Amazon may have gained Zappos, but it's losing Target

By Tim Conneally | Published August 7, 2009, 4:39 PM

The U.S.' second most popular retailer, Target announced that it will be ending its 8-year relationship with Amazon.com and launching its own new platform for Target.com, which does not rely on Amazon's services.

Steve Eastman, president of Target.com said, "The strength of Amazon's technology and fulfillment services has been a contributing factor in Target.com's success. However, to deliver a customized multi-channel experience for Target's guests, we believe it is in Target's best interest going forward to assume full control over the design and management of Target's e-commerce technology platform, fulfillment and guest services operations."

By the holiday season of 2011, Target.com will be a fully independent platform. Until that time, Amazon and Target will continue to work together to improve upon its current state.

Amazon is America's highest grossing Internet retailer, with $19.2 Billion in sales a year. Target, meanwhile, remains in close competition with its chief rival Wal-Mart in both the physical retail space and online. In May of this year, for example, Wal-Mart attracted more visitors to its site, but Target led in purchase rate.

Comments

View comments by with a score of at least

ABOUT TIME...only major store ive ever seen since toys r us where u cant buy online and pick up in-store

Score: 0

|

Goodbye! Got screwed over by Target and Amazon CSR's when they sent my daughter the
wrong size clothing. I have never used their online site again after the run around trying to order and the run around trying to get the order corrected.
I tell everyone I know how bad their site blows.

Score: 0

|

"to deliver a customized multi-channel experience for Target's guests"

Translation: 8 years ago, we couldn't hire enough technical talent to do better than Amazon could do for us. Today, it's an employer's market and we want to run our own site so we can stop paying Amazon a cut of every sale (on top of the monthly fees). But that makes us sound greedy, huh? So let's just say it's all for the sake of our "guests" (and the children of the world...and cute cuddly puppies...and mom's apple pie).

Score: 0

|

All the better, Target's poor quality, high prices, and terrible customer service never really fit with Amazon anyway.

Score: 0

|

PDC 2009: What have we learned this week?

There was the freebie that no one will forget, the heebie-jeebies courtesy of Scott Guthrie, and a teensy bit clearer picture of how this cloud thingie should work.

Live report: Will Google Chrome OS change Linux?

The mysteries of just what Chrome OS is, and how much of an operating system it truly is, may be resolved today.

PDC 2009: Microsoft cares about Web browser performance

The effort to give users of the world's dominant Web browser the impression of quality, is a personal one for the man who leads that battle.

Nokia re-affirms its commitment to Symbian, sort of

Maemo won't necessarily be replacing Symbian in the Nokia N-Series, but that's definitely a place where it will be found.

E-book readers will be in short supply this holiday season

E-readers are hot this year, and a lot of compelling new products have been released, but are there enough electrophoretic displays to go around?

Sony looks to finally open a single storefront for downloads

Sony has had many different download portals for movies, music, e-books, and games, and now it's looking to make a single shop for all of it.

Tuning out the tablet: Time to give the endless speculation a rest

Wide Angle Zoom: Wishing and hoping and thinking and praying....won't put an iTablet on the market.

Five improvements for IT managers in 2010

If businesses are to improve their efficiency for next year, they need to stop and reassess the basic tenets of their job.

AOL's spinoff from Time Warner to shed 2,500 jobs

As AOL moves toward become an independent company again, it will cut nearly a third of its workforce.

Gartner: SMS-based money transfer will be bigger than mobile browsing, search

Gartner issues its predictions for the 10 things our phones will be doing in 2012.

Don't forget to upgrade to Firefox 3.6 beta 3 today

Mozilla has released the latest beta its Firefox 3.6 browser software, just over one week after beta 2.