Zappos.com is an online shoe and clothing shop currently based in Las Vegas, Nevada.
In July 2009, the company announced it would be acquired by Amazon.com in an all-stock deal worth about $1.2 billion. Since its founding in 1999, Zappos has grown to be the world's largest online shoe store.
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. Of its customers, 75% are repeat buyers.
The company's customer service reputation has been augmented through viral spreading as well: "Shoe merchant Zappos has benefited from Internet wildfire. When Zappos offered special return shipping assistance, beyond their company policies...the good word about the company spread quickly throughout the blogosphere."
Type: Subsidiary of Amazon.com
Headquarters: Las Vegas, Nevada, United States
Warehouse: Shepherdsville, Kentucky, United States
Key people: Nick Swinmurn, founder, Tony Hsieh, CEO, Chris Nielsen, CFO
Products: Shoes, handbags, eyewear, accessories, clothing
Revenue: US$1 billion (2009)