Changing the Diapers.com: Amazon wipes up the competition

It was a story right of out of the Web 1.0 1990s: Marc Lore and Vinit Bharara, childhood buddies from New Jersey, launched a specialized e-tail site, raised $59 million from investors, and skyrocketed to success. 

Today, the Diapers.com foray into deja-vu-point-oh comes to a fitting end, with its sale to mega-mammoth online retailer Amazon.com.

Amazon is reportedly shelling out $540 million to buy Quidsi, parent company of both Diapers.com and Soap.com. Like many a dotcom entrepreneur past, Lore and Bharara will have their cake and eat it too, as reports say not only will they pocket millions in cash, but also are slated to sign multi-year deals to stay on in key managerial roles.

Last year, Amazon spent approximately $900 million to acquire Zappos.com, the shoe e-tailer that has built a loyal customer base by offering unparalleled customer service and easy return policies. Likewise, Diapers.com focused on differentiating themselves with the kind of, ahem, back-end service that, some feel, is lacking from the increasingly monolithic Amazon shopping experience. Continue reading...