US: Amazon To Shut Down Quidsi Sites

Amazon has confirmed that it will shut down the various websites operated by its Quidsi division, attributing the move to the losses generated by the same.

Amazon acquired Quidsi in late 2010 for $545m, giving it control of sites such as Diapers.com, Soap.com, and BeautyBar.com.  The group continued to invest in the sites, and said it had “worked extremely hard for the past seven years to get Quidsi to be profitable, and unfortunately we have not been able to do so”.

Amazon added: “Quidsi has great brand expertise and they will continue to offer selection on Amazon.com; the software development team will focus on building technology for AmazonFresh.”

The group did not say when the sites will be shut down, but Bloomberg reports that more than 260 employees at Quidsi’s Jersey City HQ will be affected, although some of them will be able to apply for other Amazon jobs.

NAM Implications:
  • Success in business is being able to cut and run when necessary.
  • An opportunity for others to move into the Diapers.com, Soap.com, or BeautyBar.com gap?