Borders will be ending their strategic partnership with amazon.com after 6 years of partnership. Borders is interested in improving their financial position and climbing out of the red and into the black. Beginning in January 2008, Borders will open their own e-Commerce site where they will keep 100% of sales earned. The deal amazon.com and Borders entered into called for Borders to only receive payment for referrals and not for any of their products sold. The reason for this was because amazon.com was responsible for fulfillment, a job Borders will now have to undertake.

Preparing for the split Borders has hired new e-Commerce executives, as well as a new e-Commerce staff to lead the website to success. Understanding the success of the new site depends on how well they get their name out in the very competitive field they are in. Border’s has begun preparing for Web 2.0 and will roll out podcasts of music performances and author’s readings to build brand awareness.

Borders’ effort should help their bottom line which reported staggering losses in 2006. Borders and their sister company Waldenbooks will be on the same platform and are looking for a strong showing when their new site debuts in early 2008.