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Target Severs Ties with Amazon for Ecommerce; Chooses to Build Own Solution

Submitted by Tim Schulz on September 2, 2009 – Comments

target_amazonTarget, the Minnesota-based multichannel retailer historically leveraged Amazon’s infrastructure for all of its ecommerce operations. However, in 2011 Target is choosing to build their own solution rather than continue to pay for Amazon’s services.

The relationship between the two companies started in 2001, when Target was an online shop that existed within Amazon.com. The relationship progressed to a more stand-alone presence online powered by Amazon.com which included order fulfillment, processing, checkout and other typical ecommerce functionality.

Even though the partnership between the two companies was deemed a success by both parties, Target is severing ties with Amazon where Target will take on the design and maintenance of the site. Target is not the first retailer to sever ties with Amazon over the past couple years. Toys ‘R Us and Borders also left the Amazon ecommerce platform.

According to Target President Steve Eastman,

In order 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” .

Personally, I have purchased quite frequently from Amazon and Target online and found it quite nice to not have to use yet another username and password to login. But beyond that issue, Target may be taking on more than they can handle, such as what happens to purchasing history when the companies were working together and whether Target could draw that info from their own data warehouse.

Image: Courtesy of MediaPost

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