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Daniels Fund Ethics Initiative University of New Mexico Zappos: Delivering Happiness to Stakeholders INTRODUCTION Can a company focused on happiness be successful? Zappos, an online retailer, is proving that it can. The company’s revenue grew from $1.6 million in 2000 to $1.64 billion in 2010. Tony Hsieh, Zappos’ CEO says, “It’s a brand about happiness, whether to customers or employees or even vendors.” Zappos’ zany corporate culture and focus on customer satisfaction has made it both successful and a model for other companies. This case examines how Zappos’ focus on stakeholder happiness has contributed to its success. First, we examine the history of Zappos, its core values,…show more content…
Products are grouped in specialized segments, with some (like outdoor products) on their own mini‐sites. Customers can view each product from multiple angles thanks to photographs taken at the company’s studio, and Zappos employees make short videos highlighting the product’s features. Zappos analyzes how customers navigate the site to improve features, adapt search results, and plan inventory. 3 The spirit of simplicity, innovation, and great service extends to Zappos’ inventory and distribution systems as well. Zappos has one of the few live inventory systems on the web. If the Zappos website displays an item, it is in stock. Once the company sells out of an item, the listing is removed from the website. This helps to reduce customer frustration. Its inventory and shipping systems are linked directly to the website via a central database, and all its information systems are developed in‐ house and customized to the company’s needs. Their warehouses operate around the clock, which allows them to get a product to the customer faster. Fast shipping creates an instant gratification that is similar to shopping in a physical store. Most companies have a negative view toward returns, but Zappos’ mentality is the complete opposite. It sees returns as the ability to maintain customer relationships and to increase its profits. Zappos offers a 100% Satisfaction Guaranteed Return Policy. If a customer is not satisfied with
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