Zappos.com eyes $1 billion in annual web sales

Zappos.com is closing in on the $1 billion sales club.

In 2007, Zappos, No. 31 in the Internet Retailer Top 500 Guide, expects to generate web sales of $800 million, an increase of 34% over sales of $597 million in 2006.

But the retailer also expects to post $1 billion in web sales as soon as 2008. “At our current rate of growth, we anticipate breaking $1 billion in gross merchandise sales next year,” says Zappos CEO Tony Hsieh.

To achieve $1 billion in annual sales, Zappos, which maintains a low-key marketing program, will continue to concentrate on customer service. “We`re continuing our focus on service, which includes 24/7 customer service, free overnight shipping and free return shipping with a 365-day return policy,” he says.