Amazon Promotional Deal Nets $145M

E-tail giant has announced its third major promotional deal in roughly a week, bringing its tally to a tidy $332.5 million (US$).

The latest deal, with home products and services retailer, is worth $145 million. will make payments over five years for the right to become the exclusive supplier of furniture, bedding, home textiles, decorative accessories, tabletop, window treatments, and other related home categories in a new Home Living Store.

Cashing In

Amazon, which has been plagued by questions about its short-term profitability, has clearly set out to infuse itself with cash by bringing promising e-commerce companies into its orbit.

The company will get $105 million over the next three years from online pharmacy and $82.5 million over the next five years from online auto seller

Amazon agreed to buy five percent of, with warrants to increase that stake to as much as 30 percent. The company plans to launch a network of car dealerships online this spring.

The deal includes Amazon’s purchase of additional shares in the company for $30 million, to bring its total stake to 28 percent. will get its own “tab” at the top of the home page to link consumers to shopping services hosted by Amazon.

Amazon says it has been buying up stakes in Web sites that are focused on “improving the lives of customers by making shopping easier and more convenient.” The company’s holdings include stakes in,, sporting goods retailer, luxury watch and jewelry store, and gift registry

Living Large

The nine month-old will get exposure to Amazon’s 16 million regular customers, enabling Internet shoppers to switch seamlessly between the two sites, the companies said. already has shopping pages or links on America Online, Lycos and Yahoo!, which have become some of Amazon’s biggest competitors since the entire portal category expanded into shopping and content services.

Amazon agreed to buy an 18 percent stake in, with warrants for another nine percent. Amazon will also have a seat on the board of directors.

In addition to Amazon’s unspecified investment, has raised $41.5 million from venture capitalists, including funds from Benchmark Capital, Austin Ventures and Starbucks Corporation.

Leave a Comment

Please sign in to post or reply to a comment. New users create a free account.

E-Commerce Times Channels