Amazon: Little Threat From Target, Says JP Morgan

August 7, 2009 at 2:37 pm PT

Target’s (TGT) decision today to build out its e-commerce infrastructure won’t likely hurt Amazon.com (AMZN), writes J.P. Morgan (JPM) analyst Imran Khan in a note to clients. In fact, it could help.

Target announced today it would construct its own order-fulfillment services for its online sales, which totaled $1.8 billion last year, according to Khan’s estimate, signalling the end of its use of Amazon’s back-office fulfillment services, for which Amazon receives a fee.

“To deliver a customized multi-channel experience for Target’s guests, we believe it is in Target’s best interest going forward to assume full control over the design and management of Target’s e-commerce technology platform, fulfillment and guest services operations,” said Target president Steve Eastman in a prepared statement.

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Tagged with: Amazon, Barrons, digital, e-commerce, frontpage, guest services, Imran Khan, Internet, JP Morgan, online sales, order-fulfillment, software, Target, Tech Trader Daily, Tiernan Ray

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