July 18, 2006, 12:00 AM

Zappos on track to post 2006 web sales of $600 million

Zappos.com remains on track to post web sales of $600 million in 2006, an increase of 62.1% over 2005 when sales totaled $370 million, CEO Tony Hsieh tells InternetRetailer.com.

Zappos.com remains on track to post web sales of $600 million in 2006, an increase of 62.1% over 2005, CEO Tony Hsieh tells InternetRetailer.com.

“Last year we did $370 million in gross merchandise sales, so it`s a significant up tick,” Hsieh says.

Since launching a web site in 1999, Zappos, No. 34 in the Internet Retailer Top 500 Guide to Retail Web Sites, has built an e-commerce operation that includes an inventory of 650,000 SKUs, almost 700 employees and two fulfillment centers in Nevada and Kentucky. Zappos carries over 500 name brands and more than 90,000 styles.

But the company also does less marketing and advertising than other big online retailers, preferring instead to concentrate on word-of-mouth advertising. “We are a pretty boring story,” Hsieh says. “Every year we just keep focusing on providing the best service possible and that`s what drives our growth as well as repeat customers and word of mouth.”

Today repeat customers account for about 60% of the company’s business.

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