Amazon (NASDAQ: AMZN) is looking to further its retail reach by partnering with leading fashion brands to bring their wares to the online retailer. Brands such as J.Crew, Abercrombie & Fitch (NYSE: ANF), Ralph Lauren (NYSE: RL), Neiman Marcus and Lord & Taylor could be listed for sale on Amazon as early as this summer.
Details of the partnership would be arranged so that Amazon would not sell the physical items, but list the items and link back to the brand's own site according to sources who spoke with The Wall Street Journal. This would bring Amazon's database of 240 million consumers to each individual retailer. Amazon Prime members would also be able to use their free two-day shipping perks for these retail purchases.
In return, the retailers would pay Amazon a small fee plus a percentage of the eventual purchase. Merchants would be responsible for arranging and paying for the deliveries, however, the program could eventually offer retailers the option to pay to use Amazon's warehouses and logistics network to ship packages to customers.
This program is similar to the one Amazon currently runs with smaller retailers. The merchants pay Amazon fees for e-commerce traffic referrals and for any resulting transactions. These retailers also process the customers' credit cards. In exchange, Amazon benefits from gaining information about customer shopping habits to add to its already massive database.
There's no word yet on if or which retailers have signed on to the program, though sources revealed that Amazon is developing software that it could make available to brand partners by April.
-See this Wall Street Journal article
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