Monday, December 6, 2010

Who knew that diapers were such a messy, and cutthroat, business?


Not everything is all baby fresh in diaperland as the word is out that Diapers.com is under attack from big mean Amazon.

Yes folks it is true – big bully Amazon has launched a full on price war with Diaper.com, owned by Quidsi, who recently posted a $100 Million plus revenue and valued at $300 Million. The impeding price war between the David and Goliath of all things baby could have Quidsi reconsidering the folly of turning down past acquisition overtures from Amazon.

A source familiar with the matter tells us that Amazon has approached the company about an acquisition several times in the past. But Quidsi has refused to sell.

And now Amazon appears to be trying to kill Diapers.com by selling its core product–diapers–at a huge discount.

One source in the industry hears that this price war has clobbered Diapers.com’s growth and forced the company into sales talks (perhaps with Amazon). Diapers.com declined to comment.

A quick price check illustrates that Amazon has been aggressively discounting diapers and related products. It also recently introduced Amazon Mom, which offers further discounts, cash back, and free shipping.

Diapers.com has had to counter with price cuts and a cash-back program of its own, but Amazon is still undercutting the smaller company

via Silicon Alley Insider

Lesson learned? When Amazon comes knocking you might be wise to sell.

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