Zappos is a different kind of awesome
Tony Hsieh built his online shoe retailer into an e-commerce powerhouse. But with credit tightening and investors eyeing the exits, Hsieh was forced to ask: Was selling Zappos really the only way to save it?
Really great article I found via Dustin Curtis (@dcurtis). Amazon and Zappos essentially have polar opposite approaches to online retail.
I think one of the things I've always liked about Zappos is that they don't compete on price, and they are upfront about it.
One of the ways that Amazon tries to deliver a great customer experience is by offering low prices, whereas at Zappos we don't try to compete on price.
It seems like, in today's world, that shouldn't even be possible. And yet Zappos has managed to create value for customers in online retail in a way that no one else really has. People (including myself) will pay an extra $10 for a pair of shoes just because they know that, if they have a problem or want to make a return, it's going to be easier to do with Zappos than with any other online retailer. That's an interesting business hook and one that can't be easily copied. It's also at odds with Amazon's model. You can't write an algorithm that makes customer service more efficient. You can't price discriminate. Hell, you wouldn't even want to—it's against everything you stand for.
I like Tony Hsieh because he didn't sent out to change the world. All he tried to do was make it a little bit better. And he did it.