CS1_Required.docx - Required Questions from Page 52-53 1...

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Required Questions from Page 52-53 1. During the 1999 holiday season Toys”R”Us had difficulties fulfilling their online orders on time because they were not prepared for the kind of volume. They corrected this by presenting their problem to Amazon in 2000 who already had the infrastructure to handle such volume. They were able to come to an agreement in which Toys”R”Us products would be available for viewing and purchase in the Amazon Marketplace as long as Amazon got a cut of each purchase. Amazon also handled the monetary transactions and shipping. Both parties benefitted from this because Toy”R”Us gained business from existing Amazon shoppers and they reduced their overhead for transaction processing and shipping infrastructure. Amazon gained a monetary percentage cut of each transaction. By 2004 Toys”R”Us sales exceeded $300 Million (Schneider, 2015). Other smaller toy sellers also benefitted from all of this because Toy”R”Us shoppers and Amazon shoppers were drawn to the site and saw their products (sort of free advertising).
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