In addition, it will wind down its operations over the next two months. The shutdown means that the US headquarters will lay off its staff as well. Rakuten clarified that the ‘cash back rewards’ referral business the company operates at Rakuten.com – formely Ebates – is not shutting down. Moreover, customers of the Rakuten US store will be able to place orders for the next two months, after which the site will shutter completely.
Rakuten bought Buy.com for USD 250 mln back in 2010 in an attempt to expand its retail business out of its stronghold of Japan. However, the evolving market, aggressive growth, and targeting of rivals at Amazon all led to declining business. The original CEO and COO left in 2012.
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