Amazon to buy Zappos.com

Amazon has made the decision to extend its online retailing empire into the realm of apparel by purchasing Zappos.com. This acquisition marks the largest move of its kind for Amazon in its 14-year history and the company plans to spend $847 million in cash and stocks to buy out its rival.

Although it has historically not had much success trying to sell apparel in the past, Amazon appears to be throwing its hat into the market once again. Online apparel shopping is the most popular form of internet retail, giving Amazon, which is mostly associated with books and electronics, a chance for a profitable venture.

According to analysts, Amazon’s attempts to compete with Zappos.com have been mostly futile. Amazon created Endless.com as a direct rival to Zappos.com a couple of years ago but Amazon’s creation never caught on. While online computer sales generate about $16 billion and consumer electronics sales generate $11 billion each year, online apparel, accessories, and footwear sales generate $23 billion in annual sales.

Image: Flickr