Amazon quietly signs deals with more retailers to run their web sites
Amazon.com Inc. has never made a secret of the fact that it plans to develop more partnership deals like its arrangements with Toys R Us Inc. to operate the web sites of well known retail chains or its agreement with Target Corp. to host another retailer`s goods at Amazon. The fact that it has not announced any lately does not mean the concept is dead, Jeff Bezos, CEO, told the Direct Marketing Association’s Annual Catalog Conference Tuesday. In fact, far from it--Bezos said Amazon is developing relationships with 30 catalogers and other retailers, most undisclosed.
Bezos characterized such agreements as the layering of what one company does well--selling a certain type of product--with what another company does well--performing all the tasks that go into selling on the web.
Bezos did announce a new agreement with a retailer during his keynote address Tuesday morning when he brought one of the owners of J&R Electronics onstage to announce an agreement to list the Manhattan-based consumer electronics retailer`s merchandise on the Amazon site.
Amazon is not concerned that such arrangements might cannibalize Amazon’s sales, Bezos says, because there is no way any retailer can develop expertise in all product categories. Amazon benefits by selling the services that make online retailing possible and such arrangements allow Amazon to quickly become involved in selling on the web anything anyone could want to buy. “There’s no other way to accomplish our vision,” Bezos said.
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