Amazon announced today that they will shut down Diapers.com and the other websites managed by its Quidsi division. According to the American electronic and cloud computing company, the reason why decided to pursue this site shut down is because Quidsi division lacks its profitability. The acquisition of Amazon to Quidsi was announced back in November 2010 which involves $545 million. The agreement also includes the domains of the site like Soap.com and BeautyBar.com. as well as the flagship of the Diapers.com brand.
As reported by TechCrunch, Quidsi's headquarter is located in Jersey City and more than 260 employees from the main office will probably lose their job as a result of the shutdown. However, a New Jersey Department of Labor notice said that some of the workers will be able to still apply for other jobs offered by Amazon. Amazon confirmed this news of Quidsi’s shutdown in a released statement, saying that the site was yet unable to achieve profitability on the due date.
“We have worked extremely hard for the past seven years to get Quidsi to be profitable," stated Amazon. According to Recode, the spokesperson from Amazon said that Quidsi has a great brand expertise and they may also continue to offer a selection on Amazon.com. The software improvement team will focus on building new and original technology for AmazonFresh.
Amazon had proceeded to invest int the business of Quidsi over the past years following the acquisition and even launching innovative brands like the green grocer VineMarket.com. It also brings the individual sites to smartphones and any mobile devices, including iPad. In fact, there are several brands today that was still operated by the company such as Wag.com which is a site for pet items, YoYo.com for toys and more.
The main reason why Amazon snapped up Quidsi is to eliminate the competition on the market. However, despite the good agreement and acquisition, the sites still overlap a lot with Amazon's core business such as the Amazon Family, which rivals for the same customers as Diapers.com. As of now, Amazon did not say when will Diapers.com and other Quidsi sites will finally say goodbye. Although for sure, they will notify all the loyal customers until when they see the sites.
