The American based multinational E-commerce company, Amazon, has headed towards the luxury segment by acquisition of BuyVIP for as much as 70 milion Euros i.e. $96.5 Million. The bought over company is one of the largest online shopping community in Europe which retails products from Fashion and Lifestyle industry at discounted prices. It is seated in Madrid and claims to have 6 million members in seven European countries.
This deal seems to be in line with Amazon’s other business acquisitions which are aimed at expanding its Ecommerce product portfolio. Zappos.com, an online shoe and clothing shop based in Nevada was bought over by them last year. The internet folks are speculating that Amazon might have acquired to BuyVIP to make its feet firmer in the European market in some possible combination with Zappos.com.
Amie Street, an online music store, was also acquired last year by Ecommerce giant owing to the bought-over company’s innovative fee schedule and a decent-sized userbase to help Amazon grow its mp3 service. All of the above deals are with an intention to bring the best, brightest talent and models which will boost their online business.