Amazon (AMZN) has announced plans to sell the technology behind its advertising business to other e-commerce companies and third parties.
Amazon, which is the largest e-commerce company in the world, has built a profitable ad business by charging merchants to promote products and listings on its platform.
Now, the company is launching a new product called “Amazon Retail Ad Service.”
The new product will enable outside retailers and e-commerce companies to use Amazon’s technology to sell ads on their own websites, including through online search results.
Amazon says multiple retailers are currently testing the technology and that it plans to hold a wider rollout in coming months.
The new advertising service puts Amazon in competition with Instacart (CART), which sells ad services to grocery store chains, as well as advertising technology firms such as Criteo (CRTO).
Amazon isn’t the only retailer that is launching an external advertising business.
Other large retailers such as Walmart (WMT) have also built their own ad businesses to sell to third parties.
Amazon’s stock has risen 45% in the last 12 months to trade at $222.13 U.S. per share.
