Wednesday, June 25, 2008

Amazon Gets Into the Fabric Biz.

"Amazon.com, Inc. today announced the acquisition of Fabric.com, a leading online fabric store that offers custom measured and cut fabrics, as well as patterns, sewing tools and accessories"

More from the press release:

This acquisition will enable Fabric.com to further expand its selection of fabrics and accessories while enabling Amazon.com to offer its customers a wider variety of products in the sewing, craft and hobby segment.

“Fabric.com has built an impressive business by providing great products and excellent service for sewing and crafting enthusiasts,” said Chris Nielsen, vice president of the Amazon.com Home & Garden store. “Over the years, we’ve seen a growing interest in this segment from our customers. Our acquisition of Fabric.com will allow us to offer a greater variety of fabrics and accessories to crafting customers.”


The site will be run as a standalone site, but will benefit from the expertise and scale that Amazon can bring to the business on the back end. Eventually, I would imagine, they might begin offering this type of product on Amazon.com.

It isn't too clear the benefit to 3P sellers in this category, but I can envision Amazon might open up Fabric.com to 3P sellers at some point in the future, though at this time there appear to be no plans.

According to Quancast.com and Alexa

Fabric.com's user base is primarily Women (73%) over 50 years old (40%) and traffic to the site is ranked #57,180 on Alexa -- truly a niche online retailer.
Perhaps Amazon has decided to expand more quickly into new categories through Acquisition rather than building them out on the main site, if this is the case I would look for more deals like this coming down the pike.

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