Aldo R.

Rappaccioli Montealegre
Professor Roger Lanuza
Service Marketing Class
Zappos.com
Introduction
I conducted this study in order to understand the factors that have led to companies like
Zappos.com and Privalia to be two of the companies selling e-commerce most important
in the world.
With this work I would also like to differentiate strategies or paths that have followed
each of them separate but equally successful.
A quick look at Zappos.com
Zappos is a company that sells shoes, clothing, handbags, watches (and eventually a
combination of other products).
Founded in 1999
1600 employees (half at headquarters in Las Vegas, half in Kentucky).
Zappos is known for its service:
or providing the best possible online shopping service.
or Fast free shipping, free return Product 365 days return policy product.
or compliance Fast, fast delivery, fast, friendly and knowledgeable customer service.
The best selection
o About 1,200 brands, around 200,000
styles, about 900,000 unique UPCS
or 4 million items in store
or multiple angles Photography
or 100% inventoried products (no drop ship)
The success of Zappos.com
Zappos.com has built a strong brand and has not stopped growing since its founding. The
gross revenue numbers speak for themselves:
Source: www.nytimes.com
Why is this ?, What are the keys that lead to e-commerce company multiply their income
this way.?

When Nick founded Zappos.com was rejected by almost all venture capitalists, because
nobody believed that shoes were a good product to sell online. After all, this was logical.
Who would buy a shoe without prove it before? However, Nick remained firm, supported
by the fact that the shoes were a market of 40 billion dollars in the US, with two billion
sold through mail order catalogs. So why not ?.
Suddenly, the shoes proved to be an optimal target for the search engine marketing or
search engine marketing (SEM) for very compelling reasons. First, people look for the
brand shoes. Zappos.com did not need to spend a dollar to build the Zappos brand. All he
needed was a consumer clicked
in any advertisement for Adidas, Vans Nicke or shoes. Apart from this, at no time needed
Zappos.com indoctrinate consumers about their product, people know the shoes to spare.
Furthermore, the shoes have a wide margin of profit. Normally these margins ranging
between 30 and 50%. This leaves a wide margin of maneuverability SEM campaigns.
When Zappos.com was founded in 1999 there were no search engines, so it was almost
impossible for this to become a key factor in its success. Zappos.com people were smart,
they recognized and exploited perfectly the emerging market for SEM technologies. But
possibly also Zappos.com had succeeded, I doubt I would have grown so fast without
them.
Superior consumer service
Both Nick and Tony attribute the success of Zappos.com's obsession offer two different
customer service and quality. This customer service is what has enabled the company to
build a good customer base. Approximately 50% of Zappos.com orders are from existing
customers and nearly 30% of the orders are from new customers recommended by
regular customers.
How to Zappos.com for consumers to return to buy? Zappos.com has details with
customers. While other retail customers received their orders within 5-7 days Zappos.com
is devoted to send an e-mail to its customers, chosen at random, saying that by the mere
fact of being such good customers be free shipping and receive your order the next day to
surprise them. This small gesture, or not so small, creates an impression to the consumer
doing this again visit the website of the company, and not only that, but with other
potential consumers share their experience.
The other key policy Zappos.com was their return policy. The company was charged at a
stroke the pressure of consumers around buying shoes online offering free return shipping
and free trade policies 365 days a year.
But certainly where zappos makes the difference is in their call center customer and
ultimately your company culture.
When it began Zappos.com thought they were going to win by offering the best and
largest selection of shoes. The company initially launched as SheSite.com -a good name

to fit that strategy. But Nick and Tony found it very difficult to offer a wide choice of first
shoe. Not all manufacturers of shoes were willing to work with a small company selling
online,
which she would take many years to get this great selection of shoes. That's when the
team decided to concentrate its efforts on offering the consumer the best possible service
through its call center. As such, the company focused on getting a business culture and
customer service breaker. This decision became a key factor in the success Zappos.com.
Some details of the Call Center of Zappos.com
Zappos.com employees are the initial four weeks serving customers in the call center
(initially accompanied) and a week in Kentucky packing and dispatching orders. It is he
who is set to be occupied. Sweeper to vice president of finance.
The client is encouraged to call and how long it takes a call or the live performance of it
is not measured, but the satisfaction and WOW! Surprise is expected to launch the client
when, for example, a request made to eleven at night they are delivering the next
morning. Always trying to exceed customer expectations
The call center must be in the same place as the Management and Operations Center: in
Vegas.
Zappos treats its suppliers equally well and give them all the information on the
progress of their lines sales and profitability
detailed by product.
So if the employee who answered did not find the pair of shoes that the customer wants
will look where competition and will inform the client.
These are some of the characteristic features of call center zappos.com and its corporate
culture. Therefore, it is clear that there is no better business to take care of the customer
loyalty. And also proves that theory to replace Hsieh Advertising and Promotion Services
and word of mouth can be, as in this case, perfectly valid. The most obvious results are
obvious:
Of 8.9 million customers (2.9% of the US population)
3.8 million bought in the last twelve months
75% of purchases by customers who return to buy
Customers buy back 2.5 times in 12 months
The first average purchase is $ 111.98
The second average purchase is $ 143.22

Zappos.com deductions
As a student I'm going to forgive me if my conclusion is too obvious. However, it seems
that the formula for success for the start of a site e-commerce retailer is to sell a product
that is ideal for SEM and have a good strategy as far as getting customers to repeat the
experience. Zappos.com gets what with its excellent
customer service.
Final Conclusion
This exercise has helped me to realize that today it is essential to the quality and good
customer service, especially in e-commerce business. Gain the trust of customers costs
money but is absolutely essential for a good target customers.
Finally it has also helped me realize that no matter how good it may seem a philosophy,
structure or business strategy there are always unknown factors and can markedly
increase the production of our organization.
Works Citied:
www.zappos.com
www.fayerwayer.com
www.ecommerceoptimization.com
www.crunchbase.com
www.fastcompany.com
www.ecommercetimes.com
www.nytimes.com
www.slideshare.net/zappos/
www.privalia.com
www.blogdeemprendedores.com/privalia-el-poder-de-las-marcas/
www.elpais.com
www.internetnews.com/ec-news/
www.barcelona.twestival.com