Wednesday, February 07, 2007

Toys 'R' Us to End Amazon Partnership

Latest development in the e-tailing giants Toys 'R' Us and

The partnership started 10 years ago is going to end very soon as internal conflicts, introduction of other sellers in the website and other reasons.

"Toys 'R' Us sued Amazon in May of 2004, seeking to terminate an agreement struck in 2000 under which Amazon handled online sales for the retailer. The toy seller had sought US$200 million in damages, claiming Amazon had violated the terms of the deal by allowing others to sell toys through its site."

"Amazon had countersued, saying the toy retailer had left Amazon without sufficient inventory to fill orders."

"Other retailers also have weaned themselves from Amazon, including Circuit City, which cut ties last year after a four-year partnership that was seen lagging expectations throughout."

"Target, the discount retailer that has a third-party arrangement in place with Amazon for certain goods, including apparel, could expand its relationship with Amazon to include toy sales."

For more information, read this article from the

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