Toys R Us may be looking to change the terms of its 10-year merchandising deal with online retailer Amazon.com, according to published reports. The toy retailer is seeking to lower the fees for services it pays, as well as the percentage of revenue it gives to Amazon, reports said.
In August 2000, the two companies agreed to jointly launch and market a co-branded toy and game Web site. Amazon received a series of payments for maintaining the site and providing order fulfillment and customer service functions.
The original agreement called for Toys R Us to pay Amazon a straight-up fee for some services, “per unit” fees for other activities, and a percentage of all revenue generated. That percentage was set in the single digits.
Amazon and Toys R Us were not available for comment at deadline.
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