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To: Bill Harmond who wrote (10854)	3/15/2002 9:41:52 PM
From: techanalyst1	Respond to of 57684

Well there ya go. I think amazon can partner with any general merchandiser, but the fact of the matter is that no other retailer carries the extensive products that Toy does. NONE. Do they want to start doing that? Do they have the shelf space in their stores? Nope. I think Toy has leverage in that case and it's strengthened if Amazon's other vendors are whining too. It might be easy to put Toy off, but more difficult if their other vendors don't wish to lose money by adding that service. Course, Amazon could just say, "forget it, we have a deal" and maybe Toy is stuck in that case or they could just tell Toy to go take a hike and not sell toys at all. Would that be bad for Toy? Um. Maybe not. They're losing money selling on line anyway. They might just jump at the chance to get out of the whole deal. Maybe Amazon could go with Kay Bee Toys or maybe Etoys makes a comeback. Pets.com did. And if they partnered with Amazon, maybe they'd actually survive this time, but not if they were losing money (and I have my doubts that selling solely on line is a viable business model anyway, or amazon wouldn't need a partner at all)... so Amazon would have to offer better terms. Neither offers the Babies R Us line, neither has proprietary products... so what's the advantage in changing vendors? None. Personally I doubt that any terms were changed, or either Toy or Amzn would have announced that and they haven't. That doesn't mean it won't happen in the future though. They have renegotiated contracts in the past. msnbc.com TA