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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What were they BOTH thinking?
Secondly, why would Amazon be so dumb? I'm amazed at both of them.
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Re: What were they BOTH thinking?
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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Toys R US vs. Amazon
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