NEW YORK (CNNMoney.com) -- Online retailer Amazon.com announced Wednesday the opening of its new toy and baby stores, after severing its contract with Toysrus.com.

Amazon and Toys 'R' Us inked a multimillion-dollar deal in 2000 for a 10-year partnership in which the toy merchant's online sales would be done exclusively through Amazon.com.

But in 2004, Toys 'R' Us sued Amazon, alleging that Amazon violated exclusivity terms by allowing third parties to sell competing products through the Web site. Amazon subsequently countersued Toys 'R' Us, seeking to sever the partnership.

A court decision in March 2006 allowed Toys 'R' Us to dissolve the partnership with Amazon and set up its own Web site.

"We are incredibly proud of our new toy and baby stores," Jeff Bezos, founder and CEO of Amazon.com, said in a statement.

"We've never been able to offer our customers this much selection, plus the added benefit of Amazon Prime and Free Super Saver Shipping - we think this is a winning combination that will benefit our customers for years to come."

Shares of Amazon.com (Charts) fell in premarket trade.

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Related: Amazon.com makes move into groceries.