allow their product to appear on eBay alongside competitive products, cheesy advertisements and links to other sites is difficult to fathom.  And that’s not to mention the cost that eBay adds to the process in the form of fees.  It doesn’t take a CA to figure out that in the long run a self-administered website is much cheaper than paying the type of fees that eBay extorts.

The only large sellers that eBay can attract are those that are not concerned with brand, in other words, liquidators and sellers of substandard/cheap items that are not brand worthy.  And if there are distributors of branded goods on eBay, they’re only there for the short haul, taking advantage of whatever drawing power that eBay still has, but is surely losing due to their focus on large sellers.  

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: mynameis

Tue Jun 22 23:07:06 2010

Vacuous or not, something is rotten in Morrisville, NC and it looks like the Board/Executive leadership thought it was Michael Jones.  He's clearly been ousted. He paraded around while Chief Revenue Officer (a laughable title altogether) and obviously thought ChannelAdvisor was ''his'' company.  

Like a small child playing with toys, impulsive and prone to breaking things, the powers-that-be at ChannelAdvisor apparently grew tiresome of his actions (and inactions).

Karma is alive and well.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: michael J

Wed Jun 23 13:39:27 2010

"""The only large sellers that eBay can attract are those that are not concerned with brand, in other words, liquidators and sellers of substandard/cheap items that are not brand worthy.  And if there are distributors of branded goods on eBay, they’re only there for the short haul, taking advantage of whatever drawing power that eBay still has, but is surely losing due to their focus on large sellers.""""  

A agree 100%.

I started selling on ebay just before they went IPO. I own a very successful independent REDOL in spite of ebay abandoning the whole TA platform. I have seen the site grow from a social selling site (just what the social sites are now maturing into) to just what was described above. A street level liquidation market. Fleabay!



Ebay was a leader in its field. They now seem to be happy as a follower. And a bad one at that!

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: mynameis

Mon Jun 28 09:33:13 2010

This thread is dead just like the two companies and the "executive" the article is about.  How apropos.

Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay   Update: Michael Jones Leaves ChannelAdvisor, Headed for eBay

by: sweetjustice

Fri Jul 16 06:47:14 2010

For a start the VP Sales in 2008 was not the only senior manager who exceeded sales and got booted out by the MJ mafia - look at Kasuba, Gibson, and Van Veenendaal in Australia - all who were exceeding budgets.  The stink set in when MJ did the dirty deal behind richfx - it stank with insider trading and got covered up.  Then the so called resignations by those that spoke up!  Next the loyal CA workers went, then for a company that so called reported GMV there was an internal political debarcle on how to actually 'define GMV', and if a company is growing at such a rate why more venture capital, leaving debts worldwide.  MJ is just one that is running away from an imploding nuclear bomb.  Like the old starwars - the force is not with them any more they have moved to the dark side... shame.



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