On Wednesday, Amazon.com Inc. said it is shutting down Diapers.com, Soap.com and many other sites it invested for more than $545 million in 2011 because it was not profitable. It purchased these sites to eliminate a persistent competitor and gain e-commerce customers. The e-commerce analysts said Amazon probably intended to eliminate the sites as stand-alone businesses at some point, and the company’s renewed grocery push is an ideal time to consolidate brands.
Allen Adamson, founder of Brand Simple Consulting in New York said, “They sucked out any knowledge that team had and now they’ll put it behind the Amazon brand and steamroll those categories.” An Amazon spokeswoman said, “We have made a hard attempt working for the past seven years to get Quidsi to be profitable, and unfortunately we have not been able to do so.” She further added that Quidsi’s goods will be sold on Amazon.com and its software development team will be moved to the company’s grocery division, AmazonFresh.
According to an information sent to the New Jersey Department of Labor, more than 260 employees at Quidsi’s Jersey City, New Jersey, headquarters and customer-service operation will suffer and lose their jobs. According to the notice, some of the employees will be allowed to apply for other Amazon jobs. Quidsi also has its warehouses in other states of US like Kansas and Nevada.
Quidsi specializes in selling goods like baby products and household products. Additionally, Amazon was trying to propose infinite inventory. The moment since when Amazon, the world’s biggest e-commerce retailer has become the go-to source for online shopping, the draw of sites like Diapers.com has faded away.
Sargent says, “Amazon is shutting down Quidsi in order to drag Quidsi users into the Amazon ecosystem.” “Amazon wants to be the single easy place to go for everything. The timing is not circumstantial as Amazon wants to concentrate more on its specific brand entities in areas like grocery where it wants to spread out.”