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