Zappos.com top 10 tips at eTail

Share this article:
The eTail show content has been strong this year, one of the best coming from Tony Hsieh, CEO of Zappos.com.  Zappos has grown from a $1.6 million gross sales business in 2000 to $600 million in gross sales in 2006 and $800 million projected for 2007.  Here are his top 10 e-commerce tips for success.

1. The e-commerce business is built on repeat customers. (The free overnight shipping is the investment in marketing dollars at Zappos.com).
2. Word of mouth really works online. (Both positive and negative)
3. Don’t compete on price.  (Anyone can undercut, but it doesn’t build loyalty).
4. Make sure your Web site inventory is 100%.  (Nothing makes a customer madder than an unfulfilled order).
5. Centrally locate your distribution. (Zappos moved from CA to Kentucky to reach the east and west coasts within 2 days for ground –UPS and FedEx have hubs nearby).
6. Customer service is an investment. (Not an expense).
7. Start small.  Stay focused.  (It will never be prefect from the start, so build it out as you go).
8. Don’t be secretive.  Don’t worry about competitors.  (Zappos actually finds products on competitors’ sites and refers business when they don’t have the stock!)
9. Actively manage your company culture.  (Zappos is about customer service and all level employees go through the same 5 week training which includes taking phone calls and fulfilling orders in the warehouse to understand how the company works).
10. Be wary of so-called experts (including me…).  (Zappos has hired consultants, but has found that no one knew their business better than they did.)
Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Direct Line Blog

Sign up to our newsletters

Latest Jobs:


Company of the week

Data Services, Inc. meets the needs of today's data-driven marketer by providing front-end database management and data analytics platforms alongside our expertise in global contact data quality, database building and ongoing maintenance that comes with our 45+ years in business.


Find out more here »

More in Direct Line Blog

Finally, A Data Program for the People

Finally, A Data Program for the People

A British website seeks voters' help in striking clichés from the stump speeches of political candidates.

Four Brand Emails That Offer Tricks and Treats

Four Brand Emails That Offer Tricks and Treats

Happy Halloween from my inbox to yours.

Creative Marketing Is Good; Useful, Relevant Messages Are Better

Creative Marketing Is Good; Useful, Relevant Messages Are ...

The next wave of the digital evolution is pushing marketers toward hyper-relevance; but not everyone is catching on.