Amazon Broadens Toys R Us Partnership

Internet retailer Amazon.com's (AMZN Quote - Cramer on AMZN - Stock Picks) partnership with Toysrus.com widened Wednesday with the launch of a co-branded online baby store.

The site, babiesrus.com, is an affiliate of Toys R Us (TOY Quote - Cramer on TOY - Stock Picks) and the Web offshoot of the brick-and-mortar Babies R Us shops. The arrangement will work much the same as the co-branded toy site the two companies have operated since last year: Amazon receives a commission for running the site and taking the orders, while Toys R Us holds the inventory and takes care of marketing.

The Toys R Us deal was announced last August, and has been considered by analysts as one of the shrewdest business deals that Amazon has entered. It recently inked a deal to run bookstore chain Borders' (BGP Quote - Cramer on BGP - Stock Picks) site and is known to be in talks to reach a similar deal in the consumer electronics arena, a fast growing division for Amazon.

Amazon shares recently traded at $16.41, up 16 cents, while Toys R Us lost 73 cents to trade at $28.75.