Wednesday, July 22, 2009

Amazon to acquire for $847 Million

Wow, that's cool!. Amazon announced today to acquire apparel and footwear retailer for $847 Millon. Zappos, the popular online retailer ranked 3rd last week among online retailers within the Apparel and Accessories category behind Victoria’s Secret and Old Navy. Both Amazon and are well-known for the breadth of product offerings, so it is not surprising that they share much of their audiences. The deal would be the most expensive purchase in Amazon's recent history, according to FactSet Research. Amazon's priciest acquisition this decade was Audible Inc. - which provided audio editions of books and newspapers - for $ 280.7 million cash in early 2008, according to FactSet.

Zappos is one of company that utilize huge effort to social media that they make their customers feel warms, I think Amazon may adapt and utilize from those channels as well.

The target group of Amazon & Zappos is nearly same target that you can see figure above.

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