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Target Taking Amazon-Supported Web Ops In House

8/11/2009 08:59:37 AM Eastern

Minneapolis - Target, which has outsourced its e-commerce operations to Amazon.com since 2001, said it will allow its contract with the e-tail pioneer to lapse in two years.

Instead, the discount chain will build and manage its own platform for Target.com, which it expects to launch before the 2011 holiday selling season.

The two companies will continue to work together during the next two years to "optimize performance of the existing platform and fulfillment services," Target said.

Amazon presently provides most of the infrastructure behind Target's e-commerce business, from Web site and warehouse operations to order fulfillment and customer services.

"Amazon has been an important strategic partner since we re-launched Target.com in 2001, and the strength of Amazon's technology and fulfillment services has been a contributing factor in Target.com's success," said Steve Eastman, president of Target.com and former CE chief for the chain. "However, to deliver a customized multichannel experience for Target's guests, we believe it is in Target's best interest going forward to assume full control over the design and management of Target's e-commerce technology platform, fulfillment and guest services operations."

In a statement, Sebastian Gunningham, Amazon's seller services senior VP, said, "We are grateful to have been able to work with Target for the last eight years, and we wish Target the very best as they go forward."

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