Amazon, the giant e-commerce platform, announced on March 29th that it will be shutting down its Quidsi unit. This included, among others, sites such as Diapers.com, Yoyo.com, or Soaps.com.
Quidsi And Its Acquisition By Amazon
The e-commerce giant bought Quidsi back in 2010. It paid half a billion dollars for the service, which also made it one of Amazon’s biggest acquisitions. The website presents itself as a way of making “Mom’s life easier”. It tries to do so as it owns and operates a family of sites that are linked together to this purpose.
Quidsi operates sites such as Diapers.com, which provides diapers, or Yoyo.com, which sells toys, or even Wag.com, specialized and presented as a pet supply shop.
However, the website never managed to turn in a profit. At least according to Amazon. The e-commerce giant stated that it never managed to make Quidsi turn in a profit, despite the years that have passed since its acquisition.
An Amazon spokesperson stated as follows:
“We have worked extremely hard for the past seven years to get Quidsi to be profitable, and unfortunately, we have not been able to do so.”
The statement also offered some details as to the company’s future course of action for the unit. As such, Amazon will continue offering the product previously provided through this unit. These goods will be integrated into the company’s own inventory.
Also, Quidsi’s team of developers will continue working within Amazon. They will be reportedly joining AmazonFresh. This is the grocery delivery system. However, this decision will not apply to all the unit’s employees. According to reports, some 263 other staff members working within Quiidsi will have to be laid off.
Quidsi Closing And Its Founder’s Battle With Amazon
Quidsi was initially founded by Marc Lore. He is perhaps best known for later founding Jet.com. this latter was then sold to Walmart. Now, Lore himself has joined the giant retail company. He is the head of Walmart’s e-commerce retail operations. As it is, Lore is also in direct competition with Amazon.
Also, just this e-commerce giant, Walmart has also been expanding its online retailer portfolio. It recently acquired ShoeBuy, ModCloth, Moosejaw, and Hayneedle. Amazon also made another acquisition of its own in the area. On March 28th, just a day before the Quidsi announcement, the e-commerce giant confirmed that it purchased Souq.com, a Middle Eastern shopping site. This deal was reportedly estimated to reach a value of about $650 million.
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