Is Zappos profitable?
Yes. We made a 1% profit last year. Three years before that we were running at break-even. We could have been profitable sooner, but we decided to put it back into customer service. Do you envision a time when everything we buy comes from the Internet? This isn’t based on scientific evidence, but I believe the majority of retail will be brick and mortar. The online portion will continue to grow. I think online will end up being one-third of all retail in the long term. What is it now? I’ve seen reports that say it’s anywhere from 5% to 7%. In some categories like airlines it’s even higher, maybe 40% or 50%. Does Zappos advertise? We’d rather put the money back into the customer experience like free return shipping or 24/7 customer service. Not only do we get more repeat customers, but we also get word of mouth. All the repeat customers’ friends hear about us. It’s that combination that’s fueled our growth. What was latest purchase you made on Zappos? A pair of running shoes. What’s nex
