Thursday, November 19, 2009

Amazon.com bought online shoe retailer Zappos.com in a $1 billion-plus deal

Clearly, Amazon.com sees shoes as a growth category. The company just bought online shoe retailer Zappos.com in a $1 billion-plus deal — the biggest acquisition in its history. Amazon has also been expanding the shoe business in some of its big international markets. In March, the company launched an ecommerce site in Japan, called Javari, devoted to shoes and accessories. And Amazon just launched another Javari shoe site in the U.K.

Before Amazon bought Zappos, it tried out its own branded shoe-and-accessories site, called Endless.com. But Endless didn't get major traction in the market, and Amazon ended up acquiring Zappos (Endless is still around, however).

Endless and the U.K. Javari site offer free shipping and free returns for up to a year — policies that Zappos used to build a loyal following and reputation for customer service.

Amazon seems to be taking that model into other types of apparel. The company recently launched a new denim store with free shipping and free 30-day returns on jeans.

This article is from www.techflash.com

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