Amazon to upgrade Marks & Spencer shopping site |
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Thu, 21 Apr 2005 01:00
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In a bid to reverse dropping sales and waning popularity UK retailer Marks & Spenser signed an outsourcing deal yesterday with Amazon Services to provide technological assistance to its online presence.
For Amazon Services, a subsidiary of US-based online retailer Amazon.com, it would be an opportunity to leverage their e-tailing expertise. They will provide, develop and host the applications behind M&S’ website, in-store and telephone shopping services. These three services would be consolidated and each shopping channel will be upgraded.
| According to a spokesman from M&S their current site attracts over 24 million visitors every year. Last Christmas, the site ‘creaked’ as there was a deluge of orders from Christmas shoppers eager to get huge discounts. The incident persuaded the management to tie up with Amazon for a more efficient website.
One of the chief benefits of the deal with Amazon will be an integrated ordering system. However, M&S will retain the responsibility for branding and content as well as its warehousing, distribution and customer service operations. M&S also hopes to produce better graphics and search tools by which customers will find it easier to track orders.
The UK retailer is also likely to put its clothing and home ware merchandise onto Amazon’s own shopping site by next year.
The deal, anticipated as far back as in September 2004 took some time in reaching the negotiating table. For US based e-tailing pioneer Amazon, the deal was quite welcome as they had already planned to expand into Europe this year following increasing competition in the US. They already run e-commerce sites in the US for retailers Target, the NBA and Toys 'R' Us.
Amazon’s visual presence on the M&S site will be limited to the words “Powered by Amazon.com” and their logo at the foot of the pages on the site. However, it will be about 18 months before that happens.
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