Disha

Build story · United States · 1999–2009

Zappos: customer service as the brand

Zappos sold shoes online — once thought impossible — by offering free shipping both ways, 365-day returns, and famously generous phone support, before Amazon bought it for about $1.2 billion.

By Shivam Bhandari · Reviewed 31 October 2026 · How we write

by the numbers

Return window
365 days, free both ways
Pay-to-quit offer to new hires
about $2,000
Gross sales (2008)
over $1 billion
Amazon acquisition (2009)
about $1.2 billion

What happened

Nick Swinmurn started the company in 1999 after failing to find shoes he wanted. To test demand he photographed shoes in local stores and posted them online; when orders came in, he bought them at full price and shipped them. Tony Hsieh invested and later became CEO.

People were reluctant to buy shoes without trying them on. Zappos removed the risk: free shipping, free returns, and a 365-day return window. Its call centre in Las Vegas had no scripts or time limits — one call reportedly lasted over ten hours. It even offered new hires about $2,000 to quit after training, to filter out people who weren't committed.

Gross sales passed $1 billion in 2008. In 2009 Amazon acquired Zappos for about $1.2 billion in stock, keeping it as a separate brand and culture.

Timeline

  1. 1999

    Demand tested by photographing shoes in stores.

  2. 2000

    Tony Hsieh joins as co-CEO.

  3. 2008

    Gross sales pass $1 billion.

  4. 2009

    Acquired by Amazon.

what made it work

  • Removed the main purchase fear with free, long returns.
  • Treated service as marketing — happy customers told friends.
  • Hired and paid to protect a service-first culture.
  • Tested demand before building inventory.

the lesson

When customers fear a purchase, removing the risk can turn a ‘can't sell online’ product into a category leader.

Apply it to your business

  1. 1Identify your customer's biggest fear and remove it.
  2. 2Spend on service where it creates word of mouth.
  3. 3Test demand before you stock up.

Laws at work in this story

Figures are rounded and drawn from public reports, company filings and widely cited coverage at the time. Check the company's latest filings before relying on any number.

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