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Amazon, Toys 'R Us share b-to-b risk

Published on .

New York--Hoping two wrongs do make a right, Toysrus.com and Amazon.com Thursday announced they are combining their online toy operations. Last Christmas season, each bungled a different aspect of their b-to-b strategies. Toysrus.com was able to leverage the sourcing and inventory management strength of its brick-and-mortar stores, but utterly failed in fulfilling and distributing orders. Toysrus.com reportedly paid the FTC $350,000 in fines for messing up Christmas orders last season. Amazon.com, meanwhile, without deep toy supplier relations and no experience forecasting demand for toys, had major problems keeping the right toys in stock. Together, the two hope to do better, with Amazon running the online operations and Toysrus.com managing the inventory for a jointly branded online store.
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