Brad Posted August 10, 2009 Share Posted August 10, 2009 Story: http://online.wsj.com/article/SB124966204168614785.html?mod=dist_smartbrief Target Corp., beset by declining sales in stores and online, said it plans to build its own retail Web site in time for the 2011 holiday season and will then end its relationship with e-commerce powerhouse Amazon.com Inc. Since 2001, Target has outsourced nearly all of its online operations to Amazon. The Seattle e-commerce giant provides software to run the existing Target.com Web site and also hosts the sale of Target goods directly through Amazon.com. In addition, Amazon runs the call center and most of the warehouse operations for Target as well as shipping the products to customers and handling customer service. arget won't renew its contract with Amazon when it expires in 2011 so that Target has the flexibility to add new capabilities and functions to its own Web site, said Target spokeswoman Kelly Basgen. The retailer also expects to realize financial benefits, she added. The company hasn't said whether it will continue to sell its goods through the Amazon.com site. Amazon still runs Web sites for companies including Marks & Spencer PLC and Timex brand watches. The company declined to say what percentage of its third-party sales come from Target. "We remain focused on delivering on-going success" to our large sellers, said Amazon spokesman Drew Herdener. Minneapolis-based Target is the fourth most popular online retailer in U.S., after Amazon, Apple Inc. and Wal-Mart Stores Inc, according to comScore Inc., a marketing research firm. But Target is the only retailer among the top five whose June traffic declined compared with a year earlier, though the drop was modest. While traditional stores have been battered by the recession, online retail sales have held up relatively well and remained flat in this year's first quarter compared with a year earlier, according to comScore. Amazon, the largest Web-only retailer, increased its revenue 18% in the first quarter and 14% in the second quarter. Target hasn't been nearly as aggressive as some competitors at efforts to blend online and offline stores. Wal-Mart and other retailers offer a service that allows shoppers to order products online and pick up them up in the stores without incurring shipping fees. Amazon, which began as a book retailer, has slowly expanded the range of products it offers and now has become a first destination for many online shoppers. Target is the latest in a string of retailers -- including Borders Group Inc. -- to part ways with Amazon. The company and Toys "R" Us began a bitter divorce in 2004 over whether Amazon was unfairly competing with the toy retailer on its own site; earlier this year Amazon agreed to pay Toys "R" Us $51 million under a settlement agreement. "As e-commerce becomes a larger part of these retailers' business, they want to have more control over it," said Scot Wingo, president of Channel Advisor Corp., which helps retailers sell online.A couple years away, but still interesting. I wonder if they'll start offering in-store pickup / site-to-store shipping. Link to comment Share on other sites More sharing options...
erinplus3 Posted August 10, 2009 Share Posted August 10, 2009 Story: http://online.wsj.com/article/SB124966204168614785.html?mod=dist_smartbrief A couple years away, but still interesting. I wonder if they'll start offering in-store pickup / site-to-store shipping.I am excited to hear about this. I would be shopping on their site all the time if they had more deals on shipping or offered the option to pick your item up in the store free of charge. Link to comment Share on other sites More sharing options...
MoOn-BaBy Posted August 10, 2009 Share Posted August 10, 2009 I'm honestly suprised they lasted this long, their S&H charges have always been astronomical. I have never once ordered from them online because of that. Link to comment Share on other sites More sharing options...
debbieshops2003 Posted September 6, 2009 Share Posted September 6, 2009 (edited) I agree! Free site to store would be awesome. I don't understand why they kept using amazon anyway. I understood why Toys R Us did it (way back when) because they didn't have their own website. But once you have your own website going, why go through using an outside company? I order from target but only when they have free shipping. Without free shipping it kills their deals because their shipping rates are ridiculous. Now I just wonder why it will take 2 more years??? oh....got it.... I guess you have to read. Since 2001, Target has outsourced nearly all of its online operations to Amazon. The Seattle e-commerce giant provides software to run the existing Target.com Web site and also hosts the sale of Target goods directly through Amazon.com. In addition, Amazon runs the call center and most of the warehouse operations for Target as well as shipping the products to customers and handling customer service. oh...all my questions are answered.... Target won't renew its contract with Amazon when it expires in 2011 Edited September 6, 2009 by debbieshops2003 Link to comment Share on other sites More sharing options...
MonsterMutts Posted September 6, 2009 Share Posted September 6, 2009 I'm honestly suprised they lasted this long, their S&H charges have always been astronomical. I have never once ordered from them online because of that.Me either. I have shopped Amazon alot in the past! Free shipping is awesome :) Link to comment Share on other sites More sharing options...
fwolduser Posted September 7, 2009 Share Posted September 7, 2009 Great News! Link to comment Share on other sites More sharing options...
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