Amazon. com Inc. the world's largest online retailer, has announced that it would acquire Zappos. com Inc., online shoe and merchandise retailer for about $847 million in cash and stock, expanding Amazon. com's control in the e-commerce market.

The Seattle-based e-commerce giant deals in a wide array of products, ranging from books to electronics.

It is important to note here that many years ago, the company had made an attempt to contend against Zappos by launching a footwear Web site named Endless. com, though it could not get desired success in its attempt.

Nevertheless, Amazon. com said it would go on with its Endless. com.

The Las Vegas-based Zappos, which was established in 1999, got its stance by presenting shipping and return shipping free of cost.

Under the deal, Amazon. com will provide Zappos' shareholders and investors with shares of Amazon stock worth approximately $807 million in exchange for existing Zappos shares.

Earlier in the past, Amazon. com had acquired Audible Inc., an online audio-book Web site and Joyo. com Ltd. in $300 million and $75 million deal respectively.

Lazard Ltd. acted as Amazon's adviser on the deal, while Zappos was advised by Morgan Stanley.