Amazon bought Quidsi and its businesses, diapers.com and soap.com on November 8, 2010, for $545 million. Jeff Bezos bought the corporation with a view to diminishing competition in the industry. The purchase was the fruit of a hard battle with Marc Lore of Quidsi. However, according to a statement by Amazon, the largest retailer eCommerce is to shut down Quidsi as Bloomberg first reported. But why is Amazon terminating the eCommerce company? Perhaps, Amazon is shutting down Quidsi to be the larger everything store.
Reason behind closing Quidsi
Amazon said in its statement why it is closing Quidsi. The statement says, “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…”.
As a matter of fact, it might not be the sole reason for shutting down the company. Quidsi happens to be the arch enemy of Amazon.com. Additionally, previously it challenged the dominance of the largest online retailer. Consequently, for the purpose of establishing Amazon’s sole dominance and legacy, Jeff Bezos might get rid of Quidsi.
Allen Adamson, the founder of Brand Simple Consulting, New York, gave Bloomberg his thought about the closure. According to Adamson, “They sucked out any knowledge that team had and now they’ll put it behind the Amazon brand and steamroll those categories”.
From the Bloomberg report, we further learn that, Matt Sargent, senior vice president of retail at Frank N. Magid Associates. “Amazon is closing Quidsi in order to pull Quidsi users into the Amazon ecosystem,” Sargent said. “Amazon wants to be the single easy place to go for everything. The timing is not coincidental as Amazon wants to bring more attention to its specific brand entities in areas like grocery where it wants to expand.”
Quidsi employees & products
Quidsi has 1,100 employees in total. 263 employees at New Jersey will lose their job by June this year. Moreover, Amazon said in its statement, Quidsi has a great brand expertise and they will continue to offer on Amazon.com; the software development team will focus on building technology for AmazonFresh.
On the other hand, Amazon will stock the current products of Quidsi.