E-Commerce Solutions - Upstarts As E-commerce Solutions Providers

UPSTARTS AS E-COMMERCE SOLUTIONS PROVIDERS

Amazon.com The upstart who has, perhaps, had the easiest time developing its e-commerce solutions is Amazon.com. The online retailing giant was simply able to license its already existing, highly successful e-commerce platform, complete with features like its patented one-click checkout, to other e-tailers struggling to move into e-commerce. Toyrrus.com was the first online merchant to use Amazon's technology to power its site when the two firms agreed to relaunch toysrus.com as a co-branded site in August of 2000. Amazon also agreed to take over inventory, customer service, and shipping services. According to the terms of the deal, Amazon receives a base fee, as well as a commission on each toy sold on the site, for allowing toysrus.com to use its software. The deal also proved lucrative for toyrus.com; with Amazon technology underlying its infrastructure, the site saw its holiday sales grow more than threefold. In April of 2001, Borders Online Inc. reached a similar agreement with Amazon, as did United Kingdom-based specialty book vendor Waterstone a few months later. Some analysts believe Amazon's ability to market itself as a full-scale e-commerce solutions provider will be a key factor in whether or not the firm achieves profitability.