RE: Soap.com

Soap.com is the long rumored expansion of the diapers.com into the hpc product space. From their announcements, they will be launching a 25k SKU assortment of hpc product on July ist. The assortment can be accessed via a new front door called "soap.com", but from screen shots they released, it will be a "tab" on diapers.com that can be accessed through diapers.com as well. It looks like soap.com and diapers.com will share identity, cart, ordering thresholds, etc.. They have promised hpc pricing that is competitive with offline prices. They will maintain the same "free 1-2 day shipping on orders over $49" that they currently have on diapers.com. Given diapers.com's strength and competencies, soap.com is our most significant short term competitor in the hpc space. What are we doing? 1. We have already initiated a more aggressive "plan to win" against diapers.com in the diaper/baby space, which includes market leading pricing on diapers ("double your SNS discount to 30% off diapers and wipes"), a free PRIME offering for new and a structured and marketed "Amazon Mom" program". Per Greg's suggestion on Friday, we are scheduling some time to review this with you. To the extent this plan undercuts the core diapers business for diapers.com, it will slow the [...] 2. Ensure price and selection parity with the soap.com assortment at launch. This is table-stakes, but we are gearing up CMT and our vendor managers to ensure we have pricing and selection parity day 1 of their launch. [...]