Later this fall, the companies will open up a Target store at Amazon.com, selling apparel, home furnishings, electronics and jewelry. Starting next summer, Target will use Amazon's order fulfillment, e-commerce and customer care technology for its online properties, which include Target.com, MarshallFields.com, Mervyns.com and GiftCatalog.com.
Specific financial terms of the five-year deal were not spelled out, but Amazon will get fees based on unit sales as well as annual fixed fees, the companies said.
This is the third major offline partner Amazon has signed up so far. The company recently set up a deal with Circuit City to offer the electronics retailers items for sale through Amazon's site.
It has also teamed up with Toys "R" Us to run online toy and baby supply stores.