Have you ever noticed that Amazon boasts a large number of subsidiaries and acquisitions?
Most people associate this huge corporation with its online retail platform. However, the company has also expanded into most major forms of media and many other fields in recent years. The secret behind most major companies is the focus on constant expansion. They often do this by purchasing smaller companies that already have a presence in key areas.
So, if you have ever wondered, ‘does Amazon own Zappos?’, then it’s time to find out…
- The Story Of Zappos
- Zappos Customer Service Values
- The Corporate Culture
- Zappos Current Ownership
- Other Companies Owned by Amazon
- Ever Thought Of Working For Amazon?
- Does Amazon Own Zappos? – Final Thoughts
The Story Of Zappos
Zappos is a popular online shoe and clothing store that was originally launched as Shoesite.com. The company is based in Las Vegas and was founded in 1999 by Nick Swinmum. Tony Hsieh and Alfred Lin were the main investors, and they contributed a startup fee of $2 million.
Name Change and Expansion
After a few months, the name was changed to Zappos. It comes from the Spanish word Zapatos, which means shoes. Within a couple of years, the corporation had become one of the world’s most popular online shoe retailers. Before long, it had expanded to sell handbags, clothing, sunglasses, jewelry, and accessories.
In the first year of operation, the company made $1.6 million in gross sales. The following year, this figure rose to $8.6 million. By 2004, the revenue from gross sales rose to an impressive $184 million.
Read more: Amazon Subsidiaries
Wide Variety and Huge Discounts
One of the secrets behind the success of Zappos is the huge inventory of brands and shoe styles. Shoppers can find brands like Adidas, New Balance, Converse, and Nike in one convenient place. The website is easy to navigate, and there are often deals and discounts to take advantage of.
There are shoes and other products for men, women, and children. Shoppers can find everything from fashionable high heels to trendy running shoes. Shoppers are also treated to a generous returns policy, which covers a full year.
Zappos Customer Service Values
Another aspect that has helped the company grow is its commitment to excellent customer service. These days, most large corporations focus on finding ways to reduce the number of phone calls made and received. However, Nick Swinmum decided to do the opposite.
A Personal Approach
Customers can call a member of the customer service team at any time of the day or night. This personal approach has helped to earn customer loyalty while also winning new customers. Speaking to a polite and friendly team member is much more appealing than many modern methods.
The team answers more than five thousand calls each month from customers around the world. In addition to this, more than a thousand emails are answered each week. And there is no set script for employees to follow, which makes calls and emails feel more natural.
This radical approach to customer service has helped to increase customer loyalty dramatically. Customers are invited to ask questions and feel that their issues will be handled. This helps the team to find effective solutions to common issues and other challenges.
The Corporate Culture
Nick Swinmum recognized very quickly that happy employees tend to be much more productive. This, in turn, leads to better and more efficient customer service. This element quickly became an important part of the company culture.
The working environment is fun and collaborative. This has helped to retain employee loyalty, which in turn has helped the company to grow. All employees are given the autonomy to work on their own objectives instead of being micromanaged.
Zappos Current Ownership
Amazon purchased Zappos in 2009 for a reported $1.2 billion. However, the online shoe retailer is still operated as a separate website. Customers can still enjoy the same extensive product range and the popular 365-day return policy.
Jeff Bezos was impressed by how quickly the online shoe retailer managed to increase its revenue. Another deciding factor was the commitment to customer service. These qualities are also embraced by Amazon, and the two companies share many similarities.
Other Companies Owned by Amazon
Over the years, Amazon has compiled a very long list of acquisitions, especially in the retail sector. More than a hundred companies have been acquired, which has helped the retail giant to increase revenue and boost its presence around the world.
Some of the largest companies owned by amazon include:
- Body Labs
- Whole Foods Market
- One Medical
- Umbra 3D
- Annapurna Labs
Ever Thought Of Working For Amazon?
Undoubtedly, Amazon is a great company to work for, as can be seen when we answered the question… How Many Employees Does Amazon Have? So, if you’re interested, check out our in-depth guide to the Amazon Application. And once you’ve applied, you’ll need to know What Does Amazon Jobs Application Under Construction Mean and the steps to take.
Further employment policies at Amazon you should look into are the Amazon Vacation Policy, the Amazon VTO Policy, and the Amazon UPT Policy if you need time off, along with the Amazon Mandatory Overtime Policy, the Amazon Transfer Policy, and if need be, the Amazon Termination Policy and Amazon Rehire Policy for 2023.
Does Amazon Own Zappos? – Final Thoughts
Zappos was founded in 1999 and quickly became a very popular online shoe retailer. Just a decade later, Amazon purchased the company, so yes, Amazon does own Zappos, but Zappos has its own CEO and chairman, and the annual revenue is currently estimated at around $2 billion.
However, Amazon oversees all of the company’s operations and reaps the rewards. This is one of the main strategies that the retail giant has used to boost its annual revenue. In addition, Amazon also owns Whole Foods, Metro-Goldwyn-Mayer, and numerous other businesses.
Enjoy your shopping online with Zappos!