May 19, 2000 12:45 PM PDT

Amazon expands into furniture business

Amazon.com opened a new home furnishings store today in conjunction with Living.com.

The launch marks the second time Amazon has expanded its product selection with the help of one of its partners. Last month, the Seattle-based company opened a new health and beauty store operated by Drugstore.com.

The furnishings store offers sofas, tables, rugs and other items. Although it is featured as a "tab" on Amazon's site, customers will use a separate shopping cart at the new "Home Living Store," and Living.com will ship all orders placed in the store.

Stores such as the furnishings and drugstore sites are seen as a way for Amazon to earn low-cost revenue. Unlike with its books, music or toy stores, the company doesn't have to carry inventory or worry about shipping costs. Living.com and Drugstore.com are paying Amazon $145 million and $105 million, respectively, to essentially advertise prominently on Amazon.

Amazon also opened a kitchen store and a lawn and patio store this year. The company owns and operates those stores itself, however.

 

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