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Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Happy Birthday, Zappos: A Billion-Dollar Business Built on ... Culture?

By | June 1, 2009, 6:06am PDT

Summary: The number one objective of Zappos — known mostly for its selling of shoes online (and its free two-way shipping) — is to establish a great company culture. If you do that, CEO Tony Hsieh contends, all the “other stuff” falls into place. Like being able to sell people stuff. After all, if your staff is [...]

The number one objective of Zappos — known mostly for its selling of shoes online (and its free two-way shipping) — is to establish a great company culture. If you do that, CEO Tony Hsieh contends, all the “other stuff” falls into place.

Like being able to sell people stuff.

After all, if your staff is happy, they’ll naturally make your customers happy.

Today is the 10th anniversary of the birth of Zappos. The evidence is apparently in. Here’s the company’s sales growth story, in that period of happy culture (and business) creation:

What makes the folks in Las Vegas tick (and most proud), besides shaving their heads, painting their hair Zappos blue and showing off the knick-knacks on their desks on Zappos.tv? Between the Lines went to head Zapper Hsieh (the man known best, sometimes, for having nearly 700,000 followers on Twitter) and asked how the company would celebrate its birthday — and what he thought of the first ten years.

• How are you going to celebrate? What inside and outside Zappos events are you planning?

In Las Vegas, we will be holding an all-hands meeting at an amphitheater
in the afternoon. Afterwards, there will be a happy hour at a local bar.

However, our “big” celebration will be at the end of July, when suppliers
are in town for the WSA (World Shoe Association) shoe show. We will be hosting a big party with 3000+ attendees, including vendors and employees.

• What are you proudest about, of what Zappos has been able to do in its first ten years of existence?

I’m proudest of the family culture we’ve built at Zappos and that we’ve
been able to build the Zappos brand to be about the very best customer
service.

• What surprised you about how Zappos unfolded?

I think the most surprising thing is that we are in Las Vegas now. I don’t
think anyone thought that was even a remote possiblity when Zappos first
started.

• Not everything turns out as planned or well. Where did Zappos stub
its toe and how?

We’re certainly not perfect, and we make mistakes every day. Our biggest
mistakes are probably in bad hires, but we’ve definitely gotten better at
hiring over the years.

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Tom Steinert-Threlkeld is editor-in-chief of Securities Industry News, as well as a long-time media, technology and business journalist.

Disclosure

Tom Steinert-Threlkeld

Tom Steinert-Threlkeld has interests in two Web startups, which he cannot disclose until formally launched. They do not involve enterprise computing. He holds interests in technology companies only through mutual funds in which he has no say in their selection of investments. He has worked for Reed Elsevier PLC, Ziff Davis Media and the A.H. Belo Corporation.

Biography

Tom Steinert-Threlkeld

Tom Steinert-Threlkeld is editor-in-chief of Securities Industry News, as well as a long-time media, technology and business journalist.

He experimented with online news delivery a quarter century ago, with a text-only online service called StarText at the Fort Worth Star-Telegram in Texas.

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