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Nov 9, 2010
Anand Srinivasan

Is Amazon The AOL Of The eCommerce World?

There is something very similar to the strategies adopted by Amazon – one of the world’s largest eCommerce companies and AOL – the new online media company. Both the companies own pretty strong brands that have weathered the numerous internet bubbles over the years to still be telling their tale in 2010. ┬áThere is something else that is very similar – the way the two companies go about their growth strategy.

Aol has been pretty vocal about their plan to become the go-to destination for everything media. The company owns some of the very popular portals in various segments – Engadget, TechCrunch, TMZ, PopEater, DailyFinance to name a few. And now, looking into the way Amazon has gone about its inorganic growth, it looks like the company wants to be in a similar position for eCommerce products.

Amazon’s recent acquisition of Diapers.com is just the latest in a series of ecommerce acquisitions in the past few years. The company has previously purchased other popular ecommerce companies from various segmens like BuyVIP, Fabric.com and Zappos. Of course, the portfolio is not as big as Aol in terms of volume. But in terms of value, this is pretty huge considering that this is eCommerce that we are talking about and not an online ads-based business.

It will be interesting to see how Amazon Inc. goes from here. And that refers not just to Amazon.com.

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