I'm at eTail in DC and will be posting notes from some of the sessions:
First up,
Tony Hsieh - Zappos.com CEO - from yesterday - they're slowly moving into other areas, figuring out the model.
They didn't start out day 1 with FedEx overnight shipping for orders and returns, they gradually got there, putting marketing funds into it.
Ten thoughts:
#1 Ecommerce business is built on repeat customers
#2 Word of mouth really works online
#3 Don't compete on price - $10 off customers not loyal
#4 Make sure inventory is 100% accurate
#5 Centrally locate your distribution - KY is good
#6 Customer service is an investment
#7 Start Small. Stay focused.
#8 Don't be secretive, don't worry about competitors
#9 You need to actively manage your company culture
#10 Be wary of so called experts
Labels: DC etail, etail, etail 07, Tony Hsieh, zappos
1 Comments:
I am curious to how Zappos internally justifies that offering free overnight and return shipping is NOT competing on price. At the end of the transaction the 'price' the customer pays (or what is charged to their credit card) is the product price + shipping + taxes (if applicable). High advertised prices + free shipping is equal to Low Advertised Prices + not-Free shipping charges. Retailers like Amazon & Zappos justify free shipping as a marketing cost, but don't you think shipping is just another element of the final price?
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