Amazon.com and Toy "R" Us' Toysrus.com formed a strategic 10-year alliance to create a co-branded online toy and videogame store. The new online store is slated for a fall launch. The companies also plan to launch a co-branded baby products store by the end of the first half of 2001. The alliance calls for each company to assume specific aspects of the toy and videogame and baby products stores. Toysrus.com will identify, buy and manage inventory; Amazon.com will handle site development, order fulfillment and customer service, housing both Toysrus.com's and its own inventory in Amazon.com's U.S. distribution centers. The agreement also allows for global expansion of the arrangement. Both companies will market the co-branded store to their customers.
Copyright August 2000, Crain Communications Inc.