Amazon to Shutter Quidsi Unit

Amazon.com announced Wednesday that it's shuttering Quidsi, the company behind Diapers.com, because it was unprofitable. Amazon acquired Quidsi in late 2010 after it skyrocketed to popularity by shipping diapers and other household products mostly free of shipping costs. The acquisition cost Amazon $500 million. Quidsi was co-founded by Marc Lore, who stayed with Amazon three years after the acquisition until he founded Amazon rival, Jet.com.

Total Retail's Take: While Quidsi was one of the first major acquisitions for Amazon, and one of the most notable because of the involvement of Lore, it wasn't one of the most successful. Amazon is moving towards an on-demand economy with household items, its strategy shifting towards brick-and-mortar and more partnerships for niche items, leaving Quidsi likely out of the mix. Hastening that decision was the fact that Quidsi had been losing money for many months.