Here we will see about the Does Amazon Own Zappos?
Zappos is an online shoe retailer which was founded in July 1990 and later expanded in clothing, accessories, handbags and eyewear retail. From its establishments it grew to be amongst the popular and powerful brands. Until present day it still holds its place as one of the shoe retailers with a variety of shoe styles and brands. Ranging from sports, casual and semi casual.
Amazon made a purchase of this online store on a $1.2 billion deal in 2009. From then amazon has been the sole owner of this online shoe retail. Amazon did not merge the store, but they operated the shoe store as an independent store where customers can have a spectrum of styles to choose from. Zappos is one of many brands owned by Amazon. Amazon bought Zappos in looking into growing and investing in its portfolio making it one of the best companies that could bring positive impact to the consumers. Because it was showing exponential growth over the years before being purchased as it was in “The top 500 list” which it ranked 34th highest retailer by internet retailer magazines in 2005 that is with accordance with the CEO of Zappos.com Tony Hsieh and on top of that it reached its goal of $600 million revenue a year (sgbonline.com).
Zappos revenue before 2009
| Years | Annual Revenue |
| 1999-2000 | $0 – $1.6 million |
| 2000-2001 | $1.6 million – $8.6 million |
| 2001-2002 | $8.6 million – $32 million |
| 2002-2003 | $32 million – $70 million |
| 2003-2004 | $ 70 million – $184 million |
| 2004-2005 | $ 184 million – $ 370 million |
| 2005-2006 | $ 370 million -$ 600 million |
| 2006-2007 | $ 600 million |
Indeed, Zappos was doing really well but from its affiliation with amazon According to 2009 they aimed to exceed the $1 Billion mark, which they did in 2015 as they reported their first $ 2 Billion mark revenue. From then it keeps on rising showing unimaginable growth and promises to do better as we are approaching the fourth industrial revolution.
Culture of Zappos
Zappos is well known for its customer service and employee focused company culture. After it was sold to amazon, they still kept Tony Hsieh as their CEO who was the writer of a bestselling autobiography called “Delivering Happiness” which entails more about his way of living which was delivering happiness to others said newly elected CEO of Zappos.com Kedar Deshpande in honor of the late CEO who died November 2020. That philosophy kept on being a part of Zappos culture even today.
According to CNN, Hsieh died at the age of 46 from injuries obtained from a house burn in Connecticut at his home. “Mr Hsieh was a man of great stature with a heart of gold and generosity, and he made a positive impression on every individual he can reach. That was what he made the culture of Zappos to be and that still exists in his honor, which they promise to operate by it” said Kedar Deshpande.
Amazon and Zappos as one company
Zappos is believed to be a customer focused company, said Jeff Bezos, Founder and CEO of Amazon.com. “We see great opportunities for both companies to learn from each other and create even better experiences for our customers.” Following the covenant Amazon will take sole ownership on all Zappos shares. but the Zappos former management will remain in place continuing with their philosophy as usual, carrying out their usual work ethics, customer experience and unique culture of service independently with headquarters in Las Vegas, NV.
At the conference Tony Hsieh former, CEO of Zappos.Com said “We are joining forces with Amazon because there is a huge opportunity to utilize each other’s strengths and move even faster towards our vision of delivering happiness to customers, employees and vendors. We will continue to build the Zappos brand and culture in our own unique way, and we believe Amazon is the best partner to help us do this over the long term.”
About Amazon.com
Amazon is one of the biggest online stores in the 21st century. It has a huge market capitalization, which was founded by Jeff Bezos on July 5, 1994, but by then it was only a bookstore, but Jeff had a dream to grow the company which it truly did because it had an explosive growth and e-commerce domination.
Amazon.com pursues its goal of being one of the best and to be world’s most customer-centric company, where consumers can obtain anything they need to buy online, and endeavors to offer its customers lowest discount ever. Amazon.com and online retailers who several of unique new, refurbished and second-hand items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel; Shoes & Accessories; Health & Beauty products; Sports & Outdoor tools.
Why did Amazon Buy Zappos?
To Zappos employees that a customer bought something from them it really means a lot or even on amazon store. A purchase from amazon would likely be more efficient. Even if that is the case Zappos still has an important role to play as it is the center of attraction for a high value customer who spends more on their clothing category.
1. Variety of options: Zappos offers a wide range of options to choose from because it offers more premium brands that are not available on Amazon. Adidas and other brands refuse to sell on Amazon for some time now.
2. Return policies: Zappos far more offers a friendly return policy, whereby you can order and return in any way you feel like until you find your perfect match. Other than amazon with limited trials and returns.
3. Selling Prices: Some products at Amazon usually is the cheapest but take into consideration that they offer different products or services.
Does Zappos Provide Quality Shoes?
All shoe brands sold by Zappos are 100% genuine. It is against the policy of selling of selling first copy products as it is illegal in the USA. Furthermore, it would harm its reputation as an international fashion e-commerce website.
Providing quality product and services has been the culture of Zappos for sometimes now as a giant online retailer. Everything they do puts the customer first as they provide a wide range of selection for their customers as their return policy is like no other in the industry, this offers you an option to get satisfaction with whatever choice you made. Reviews on Instagram by customers: “I’ve personally ordered shoes from Zappos, and I was not happy with my choice, I had an option to return them and get my perfect match as their return policy is unbeatable”.
Conclusion
The merge of these online giants’ stores is an advantage to both its customers, as Amazon offers a range of services but there are certain services, they cannot cover which Zappos can cover with their wide range to select from. This makes it easy from both companies to offer the best of services as they work hand to hand which each other.
