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Strategies & Market Trends : The New Economy and its Winners

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To: Glenn D. Rudolph who wrote (3702)	12/5/2000 9:16:59 PM
From: Libbyt	Read Replies (1) of 57684

33% of Amazon traffic is going to Toy R US. Glenn, If you have ever been to a Toys R Us store in December, you know that you would pay any price to not have to shop there at this time of year!!! It was my understanding that all Toys R Us on-line sales were being handled by Amazon under their August agreement. I'm sure that some Amazon customers are directed to Toys R Us, and might buy some of their order from this store...but I would still think that this would be a win/win for both companies. Libbyt yahoo.cnet.com "The deal with Amazon could help alleviate some shoppers' concerns, as Toysrus.com will be handing off those fulfillment responsibilities with the co-branded site. Shoppers will be able to access the co-branded site via Amazon's home page as well as through Toysrus.com. Orders will be completed and shipped by Amazon's order fulfillment department. Under the terms of the deal, Amazon will be compensated periodically through a combination of fixed payments and single-digit percentages of revenue. The payments are designed to cover Amazon's order fulfillment expenses. In addition, Amazon said it will receive warrants entitling it to acquire 5 percent of Toysrus.com. Amazon and Toysrus.com, as well as Toys "R" Us, intend to market the store to their respective customers. The toys and video-game site is slated to launch this fall, and the baby-products store is set to launch in the first half of next year."

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