Amazon Finalizes The Sale Of Online Shoe Retailer Zappos

by Yuliya Talmazan | November 2, 2009 at 04:41 pm

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Online retailer mammoth Amazon.com has now finalized the purchase of online shoe and accessories retailer Zappos.com. Earlier it was alleged that the purchase price was finalized at $920 million, but the sale was sealed at $1.2 billion. Healthier stock market this fall is credited for the increase in value of the deal. Back in July when the sale of Zappos to Amazon was first suggested, there were speculations that none of Zappos employees would be fired. Amazon also promised to pay out $40 million in cash along with 10 million shares to Zappos employees in July, and that deal seems to be still in effect.

It is reported that Zappos and Amazon will remain as separate brands for now. There were concerns that the quality of customer service at Zappos might decline after the merger. Zappos is famous for outside-the-box thinking when it comes to customer service.

The company sells shoes online, differentiating itself by its selection -- some 90,000 styles and more than 500 brands, from Bass to Givenchy -- and a near-fanatical devotion to customer service. Shipping and return shipping are free; most repeat customers get upgrades to free overnight or second-day delivery. "With Zappos, the shoe store comes to you," says Pamela Leo, a customer in Montclair, N.J. "I can try the shoes on in the comfort of my own home. I can tell if the shoes I want will really work with a particular suit. It's fabulous."

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