‘eBay of the channel’ offers UK resellers a forum to access surplus IT equipment

An online clearing house for IT equipment has launched in the UK channel, providing a spot-market for resellers to buy and sell surplus products.

Dubbed the eBay of the channel, Jellynet offers businesses with small IT budgets easier access to surplus IT equipment that is still in good working order. It also provides resellers and distributors that are losing money by storing surplus IT equipment the ability to profit from disposing of unwanted kit.

Mark Abrahams, managing director of Jellynet, said: “By storing old stock, resellers and distributors are losing money and in many cases the warehouse space they are using is worth more than the equipment.

“There is a big market for companies looking to get more life from their systems because some firms are more price conscious and do not have the budget to update their systems with new equipment.”

Abrahams added: “Companies are still struggling to find the products they need and the aim of the web site is to make buying used and surplus equipment easier.”

The web site will offer products at listed prices for instant sale, rather than via auction. Abrahams said that an auction model would delay purchase and therefore would undermine Jellynet’s rationale.

Jellynet will go head to head with similar US-based web sites that offer services in the UK such as BrokerBin and Powersource Online. However, given its UK-centric approach, Jellynet’s launch has been welcomed by several prominent players in the channel.

Graham Nye, marketing director of distributor Chiltern IT Parts, said: “Anything that can improve access to people’s inventories has to be good for the channel.

“The success of this will depend on how effectively they can make businesses aware of Jellynet and how cost effective it can be.”

Keith Humphreys, managing consultant at analyst firm Eurolan, said: “If this works it will give businesses access to what they need, when they need it, without having to wait around.”