Zappos’ pay out, Worth it or not?

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Zappos.com is an online shoe and clothing shop currently based in Las Vegas.

In July 2009, the company announced it would be acquired by Amazon.com in an all-stock deal worth about $1.2 billion. Since its founding in 1999, it has become one of the world’s largest online shoe stores.

Zappos is famous for its outstanding customer services, they offer unlimited-time phone service and 365 days free shipping / return policy.  In order maintain the quality of the customer service, Tony Hsieh, who is the CEO of Zappos, creates a company culture that making all the employee in the company feel like they are family.  In Zappos office, they offer free food, decorate their working place, and organize interesting event for employees. every years, Zappos spend a large amount of money to building their company culture and making the employees happy for what they are working. Hseih says, the pay back will not occur in recent 1 year or 2, but it will eventually work for the company.

However, In my opinion, this kind of company culture that satisfy employees to ensure their working quality and loyalty to company is not fit for Zappos.  Unlike those high tech companies like google, most employee in Zappos working as call center staff to help customers, this occupation does not require specific skills, which means the company doesn’t need to spend too much time and money on training employees, and they can easily get new staff as well.  So there is no reason to spend a large proportion of the cost to fulfill employee.  What have been mentioned in the video is that Zappos only get 5% profit from the total revenue, which is quite dangerous for a company, hence if they stop unnecessary investment, it might help Zappos more.

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