Amazon Buys Zappos for $800 Million in Stock

By Jeralyn, Section Economy
Posted on Wed Jul 22, 2009 at 06:30:38 PM EST
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Amazon is acquiring Zappos, the best online shoe retailer ever (in my opinion) for $800 million in stock.

Zappos, a ten-year-old private company that has won fans with perks like free shipping and personalized service, is the largest player in that market....The companies said the Zappos management team would remain intact, and that it would continue to operate as an independent division of Amazon from its offices outside Las Vegas. Zappos, whose backers include Sequoia Capital, also said it planned to maintain its shipping facility in Louisville, Ky.

I hope they run it the same. Amazon is stingy with affiliate commissions while Zappo's pays one of the best rates around. If that changes, I'll be very disappointed.

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Amazon Buys Zappos for $800 Million in Stock | 7 comments (7 topical)

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Catchie Name (4.00 / 1) (#3)
by Saul on Wed Jul 22, 2009 at 09:31:16 PM EST

Looks like the name Zappos was derived from the Spanish word for shoes which is zapatos

LOl I'm the first to comment about shoes! (none / 0) (#1)
by Angel on Wed Jul 22, 2009 at 08:48:32 PM EST

My sisters would be so proud. I love Zappos. Great service, the overnight shipping is unbelievable, and returns are free! Plus they just have great stock and great sales.

Zappos for Chucks (none / 0) (#2)
by Peter G on Wed Jul 22, 2009 at 09:18:41 PM EST

They usually have the best variety and stock, and the best prices, on Chuck Taylor All-Stars, making both me and my 19-year-old daughter happy.

Amazon is a reliable company (none / 0) (#4)
by lucky leftie on Wed Jul 22, 2009 at 09:56:56 PM EST

I've shopped there many times. But Zappos is in a class by itself. Their customer service is outstanding. I hope it stays exactly as it is.

interesting. (none / 0) (#5)
by cpinva on Wed Jul 22, 2009 at 11:21:46 PM EST

the fact that they only got stock, and not cash or a combination of the two, leaves me slightly underwhelmed. it will be interesting as well, to see how the market reacts to this acquisition, with respect to the value of amazon afterwards.

I feel guilty focusing on shoes (none / 0) (#6)
by Militarytracy on Thu Jul 23, 2009 at 12:09:53 PM EST

when so many people are unemployed right now with much larger worries. I recently purchased a pair of Sambas for my husband for Father's Day. They were a new color scheme that is difficult to keep in stock in stores so when I went internet shopping for them I ran across Onlineshoes.com. Nice shoes with free shipping and free exchanges. I did not have them overnighted so don't know how well they do that. I don't think they have the inventory that Zappos has but I will gladly give them my business again if they have what I'm looking for.

: Zappos used to have a 12 month (none / 0) (#7)
by Inspector Gadget on Thu Jul 23, 2009 at 11:29:04 PM EST

return policy...pretty great.