Amazon’s Partners Are Happy

Apr 07, 2004

By George Anderson

Toys R Us and Target share some three things in common.

  1. Each has signed a long-term contract with to create and run their Web sites.

  2. The two are losing money online.

  3. They publicly express happiness with the relationship with Amazon and how their businesses are developing online.

Toys R Us lost $18 million last year in its online business but the company finds solace in the loss being cut in half from 2002.

A spokesperson for the toy retailer, Susan McLaughlin, told the Puget Sound Business Journal, “We’ve got a 10-year agreement and we’re very happy with the partnership.”

Target also lost money with its online operation, although the exact amount is not known because the retailer lumps this and several other units together in a single line item.

The discount retailer extended its contract with Amazon for five years because, as company spokesperson Lena Klofstad told the Puget Sound Business Journal, “We believe the relationship with Amazon has been successful both for them and for us, so we’re happy to extend it.”

Moderator’s Comment: What are your thoughts on the
Amazon partner program? Does Amazon need to reassess its service fees or other
aspects of its Web site development and operation program for partners?

The Puget Sound Business Journal piece said that
the sales and profit data available from Amazon’s partners is limited and what
“is available doesn’t paint a pretty picture.”

Despite this, Amazon continues to sign-on new partners
and even those such as Target are re-upping contracts. George
Anderson – Moderator

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