RealTime IT News, Unite and Thursday teamed to create a new online store offering a variety of toys and video games.

Once the new toy and video store is up and running at in the fall, the site will serve as a gateway that redirects users to the new outlet's location.

Additionally, and will extend the success of the recently launched with the debut of a co-branded baby products store during the first half of 2001.

The alliance unites two leading retailers -- one in brick-and-mortar retailing, one in e-commerce -- to create a better online shopping experience, noted Jeff Bezos, founder and chief executive officer.

"This is a huge win for our customers," said Bezos. "Our existing toys and games business has grown rapidly because customers appreciate our passionate focus on selection and customer experience.

By joining with Toys "R" Us, we're bringing customers an even greater and more diverse product selection and teaming up with a leading resource for toys, games and baby products," he said.

Each company will assume responsibility for specific aspects of the toy and video games and baby products stores. will identify, buy and manage inventory; will handle site development, order fulfillment and customer service, housing both's and its own inventory in's U.S. distribution centers. will be compensated through a combination of periodic fixed payments, per unit payments and single-digit percentage of revenue. The specific amounts of the payments were not disclosed.

It's a nice, complementary deal, according to Forrester senior analyst Seema Williams.

"Amazon does not do all that well selling toys, Toys R Us doesn't do that well selling online. It's definitely solving the biggest problems both of them have."

Williams added that a 10-year deal is "very uncommon, particularly in a Web environment, where most agreements do not exceed two years.

The agreement allows for global expansion of the arrangement. will also receive warrants entitling it to acquire 5 percent of

All parties will market the co-branded store to their respective customers.

According to Media Metrix, a source of Internet and digital media measurement, was the number-one-ranked online toy site for April and May 2000.

Amazon already has partnerships with online retailers such as Inc. , Inc. and Inc. .

Amazon said last week that most of the revenue booked through its network of such Internet partners came in the form of stock in those companies.