Based on a recent acquisition, e-commerce mogul Amazon, parent company of Zappos, is taking steps into the into the high-end retail space by acquiring BuyVIP, a members-only retail club serving Europe. According to the Wall Street Journal, the company reportedly paid $96.5 million for the business. According to Hudson Square Research, Amazon is the largest e-tailer in the country with an 8% market share.
BuyVIP has more than 7.5 million members in Spain, Italy, Germany, Austria, Poland, the Netherlands, and Portugal, sells high-end clothing at discounts of up to 70%, according to its website.
The company, which has headquarters in Germany and Spain, has more than 500 strategic partnerships with well-known international fashion and lifestyle brands, BuyVIP said. In 2009, BuyVIP had sales of €70 million or approximately $96 million, according to published reports. This year, the company is projecting revenue of more than €130 million, or about $179 million.
In other Amazon news, Dick's Sporting Goods, The Sports Authority and several other retailers are partnering with ShopRunner, owned by GSI Commerce, to offer a year of two-day deliveries for $79, the same price charged through Amazon's Prime subscription program. The new service also offers free returns, a perk not available to members of Prime.
