CHANNELADVISOR ANNOUNCES CHANNELADVISOR LABS
Engineering group focused exclusively on innovative online sales channel technologies launches with two new beta solutions

Research Triangle Park, NC – June 29, 2006 – ChannelAdvisor today announced the formation of a new technology group called ChannelAdvisor Labs.  Co-founder and CTO, Aris Buinevicius will focus exclusively on leading the group.  ChannelAdvisor Labs is chartered with building on ChannelAdvisor’s foundational innovations for helping merchants of all sizes take advantage of various online channels.  ChannelAdvisor Labs can be found online at: http://labs.channeladvisor.com .

“Five years ago on July 1, 2001, ChannelAdvisor spun out of Overture (now part of Yahoo!) with the mission to help merchants leverage online sales channels and today our customers drive over $1.2 billion annually in online sales,” said Scot Wingo, Chief Executive Officer of ChannelAdvisor.  “The creation of ChannelAdvisor Labs will guarantee that we continue to relentlessly execute on our mission by creating innovative new ways to help the World sell online.”

In addition to launching ChannelAdvisor Labs, two beta offerings are being introduced:

• Customer Communication Center (C3) – C3 gives eBay sellers a hosted, software-as-a-service system for managing all of their messages from prospective and existing buyers/bidders.  One of the top challenges facing merchants is the large number of inbound inquiries about products.  C3 allows the merchant to record, manage and in many cases automate these communications.  In late 2005, eBay introduced the “yellow button” system that suggests prospective customers hide their email addresses, thus requiring sellers to use eBay’s “MyMessages” to answer the emails.   

C3 solves this problem by using eBay APIs to programmatically answer “yellow button” messages thus freeing merchants from having to use eBay’s MyMessages system.  Initially, there is no charge for the C3 beta and the program is open for all eBay merchants.

• Direct2Search (D2S) – D2S  aggregates products for sale by merchants who are interested in selling via Google Adwords, Yahoo! Search Marketing and MSN AdCenter and in the future, other sales channels.  D2S leverages the combined products to automate and optimize paid-search spend and enable the aggregation of merchants to spend more and achieve much higher results than they would individually.  For example, several men’s apparel merchants would be able to improve their paid-search economics by leveraging their products to increase effective conversion rates.  The D2S beta is initially open to existing ChannelAdvisor customers only.   Participating merchants will pay ChannelAdvisor a success or final-value-fee, but no listing fees to participate.

Both C3 and D2S are beta offerings supported using online forums. C3 is available to USA and UK based sellers.  D2S is limited to USA based existing ChannelAdvisor customers.

“We’re excited to formally launch ChannelAdvisor Labs today while simultaneously introducing two innovative new solutions that we think will not only help our customers take their businesses to the next level, but set the stage for future ChannelAdvisor Labs offerings”, said Aris Buinevicius, ChannelAdvisor CTO.

More information on ChannelAdvisor Labs is available at http://labs.channeladvisor.com.

About ChannelAdvisor Corporation
ChannelAdvisor Corporation provides technology and services that enable leading online retailers to maximize their products across multiple e-commerce marketplaces such as eBay, Amazon.com and Overstock.com, comparison shopping engines such as Shopping.com, Shopzilla, Nextag and Google Product Search and search engines such as Google, Yahoo! and MSN. In 2006, ChannelAdvisor managed over $1.6 billion in gross merchandise value (GMV) on behalf of its customers. ChannelAdvisor solutions combine best practices, on-demand software and integration technology to help retailers sell more products, faster, by automating labor-intensive, manual functions so they spend less time optimizing campaigns and more time solving marketing and business issues. ChannelAdvisor's customers include GSI Commerce, Sears, Brookstone, Abebooks and Motorola. ChannelAdvisor Corporation is headquartered in Research Triangle Park, NC with offices in Atlanta, Seattle, the United Kingdom, Australia and Germany. For more information, visit http://www.channeladvisor.com/.

Contact:
Ashley Jones
ChannelAdvisor Corporation
Ph: 919.349.4177
ashleyj@channeladvisor.com