In what is already a famous quote, after just one day of selling toys on its site, Amazon's CEO Jeff Bezos stated that he believed Amazon was the number one toy seller on the Web. Amazon was the first mover and the first to scale in popularizing online commerce. Amazon took the lead in online music in a matter of weeks, and it conquered video even more quickly. That argument proved powerless. The Internet is about convenience.
Convenience means one-stop shopping.
One company to deal with. And the Internet is highly personalized, meaning that you don't need to visit a pure-play retailer to feel that you're receiving close attention to your specific needs. You don't need to visit the pure play. Amazon also has that and it offers much more convenience by allowing users to buy many other items beyond toys at the same time. It also has 20 times the shoppers and it added 2.3 million users last quarter compared to 102,000 at eToys.