To reach its goal of $1 billion in annual web sales, Zappos.com is introducing more product lines and e-commerce tools to help woo customers and transition beyond its traditional footwear business, says CEO Tony Hsieh.
Bill Briggs , Senior Editor
Zappos.com is adding more products and e-commerce tools to help lure customers to its web sites and transition beyond its traditional footwear business.
The company tested free overnight shipping during the week before Christmas and has now added the feature to its web site on a permanent basis, says CEO Tony Hsieh. “Along with free return shipping, we believe that this will really change the way consumers think about shopping online with us,” he says.
In 2006, Zappos, No. 34 in the Internet Retailer Top 500 Guide to Retail Web Sites, also rolled out a new inventory system that tracks the movement of nearly 3 million pairs of shoes in its Nevada and Kentucky fulfillment centers. The program feeds real-time data into the financial reporting system, which helps determine the value of all merchandise carried on Zappos.com and related sites.
Web sales continue to grow for Zappos, reaching $597 million in 2006 from $370 million in 2005, an increase of 61%.
Other 2006 improvements included increasing the total number of brands offered on its web site to more than 1,000 and launching its “Powered by Zappos” web site design and hosting program for C & J Clark America Inc., an Edison, NJ, shoe manufacturer. The brands include Clarks.zappos.com, Bostonian.zappos.com, Indigo.zappos.com and Privo.zappos.com.
Zappos also introduced two vertical sites -- outdoor.zappos.com, which carries apparel and products for outdoor activities such as camping and hiking, and running.zappos.com, a site specializing in shoes, apparel and other running gear.
The company’s goal for 2007 is to top $800 million in gross sales. “It`s all extremely exciting, but at the same time, we have quite a bit of work cut out for us,” Hsieh says.