Zappos.com

Infobox_Company
company_name = Zappos.com
company_
company_type = Private
company_slogan = We are a service company that happens to sell shoes. And handbags. And more...
foundation = 1999
location = headquarters: Henderson, Nevada, USA
warehouse: Shepherdsville, Kentucky
key_people = Nick Swinmurn, founder
Tony Hsieh, CEO
Alfred Lin, CFO
Lisa Vagge, VP
industry = Retail
products = Shoes, handbags, eyewear, accessories, apparel
revenue = $840 million (2007) [http://www.zappos.com/about.zhtml about Zappos.com] ]
operating_income =
net_income = | num_employees = 1500+
homepage = [http://www.zappos.com/ www.zappos.com]

Zappos.com is an electronic commerce company specializing in footwear and is currently based in Henderson, Nevada, USA.Cite web|url=http://www.inc.com/magazine/20060901/hidi-hsieh.html|title=How I Did It: Tony Hsieh, CEO, Zappos.com|accessdate=2007-10-11|publisher=Inc. Magazine|year=2006|author=Max Chafkin|work=Inc.com] 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.Cite web|url=http://money.cnn.com/magazines/business2/business2_archive/2006/12/01/8394993/index.htm|title=Shoe In|accessdate=2007-10-11|publisher=CNN|year=2007|author=Sidra Durst|work=CNNMoney.com] 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.

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, vegan shoes, and Zappos exclusives.

Recently, Zappos has started to sell eyewear, apparel, and watches.

ales 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. [http://www.fastcompany.com/article/8-shoe-fits-0 Shoe Fits] , fastcompany.com, 2005] [http://www.bbbonline.org/update/issue.asp?ID=53 Spotlight on BBBOnLine Participant Zappos.Com] , BBBOnLine Update: June 2005, Vol.5 No. 6] In 2005, the chairman reported that 60% of customers were repeat buyers.

Zappos has a stated goal to offer "best service in the industry". [ [http://www.zappos.com/cs.zhtml Customer Service] , Zappos.com] 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. cite web|url=http://finaltag.com/2008/01/09/no-more-free-overnight-shipping-at-zappos/ |title=No more Free overnight shipping at Zappos! |accessdate=2008-06-09 |last=Chavda |first=Pranav |date=2008-01-09 |work=Final Tag ] The company promises 4-day shipping free with all orders but often delivers next-day anyway, so as to pleasantly surprise customers.

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.Fact|date=March 2008 [ [http://www.zappos.com/n/p/p/7427746.html Zappos.com Gear Zappos Culture Book - 2007 Edition - Free Shipping Both Ways & 365-Day Return Policy ] ]

According to the company, the core value is to "deliver 'wow' through service". [http://www.zappos.com/core-values.zhtml Zappos.com Core Values] "1. Deliver WOW Through Service] A list on their website lists ten guiding principles embraced by the company.

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 at full salary. After training, the new employees are offered $1,000 to leave the job immediately. This is to ensure people are there for the love of the job and not the money. Over 90% turn down the buyout.Cite web|url=http://discussionleader.hbsp.com/taylor/2008/05/wy_zappos_pays_new_employees_t.html|title=Why Zappos Pays New Employees to Quit—And You Should Too|publisher=Harvard Business Review|year=2008|author=Bill Taylor] The quit-now bonus began at $100. It was soon bumped to $500 and will likely go higher than $1,000.

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

References

External links

* [http://www.zappos.com/ Official website]