Amazon (AMZN) Close to Striking a Deal with 10 Major Retail Names: Report

Amazon.com (AMZN) is reportedly in discussions with several traditional retailers to feature their products on its website, according to a report from the Wall Street Journal.

Citing people familiar with the talks, the Journal said Amazon is speaking to about 10 notable vendors, including names such as Neiman Marcus, Abercrombie & Fitch, J. Crew and Ralph Lauren, to list their brands on the e-commerce giant’s website.

The Seattle-based on-line retailer wouldn’t sell the products directly, but instead direct shoppers to each individual retailer’s website. The arrangement would generate traffic for the retailers, while allowing Amazon to make money by charging a fee for sending customers to the retailers’ sites, and collect another payment for subsequent purchases.

Amazon would also gain leverage from the deal by obtaining a wider range of customer data.

If an agreement is reached, not only it would open the door for these retail names to begin selling their goods through Amazon’s online storefront for the first time ever, but it would also be the latest step in Amazon’s quest to beef up its apparel offerings, a move industry analysts have predicted the retail giant would eventually make but that retail companies have viewed with skepticism.

Shares of Amazon closed on Friday at $347.36.

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