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Amazon said to seek allies
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March 26, 2001: 9:39 a.m. ET
Online retailer looks for way to delegate responsibilities for product lines
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NEW YORK (CNNfn) - Looking to shore up its retailing capacity, Amazon.com is speaking to a variety of possible partners, according to a report published Monday.
In a move that may see the online giant handing off responsibilities for some of its popular retailing categories, sources close to the talks told the Wall Street Journal that partners could include traditional bricks-and-mortar merchants such as Best Buy.
While none of the companies involved in the possible deals have commented publicly on the talks, many on Wall Street believe this would be a move that allows Amazon (AMZN: Research, Estimates) to concentrate on those areas it is best at, specifically, sales of books, videos and music, the Journal said.
Amazon already has a deal with Toys "R" Us which allows the toy retailer to fulfill toy purchases made on the Web site.
The online retailer may hope that other such deals will help turn the once-high flying Wall Street darling, as speculation about Amazon's ability to continue operating at its current rate of expansion have been circling for months. The company admits to wanting to partner with other retailers according to the Journal report.
 As the Internet bubble sent stocks crashing during the last six months, Amazon has been particularly hit. Trading over $100 a little more than a year ago, the stock has seen a steady fall, closing Friday at just $10.19.
Overtures to retailers has been mixed. Talks with discount leader Wal-Mart Stores did not get very far, the Journal said. Traditional retailers, once intimidated by the incredibly fast growth of the online stores, have again gained the upper hand in such negotiations as the Internet pure plays realize the need for a more balanced approach.
Analysts on Wall Street are so far applauding the moves made by Amazon, but are taking a wait and see approach to see how successful this latest move will be, the Journal said. 
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