Borders ditch Amazon.com partnership

26 March 2007 11:39 GMT / By Stuart Miles

Borders, the US book store, has said that it plans to launch its own online store finishing its current relationship with Amazon.com

The move comes as the bookstore has announced loses of £77 million last year and the sale of its book stores in the UK and the rest of the world outside the US.

Amazon has handled Borders’ online sales and customer service since 2001, paying the company a percentage of its sales. It has been estimated that the loss of Borders could cost Amazon $80m (£40.8m) to $160m (£81.6m) in annual revenue.

"In order to drive significant business improvements, enable technology deployment and cross-channel experiences, Borders will ... develop its own Borders.com e-commerce Web site", the company said in a statement.

The website, which the company says will launch early next year will also allow Borders to extend successful in-store programs like Borders Rewards to the Web.

The company also plans to bring the web in store, with what it's calling “Digital Centers”. The new hubs of information will allow customers to learn about, interact with, and purchase new digital products — such as audio books, e-books, MP3 players — and services such as downloading and personal publishing that complement the Borders brand.

“We need to reinvent our business to exploit the rapid changes taking place in how consumers access information and entertainment”, Jones said. “Our ultimate goal is to make Borders a vital community gathering place where people come together to see, touch, interact, and learn – online and in-store.”

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