Zappos.com is an electronic commerce company specializing in footwear and is currently based in Henderson, Nevada 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.It is a very good model for other similar online store to study. And there are two of them http://www.watchinstyle.com/ and http://onestoptown.com/prada-mens-shoes-33-p-1507.html has become its strongest competitors. And it is reported that they will beyond it in 2010. Learn from the history of its development you will see that there are many things are worth learning. for example
The name Zappos is derived from the Spanish word zapatos, meaning shoes.Zappos has expanded from shoes to handbags and purses, and has launched a second line of high-end shoes called Zappos Couture.Zappos also focuses on 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.
Since its founding in 1999, Zappos has grown to be the biggest online shoe store.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.
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.In 2005, the chairman reported that 60% of customers were repeat buyers. Their service promotes such benefits as free shipping both ways, a 365-day return policy and a call center that is always open. They ended their 110% price protection policy and free overnight shipping in January 2008. The company promises 4-day shipping free with all orders but often delivers next-day anyway, so as to pleasantly surprise customers.
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. The quit-now bonus began at $100. It was soon bumped to $500 and will likely go higher than $1,000.
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.According to the company, the core value is to "deliver 'wow' through service". A list on their website lists ten guiding principles embraced by the company.And they are very important experience that worth studying.