17/08/2026
How Amazon Outplayed Toys “R” Us
Toys “R” Us had the brand, the stores, and decades of customer trust.
Amazon had something else: scale + strategy.
The two companies partnered so Toys “R” Us could sell toys online through Amazon. But the relationship eventually turned into a major strategic mistake.
Amazon wanted flexibility to sell toys from other sellers too. Toys “R” Us wanted exclusivity.
The partnership collapsed — and Amazon had already learned from the toy business, built its marketplace, and strengthened its position in e-commerce.
The bigger lesson? 👇
Never build your digital growth on someone else’s platform without understanding who owns the customer.
Your biggest partner today can become your biggest competitor tomorrow.
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