Amazon Purchases Zappos: Why It Makes Sense for Both Brands
According to TechCrunch, Amazon has purchased well known online shoe retailer Zappos. Very rarely do you read about a business partnership, merger, or acquisition that makes this much sense for both brands.
In a letter by Zappos CEO Tony Hsieh published on their website, Hsieh explains that Zappos will remain an “independent entity and a ‘wholly-owned subsidiary’ of Amazon.”
Both Amazon and Zappos have won with this deal. Amazon’s greatest strength is the size and infrastructure of its operation– from exclusive deals with retailers to its legendary affiliate program. The sheer size of the Amazon webstore is astounding, and they have leveraged long tail and niche marketing to rise to the top of the online retail business. While Amazon’s size is its greatest asset, it is also its greatest weakness. People worry about customer service and personal interaction from a store the size of Amazon.
Zappos is legendary for its customer service, transparency, and social media presence. People shop at Amazon because they have just about every product imaginable and an extremely clean and intuitive shopping experience. People shop with Zappos partly because of their selection, but also because they are a company where customer service is at the forefront of their whole operation.
Now, with the merger, Zappos gets Amazon’s infrastructure and Amazon gets Zappos’ beloved personality. This is great news for both brands, and could forecast a larger trend of big business partnering with smaller businesses who excel in areas such as customer service or social media outreach.
But the best news of the entire deal: Soon you will be able to buy a pair of Minolo heels and a copy of Groundswell using the same ecommerce interface. Marketers everywhere are salivating.
Check out Jeff Bezos’ comments on the merger:
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