Amazon owns the online shoe and apparel retailer, Zappos.
The Acquisition of Zappos
Amazon acquired Zappos in July 2009 through an all-stock deal. At the time of the acquisition, the deal was valued at approximately $1.2 billion. This strategic move allowed Amazon to expand its footprint in the footwear and apparel market, leveraging Zappos's strong brand reputation and unique approach to customer service.
Here are some key facts about the acquisition:
| Detail | Description |
|---|---|
| Acquired Company | Zappos.com |
| Acquiring Company | Amazon.com, Inc. |
| Acquisition Date | July 2009 |
| Deal Type | All-stock deal |
| Approximate Value | ~$1.2 billion (at the time of acquisition) |
Zappos's Unique Business Model
Zappos, founded in 1999, quickly established itself as a pioneer in online retail, particularly known for its extensive selection of shoes and its commitment to exceptional customer service. Even after the acquisition by Amazon, Zappos largely maintained its distinct corporate culture and operational independence.
Key aspects of Zappos's business model that made it an attractive acquisition include:
- Customer-Centric Philosophy: Zappos is famous for its "WOW" customer service, including free shipping both ways and a 365-day return policy. This focus on customer satisfaction built immense brand loyalty.
- Company Culture: The company fostered a unique and strong internal culture, emphasizing happiness, creativity, and unconventional thinking among its employees.
- Product Range: Beyond shoes, Zappos expanded its offerings to include clothing, handbags, accessories, and eyewear, providing a comprehensive online shopping experience.
By integrating Zappos into its portfolio, Amazon gained a valuable asset with a proven track record in a competitive niche, while allowing Zappos to benefit from Amazon's vast resources and technological infrastructure. Zappos continues to operate as a distinct entity under the Amazon umbrella, serving millions of customers globally with its vast footwear inventory. You can learn more about Zappos on its Wikipedia page.
