Briefs: Amazon to sell health goods directly

October 27, 2005

Amazon.com said Thursday it has concluded its fulfillment services agreement with drugstore.com.

The online retailer has been selling healthcare goods on the Internet since December 2003, and it has a 14-percent shareholding in drugstore.com as well as a seat on the company's board of directors.

However, sales of healthcare products from drugstore.com through Amazon have accounted for less than 1 percent of overall sales. By concluding its fulfillment services agreement, Amazon will as of Nov. 9 largely sell its health products directly on the Web.

"We've now built direct relationships with most major brands, including Procter & Gamble, Johnson & Johnson, Unilever, Bayer, Glaxo, and dozens of others," Doug Herrington, Amazon's vice president for consumables, said in a news release. "Going direct allows us to source more products at better prices, enabling us to deliver more value to customers," he added.

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