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Amazon Goes on Without Toys ‘R’ Us

Jul 5, 2006

Amazon.com today announced its new path in babies and toys.

Months after a court-ordered divorce from Toys ‘R’ Us, Amazon has launched its new toy and baby stores.

Amazon’s new toy store will carry popular
brands such as Fisher-Price, Hasbro, LeapFrog, Lego, Mattel, and
Vtech, according to a statement.

The baby store will sell products from brands including Baby
Bjorn, Babylicious, Evenflo, and Elegant Baby.

In addition to Amazon’s toy and baby inventory of products, it will also sell items from Target, eToys, Discovery Channel Store and Baby Style.

It’s exactly this kind of liberal brand play that got Amazon in
trouble with Toys R Us.

The partnership, announced in August 2000, included distribution, warehouse storage and logistics, customer service, hosting, custom software development and systems development and maintenance on the Amazon.com platform, plus a tab level for “Toys and Games and Baby Products.”

Toys ‘R’ Us paid a reported $200 million for the deal, which, according to the terms, was to be an exclusive one.

But instead, Toys ‘R’ Us caught Amazon selling other merchants’ wares, including Discovery Channel toys and eToys products.

So Toys ‘R’ Us sued, saying it was
supposed to be “the only authorized seller of Toy and Game and Baby
Products on the Amazon.com platform through 2010.”

A Chancery Court in New Jersey agreed with Toys ‘R’ Us, and ended the partnership.

Amazon spokesperson Patti Smith told internetnews.com the company really couldn’t be in a better place.

“Our mission has always been to offer customers the most selection
possible and with the new Toy and Baby Store we’re able to offer our
customers two times the selection that our former partner was able to
offer. “

Toys ‘R’ Us did not return a request for comment, but a quick visit to Toysrus.com reveals a site free of the Amazon.com brand.

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