Zappos’ Pay Out, Worth it or Not?

Posted by in Uncategorized

Zappos' work environment
Zappos.com is one of the world’s largest shoe stores. What makes it special is its high-level customer services and its organizational culture. However, in Tianyang Ma’s blog, he pointed out that the current company culture does not fit the company at all. His supportive reasons are the less needs and high cost. However, I totally do not agree with him.

Zappos’ outstanding customer service is an important value proposition that shouldn’t be abandoned. To maintain this advantage, money should be invested in employee training and organizational culture construction. Customer services of high quality are mainly achieved by experienced workers, answering the phone with a joyful mood and a well understanding of products and firm’s operation. Thus, company is supposed to ensure that their workers are well-trained and always in a good mood. Moreover, workers at the call center frequently deal with customers’ complaints and dissatisfaction, even are treated by invectives. The psychological and emotional stress employees are likely to bear make it more reasonable to create a harmonious and cheerful working environment.

Though these cost a lot and Zappos only gets 5% profit from its total revenue, compared with its importance, the expense is reasonable. Zappos ought to figure out new development strategy to increase profit rather than shrink necessary expense.