Monday, April 21, 2008

The New Zappos: going into Amazon territory | from CNET

The company's two warehouses in Kentucky hold around 4 million items, but at just under a million square feet, Zappos has plenty of room to grow. And that's just what they're planning on; by the end of 2008 the company hopes to be selling footwear, apparel, sunglasses, watches, bags, bedding/linens, cosmetics, luggage, and electronics, according to the CEO's blog.

Zappos prides itself on attention to customer service--an 800 number is plastered on every page, along with notes promoting the company's 24/7 customer service line and 365-day return policy. So far, this approach has been working: Zappos, which launched in 1999, had gross sales of $840 million in 2007, up from $1.6 million in 2000. As of the beginning of April, the company had a customer base of 7.7 million people.

The privately held company reported an operating profit in 2007, and "we exceeded (our goal) a little bit," Hsieh said. In fact, things are going so well that the company recently told its 1,600 employees they would each receive a bonus equal to 10 percent of their 2007 salary.

New Zappos: Shoes--and gadgets to boot | Tech news blog - CNET

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