Under a 10-year strategic alliance that marries the top name in e-commerce with one of traditional retailing's strongest brand names, Amazon will provide key logistical support for toysrus.com, the online toy retailer that is majority-owned by Toys `R Us.

The companies said the co-branded toy and video games store was expected to be launched in the fall, and the baby products store would follow in the first half of next year.

Financial terms of the alliance were not disclosed, but the companies said Seattle-based Amazon would get periodic fixed payments, per-unit payments, a single-digit percentage of revenue, and warrants entitling it to buy 5 per cent of toysrus.com.