Zappos expects to top $1 billion in web sales in 2008
Online shoe retailer Zappos.com Inc. sees 2008 as the year it will join the $1 billion web sales club.
In 2007, Zappos, No. 31 in the Internet Retailer Top 500 Guide, expects e-commerce sales to rise by about 34% to around $800 million from $597 million in 2006.
After nearly a decade in business, CEO Tony Hsieh expects to top $1 billion in online sales next year. “We are forecasting to do over $1 billion in gross merchandise sales in 2008,” says Hsieh.
Zappos, which began selling online in 1999 and currently stocks more than 3 million shoes, handbags, clothing items and accessories from over 1,100 brands, keeps growing by emphasizing customer service and keeping its marketing costs to a minimum, he says. “Our growth has been driven primarily through repeat customers and word-of-mouth,” says Hsieh. “We will continue to focus on building our brand around providing the best service.”
Zappos is also growing through strategic acquisitions. In July Zappos acquired footwear and accessories site 6pm.com from eBags.com for an undisclosed price.
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