Zappos.com: Happy People Making People Happy

Category: Retail
Brand/Client: Zappos.com / Zappos Development, Inc.
Primary Agency: Mullen

STRATEGIC CHALLENGE

The Market Situation

The online retail space is crowded and still growing – even during the Great Recession. Last year, more than 154 million people in the U.S. bought items through e-commerce – representing 67% of the total adult population who go online and a 4% rise from the previous year 2008.1 What compels consumers to shop online is the universal desire for convenience, value and selection.

In recent years, online shoppers have become even more savvy and smarter by increasingly using the Internet to "hunt" for what they're looking for, driven by the need to comparison shop. They believe that, "The more I look, the better chance I have in finding deals." This online price-hunting behavior presents a significant challenge for Zappos.com. Competitors such as Macys.com, Endless.com and Piperlime.com distribute a constant stream of coupons and special discounts. By comparison, Zappos.com does not believe in online price discounting – it focuses on enhancing the shopping experience, by offering access to a customer service team 24 hours a day, free overnight shipping both ways, speedy order fulfillment and a 365-day return policy.