Folks that think there can’t be any money in bringing Internet commerce to everyday, commonplace items need to think again: online retailing giant Amazon.com has just inked a deal with Quidsi to acquire sites like diapers.com and soap.com. Diapers.com is exactly what it sounds like—nappies and nappy accessories—while soap.com offers a range of everyday essential items from health and beauty products to detergents and (you guessed it) soap. Quidsi also operates the prestige beauty goods site beautybar.com.
“Amazon is a pioneer,” said Quidsi founder and COO Vinit Bharara, in a statement. “Amazon is built on a culture of innovation and long-term vision. Quidsi is driven by these same core values, and we look forward to joining forces.”
Amazon plans for Quidsi to continue to operate independently under its existing leadership team. Everyday operations of the company’s sites and services will continue without interruption; the primary difference is that the profits will now go straight into Amazon’s coffers. The pattern is similar to Amazon’s 2009 aquisition of online shoe retailer Zappos, which totaled over $850 million. Zappos continues to manage its own operations and conduct business under its own brand. Also following the pattern of the Zappos acquisition by eliminating competition: Amazon has tried to compete with diapers.com in the baby marketcom, and has largely failed to gain traction.
The Quidsi deal has Amazon handing over about $500 million in cash, along with assuming about $45 million in debt and other obligations. The companies expect the deal to close next month.