Amazon was having trouble figuring out which toys to stock. However, some point out that inventory management is hardly a concern with books. Unlike toys, books can be returned to the manufacturer for credit. Still, the Toys 'R' Us liaison has been successful. Amazon has said that similar ties with other retailers could be possible.
Shareholders seem to like the idea.
Speculation in early March that Amazon had forged a partnership with Wal-Mart sent Amazon stock soaring. An alliance with Borders could have a similar effect. Monday, the company released preliminary highlights of Amazon's first-quarter results, showing strong sales and small losses.