Diapers.com just got bought out by AMZN using the same formula that zappos.com used: they built a fully automated fulfillment system using robots from kiva systems so they could deliver products fast at low cost. Diapers.com had an annual revenue of $180 million/year, so amazon paid less than 3X annual sales. Bezos is laughing…
Of course, the value of diapers.com, zappos.com, and amazon.com depends alot on having that 10,000 bpms margin kicker by not having to collect sales tax.
(Reuters) – Amazon.com (AMZN.O) said on Monday it plans to acquire the owner of online shopping sites Diapers.com and Soap.com for $500 million.
http://www.reuters.com/article/idUSTRE6A72NK20101108
Amazon to Acquire Diapers.com for $540 Million
http://news.yahoo.com/s/mashable/20101106/tc_mashable/amazon_to_acquire_diaperscom_for_540_million_report
Diapers.com Takes on Amazon in Huggies Delivery-Time Smackdown
http://www.bloomberg.com/news/2010-10-07/diapers-com-takes-on-amazon-in-huggies-
delivery-time-smackdown.html
AMZN buys Zappos for $807 million shares
http://forums.wallstreetexaminer.com/topic/829102-amzn-buys-zappos-for-807-million-
shares/
