Amazon.com Breaks Ground in PC Marketplace

As part of its ongoing attempt to turn a profit, online bookseller Amazon.com has announced plans to venture into online computer sales, partnering with Ingram Micro Inc., the number one distributor of computer products.

Visitors to Amazon.com will see a new tab at the top of the page promoting the computer services. The online retailer will also offer refurbished computers as part of its new venture.

Amazon.com claims electronics, which is lumped with tools and kitchen products, is the fastest growing segment of its business, and that computers represent the third largest category of sales on the Internet.

"PCs are really the last business in the electronics space for us to be in. It's a really big opportunity for us. We’re already in so many of the categories related to PCs," said Carl Gish, vice president of Amazon's electronics group. "The sale of computers will help in our drive to make electronics, tools, and kitchen profitable."

Although the retail computer market has been in a slump in recent months, Amazon is optimistic about the venture because of the arrangement with Ingram. Ingram will maintain the inventory and do the shipping, so Amazon will be able to concentrate on sales with no inventory risk.


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