It's been a long time since Toys "R" Us managed its own e-commerce sites and its previous attempt was a notable failure. So, is the retailer ready to take another shot at going it alone? Yesterday's announcement that the company is in the process of bringing its U.S. e-commerce operations in-house with a goal of launching new Toysrus.com, Babiesrus.com and FAO.com websites next summer suggests management thinks it is.
Toys "R" Us began using Amazon.com to manage its online operations following the holiday season of 1999 when its sites, then managed internally, experienced frequent crashes. As The Record reports, the company was subsequently fined by the Federal Trade Commission for its failure to deliver holiday orders on schedule.
In 2006, Toys "R" Us left Amazon for GSI Commerce, which was later acquired by eBay Enterprise in 2011.
Source: toysrus.com
"As part of our 'TRU Transformation' strategy, one of our most important priorities is to optimize our e-commerce business and significantly improve the customer experience online. To accomplish this, we believe it is in our best interest to manage and control all aspects of our e-commerce platform as we move forward," said Fred Argir, senior vice president, chief digital officer, Toys "R" Us, Inc., in a statement. "We expect this will provide us with the flexibility needed to grow and expand in an omnichannel world, while allowing us to rapidly respond to changing customer dynamics and an ever competitive marketplace."
The decision by Toys "R" Us to go it alone comes as another blow to eBay as it moves closer to spinning off PayPal and seeks a sale of its Enterprise unit. According to Internet Retailer, Dick's Sporting Goods is in the process of switching to its own platform by early 2017.
- Toys "R" Us, Inc. to Develop and Manage New Platform For Its U.S. E-Commerce Business - Toys "R" Us, Inc.
- Toys "R" Us to move e-commerce operations in-house - The Record
- EBay's Enterprise Unit Takes a Hit Amid Sale Talks - The Wall Street Journal (sub. required)
- Toys 'R' Us makes a big e-commerce play - Internet Retailer