Amazon Announces Bid to Acquire Zappos.com
For those that are less familiar with Zappos.com, they are the online shoe retailer that has a desire to take customer satisfaction to a whole new level. Some might even call it an obsessed! In doing that, they actually give their direct phone number on every page and actually invite you to call them with any questions, concerns or directions. Very atypical behavior for an ‘online’ marketplace and yet, this is exactly what differentiates them.
The ‘personality’ of Zappos, as a company, is very unique all the way to the empowerment of their employees to meet the needs of the customer at that point of contact, regardless of what the problem is. That’s right, no more working up the chain to get a problem resolved. How LUX-tastic is that??? Zappos.com has been making waves because of this approach and although, many in the business field questioned their methods, their customers seem to be loving it—evident by their almost $1 billion dollars in sales last year and most of that generating from word of mouth!!
So you might be asking, why would Amazon be interested in Zappos? Well, according to Jeff Bezos, it’s the very thing that sets them apart in the industry—their attention to their customers that he highly values.
“Zappos has a customer obsession, which is so easy for me to admire,” Jeff Bezos said. “I get all weak-kneed when I see a customer-obsessed company.”
Now this acquisition is not like any other, Bezos has reaffirmed. Zappos is highly valuable due to the way they currently operate and he will not stand in the way of that pairing. Basically, Zappos will operate very much the same way as before, but with very different stakeholders.
In a note to his employees, Mr. Hsieh said Zappos would continue to operate separately from Amazon. “We plan to continue to run Zappos the way we have always run Zappos — continuing to do what we believe is best for our brand, our culture and our business. From a practical point of view, it will be as if we are switching out our current shareholders and board of directors for a new one, even though the technical legal structure may be different.”
The goal here is not to ‘change’ the secret recipe that has made Zappos so successful thus far, but to couple it with the guidance and resources that Amazon is so well known for. The common denominator is that they both have strong forward visions for their customers and a powerful leadership team to direct this focus!! Apparently this just might be a ‘match made in heaven.’ Now, only if dating was this easy! ☺
“Amazon plans to continue building these stores and focusing on making the experience even better for our customers. There are no plans to shut down any existing stores based on the acquisition of Zappos.”—According to spokesman, Craig Berman.
As you might expect, this agreement is definitely not without its cost. Amazon has offered $847 Million, almost hitting the infamous $1 billion mark to get this deal signed!! That’s quite the investment considering the economic landscape, but it also clearly states what Amazon thinks of Zappos.
So LUX Nation, what do you think of this newly inked deal??