May 19, 2000 12:45 PM PDT
Amazon expands into furniture business
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.