Zappos: Difference between revisions
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==External links== |
==External links== |
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* [http://www.zappos.com/ Official website] |
* [http://www.zappos.com/ Official website] |
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* [http://meetinnovators.com/2008/09/11/tony-hsieh-from-zappos/ MeetInnovators 2008 Interview with Tony Hsieh from Zappos] |
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[[Category:Online retail companies of the United States]] |
[[Category:Online retail companies of the United States]] |
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Revision as of 09:07, 11 March 2009
| File:Zapposlogo.png | |
| Company type | Private |
|---|---|
| Industry | Retail |
| Founded | 1999 |
| Founder | Nick Swinmurn  |
| Headquarters | headquarters: Henderson, Nevada, USA warehouse: Shepherdsville, Kentucky |
Key people | Nick Swinmurn, founder Tony Hsieh, CEO Alfred Lin, CFO |
| Products | Shoes, handbags, eyewear, accessories, apparel |
| Revenue | $840 million (2007)[1] |
Number of employees | 1500+ |
| Parent | Amazon |
| Website | www.zappos.com |
Zappos.com is an electronic commerce company specializing in footwear and is currently based in Henderson, Nevada, USA.[2] The company warehouse is located in Shepherdsville, Kentucky, along with an outlet store. In addition, Zappos has two outlets stores in Las Vegas, Nevada and Henderson, Nevada.
Since its founding in 1999, Zappos has grown to be the biggest online shoe store.[3] Zappos did "almost nothing" in sales for 1999, but grossed over $800 million in merchandise sales in 2007, and is projecting over $1 billion in 2008.[1]
The name Zappos is derived from the Spanish word zapatos, meaning shoes.
Products
 |
Zappos has expanded from shoes to handbags and purses, and has launched a second line of high-end shoes called Zappos Couture.
Zappos also serves the niche shoe markets, including narrow and wide widths, hard-to-find sizes, American-made shoes, vegan shoes, and Zappos exclusives.
Recently, Zappos has started to sell eyewear, apparel, and watches, as well as electronic devices and media, such as DVDs.
Sales model
Zappos uses a loyalty business model and relationship marketing. The primary sources of the company's rapid growth have been repeat customers and numerous word of mouth recommendations.[4][5] In 2005, the chairman reported that 60% of customers were repeat buyers.[5]
Zappos has a stated goal to offer "best service in the industry."[6] Their service promotes such benefits as:
- Free shipping both ways
- A 365-day return policy
- A call center that is always open
They ended their 110% price protection policy and free overnight shipping in January 2008. [7] The company promises 4-day shipping free with all orders but often delivers next-day anyway, so as to pleasantly surprise customers.[8]
Company culture and core values
Zappos claims to place great emphasis on company culture and core values. The company publishes a "Culture Book" annually that is made up of contributions from employees describing what the company culture means to them.[citation needed][9]
According to the company, the core value is to "deliver 'wow' through service."[10] A list on their website lists ten guiding principles embraced by the company.[10]
All employees that are hired for their corporate office, regardless of position, are required to undergo a 4-week Customer Loyalty Training course, which includes at least 2 weeks of talking on the phone with customers in the call center[8] at full salary. After a week of training, the new employees are offered $1,000 to leave the company immediately, no strings attached.[8] This is to ensure people are there for the love of the job and not the money. Over 90% turn down the buyout.[8] The quit-now bonus began at $100. It was soon bumped to $500 and more recently jumped to $1,000.[8]
Competitors
- Endless.com, a shoe and handbag store owned and operated by Amazon.com
- Piperlime, an online store owned by Gap Inc.
- Shoebuy.com, an online shoe vendor based in Boston
- Gothamcityonline.com, an online shoe store based in New York City and specializing in NYC fashion
- Shoe-Store.net, an online shoe vendor based in Rochester, NY
- Onlineshoes.com, the first online shoe web retailer privately owned in Seattle, WA
- Midtownshoes.com, an online shoes store based in Chicago, IL featuring Dr. Martens footwear and shipping worldwide.
References
- ^ a b about Zappos.com
- ^ Max Chafkin (2006). "How I Did It: Tony Hsieh, CEO, Zappos.com". Inc.com. Inc. Magazine. Retrieved 2007-10-11.
- ^ Sidra Durst (2007). "Shoe In". CNNMoney.com. CNN. Retrieved 2007-10-11.
- ^ Shoe Fits, fastcompany.com, 2005
- ^ a b Spotlight on BBBOnLine Participant Zappos.Com, BBBOnLine Update: June 2005, Vol.5 No. 6
- ^ Customer Service, Zappos.com
- ^ Chavda, Pranav (2008-01-09). "No more Free overnight shipping at Zappos!". Final Tag. Retrieved 2008-06-09.
- ^ a b c d e Bill Taylor (2008). "Why Zappos Pays New Employees to Quit—And You Should Too". Harvard Business Review.
- ^ Zappos.com Gear Zappos Culture Book - 2007 Edition - Free Shipping Both Ways & 365-Day Return Policy
- ^ a b Zappos.com Core Values "1. Deliver WOW Through Service