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Why retailers sever ties with Amazon

After years of relying on Amazon's technical know-how and e-commerce network, retailers have begun pulling the plug on their Amazon partnerships over the last two years, reports Investors.com.

Citing the end of Amazon's relationships with Borders and Circuit City in the US and HMV/Waterstone's in the UK, the article states that "the digital divorces reflect harsher times in e-tailing. With the economy skidding and consumers spending less, some of Amazon's partners are having second thoughts about teaming with an e-commerce giant that now poses the biggest threat to their existence."

Other reasons mooted for the recent break-ups are Amazon Marketplace and "Amazon's reputation as a less-than-generous partner"

Previous comments from Borders c.e.o. George Jones--that the bookseller got only a percentage of online sales it directed to Amazon--are quoted in the article, which also concedes that "another factor working against the partnerships is that Borders and other retailers are better poised to launch successful websites than they were a decade ago".

Investors.com

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