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Toys R Us Shifts To Fulfillment By Amazon

Toys R Us went through bankruptcy in 2017, and closed its stores in 2018, but online orders have continued.

Toys R Us has recently replaced Target with Amazon as its e-commerce partner.  Customers shopping at the ToysRUs.com site will be redirected to Amazon for order fulfillment.

Video Spotlight: 

This post is based on the Chicago Business Journal article, Target is out, Amazon in as Toys R Us fulfillment partner, by Anne Stych, August 21, 2020, and the YouTube video in the Spotlight. Image source: BK666/Shutterstock

Discussion Questions:

1.   Is Toys R Us’ e-commerce partnership with Amazon a sound operations strategy?  Explain.

Guidance: Yes.  By partnering with Amazon, Toys R Us can build on Amazon’s e-commerce prowess to handle customer-business transactions online.  This way Toys R Us can focus on providing customers with a large toy assortment to choose from and leave Amazon to handle the order fulfillment.

2. Comment on Toys R Us’ digital strategy from an operations management perspective.

Guidance: Toys R Us attempted to rebuild its brand by opening two physical stores in Texas and New Jersey and partnering with Target to give customers an experiential opportunity to discover, play and enjoy toys.  However, customers are switching to shopping online amid the COVID-19 pandemic. It makes sense for Toys R Us to team up with Amazon to go fully online instead.

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