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Failures

by Joseph Weisenthal

Thu, Mar 2nd 2006 2:17pm





Amazon Needs A New Toy Box

from the guess-they're-not-really-under-the-hood-after-all dept

Amazon was dealt a blow today, when a New Jersey Court ruled that Toys 'R' Us could void a 10-year agreement that had the online retailer running their internet operations. The basis for Toys 'R' Us' complaint was that Amazon, by allowing independent retailers to sell toys on the site, wasn't upholding a promise of exclusivity in the toy department. At the time this case emerged, it seemed that Amazon would be just fine if the troubled toy-seller decided to leave. What a difference two years makes. Today there are serious doubts, after all this time, as to whether the company's core retailing business is even profitable. After losing Toys 'R' Us, and last year The Gap, the company's main money-making division may be in serious trouble. Besides, who needs a convenient centralized shopping site anymore, when you can now go shopping from the edge.

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  1.  
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    Steve, Mar 2nd, 2006 @ 7:21pm

    What were they BOTH thinking?

    First of all, what in the world is Toys R Us doing signing a TEN year exclusive contract? Anyone in technology knows the online world reinvents itself about every two years.

    Secondly, why would Amazon be so dumb? I'm amazed at both of them.

     

    [ reply to this | link to this | view in thread ]

  2.  
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    Sarojin, Mar 2nd, 2006 @ 10:33pm

    Re: What were they BOTH thinking?

    Because when they signed the deal their CTO was well-versed in SNA and 3270 Terminal emulation?

    Can't imagine a company that still has cave-man business practices today was able to fully comprehend the alternate time scale and financial nuances of the tech sector back then.

    I bet they both thought the other crazy for agreeing to a 10 year deal.

    But back then it could take up to 2 years to get a viable retail site up and running. None of those fancy tools around yet.

    And employees would have been much harder to find and much more expensive to hire.

     

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  3.  
    identicon
    Toys, Nov 12th, 2009 @ 6:15pm

    Toys R US vs. Amazon

    Toys R Us and Amazon would have made a likely pair, but Toys R Us should never sign such a long contract with anyone. It's also too easy for Amazon to start a price war because of all the vendors. The online giant won't be hurt too bad without Toys R Us.

     

    [ reply to this | link to this | view in thread ]


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