Soap.com is going to be their online go-to site for non perishable goods, like household products, personal care items and medicines and vitamins.
Wag.com is their online pet supplies store and features everything from pet foods and treats, to fish tanks and cat trees.
Both sites fall under the Quidsi brand, which is responsible for the biggest online retailer of nappies, and Amazon paid $550 million in late 2010 for the brand. With Amazon already a giant behemoth in the market, it makes perfect sense for them to look to acquire related sites in more specialised markets. They reduce their risk with Amazon, which while immensely popular does not sell what you would define as staple products, and the Quidsi sites are in much more recession resilient, and consistent markets than Amazon.
With all the retails experience that Amazon has under it’s belt in the 15 years it’s been running, they will no doubt be looking to transfer their knowledge and practices to their new acquisitions and attain better deals, and prices from the manufacturers with their size and clout.
It’s sometimes hard to believe that it took amazon almost 10 years to finally turn a profit, and they have had their ups and downs in the past, being close to blowing it on more than a few occasions. Times have been better of late though, and they have been focusing intently on their re-investment strategy in new markets and technology pushes like the Kindle.
If Amazon survived for almost 10 years without a profit, then it puts them in a great situation going forward, their happy to invest and build and their acquisitions and technology pushes reflect that. With their knowledge of cloud based online web delivery too, Amazon are being careful to stick with what they know but are definitely spreading their wings, however slowly it may be, but with their rocky past history you can’t really blame them.