An eBay channel-management solutions company called Channel Velocity is helping Philips with its widely publicized eBay auction campaign this week. Royal Philips Electronic is sponsoring a charity auction of the light bulbs used to illuminate the New Year's Eve Ball above Times Square. One hundred percent of the winning bids on the 90 auctions will benefit the American Red Cross Disaster Relief Fund. The charity auction is part of the company's "Next Year is brought to you by Philips" advertising campaign and is running through January 6, 2006.

Channel Velocity is managing the charity auction for Philips. Channel Velocity calls itself a channel-management solutions company - think of them as a Trading Assistant on steroids. It offers companies a turn-key solution to selling on the eBay channel. It stores clients' inventory, which it sells on a consignment basis, and manages all aspects of the listing and fulfillment process. Channel Velocity also manages the client brand on eBay, including protecting the brand through eBay's VeRO (Verified Rights Owner) program. Clients include Milwaukee Tools, Alienware, Belkin, Saeco, Nestle's Nespresso brand and Petsafe.

How did Channel Velocity acquire Philips as a client back in 2004? Another company called Connection to eBay had already sold Philips on the idea of having a presence on eBay, but ceased operations. Philips began accepting proposals from other companies, and a Channel Velocity client recommended them to Philips. Philips is now a Titanium PowerSeller on eBay.

Manufacturers may make the mistake of selling product to liquidators in addition to having a presence on eBay, but that drives down the price, Channel Velocity President and CEO Wes Shepherd said. "I wanted to be more than a liquidation company," Shepherd said. "I wanted to be a marketing and distribution company, one that could be entrusted with the world's biggest brands." He says the higher prices he's able to obtain on eBay also dramatically decreases channel conflict for manufacturers.

Some of Shepherd's secrets to succeeding in the online-auction consignment business: "We're fanatical about setting expectations - no one likes a surprise"; listen to the client; and "you have to create a hero (inside the corporation) to retain the client."

Shepherd said Channel Velocity recently raised close to a million dollars in funding and has had a banner month in terms of eBay sales and in signing up new clients. Shepherd has reason to light up as he rings in the New Year.

http://stores.ebay.com/Philips-Certified-Auctions_New-Years-Charity-Auction

http://www.channelvelocity.com