Amazon Buys Zappos: Will Zappos Customer Service Suffer?

by Jon Azpiri | July 22, 2009 at 01:39 pm
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Zappos Monopoly is Awesome!

Zappos Monopoly is Awesome!

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Zappos, the popular online shoe retailer, has been bought by mammoth Internet retailer Amazon for $920 million. The deal is expected to close this fall.

Amazon CEO Jeff Bezos released a YouTube video directed at Zappos employees, ensuring them that the Zappos management team will remain intact. Amazon will also provide Zappos employees with $40 million in cash and restricted stock.

Many Zappos customers are concerned, however, that the coming Amazon-Zappos merger could mean that Zappos' stellar service will devolve into the less-than-stellar service offered by Amazon.

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Myself and the Managing Director of IBF had the privilege of going on a Zappos Corporate Offices Tour while in Vegas for our conference. It was quite the unique experience, getting picked up in the Zappos' covered Escalade going to the Henderson Campus, as the staff embraced us to be a part of the amazing culture of the house that Tony built for a few memorable hours. Congrats to Tony and the Zappos team! We here at the IBF will never forget our experience and thank you for the hospitality.

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I think service will suffer.  It usually does after a takeover by a huge cooperation.

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