Toys R Us to move e-commerce in-house

Toys R Us announced it will bring operation of its e-commerce platform in-house by the end of summer 2016. The retailer has outsourced its e-commerce to GSI since 2006.

The new platform will control all three of its retail sites: ToysRUs.com, BabiesRUS.com, and FAO.com, Internet Retailer reported.

The move is part of the company's recently announced TRU Transformation, a five-year strategic goal of strengthening the foundation of the company to increase revenue and profits. The retailer hopes to improve the customer experience online, which it believes is best done with the control coming from within. Although struggling a bit in 2013, the company has gone back to the basics by focusing on improving customer loyalty and the in-store experience.

"We expect this will provide us with the flexibility needed to grow and expand in an omnichannel world, while allowing us to rapidly respond to changing customer dynamics and an ever competitive marketplace," Fred Argir, senior VP and chief digital officer at Toys R Us, told Internet Retailer.

The retailer will use ATG e-commerce software from Oracle as the basis for its new online sales platform. Toys R Us will continue using the eBay Enterprise technology that allows the retailer to ship online orders from its store and for customers to buy online and pick up in-store.

Toys R Us joins the growing trend of retailers bringing e-commerce operations in-house, including Target and Dick's Sporting Goods, which is beginning to migrate off of the GSI Commerce technology as well.

GSI is owned by eBay (NASDAQ:EBAY), which acquired the company in 2011 for $2.4 billion, and is a part of eBay Enterprise. EBay, which is spinning off its PayPal unit, is also planning to sell off the eBay Enterprise unit that provides e-commerce platforms for many top grossing internet retailers such as L Brands and Ascena Retail Group.

For more:
-See this Internet Retailer article

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