Zappos Company Culture – The Zappos Family on Nightline


Tonight on Nightline, one giant step The economy may be struggling but from strappy sandals to sexy From cross trainers to crocs, this shoe store is revolutionizing how business Gets done From the global resources of ABC News with Terry Moran, Martin Bashi And Cynthia Mcfadden In New York City, this is Nightline If you’re looking for a certain pair of shoes, there’s a warehouse in Kentucky That probably has them. They’ve got a thousand brands in just about every Style, size and color Four million pairs of shoes 24 hours a day they’re boxing them up and shipping them out To shoe shoppers sitting in the comfort of home. Good morning and thank you for calling Zappos.com Where Elvis once was spotted in our warehouse looking for a pair of blue Suede shoes This is Zappos.com and what Amazon
did for books Zappos is doing for shoes. They’re trying to revolutionize how business is done And how people work. The name is an adaptation of the Spanish word for shoe And this year, nine years after going into business Zappos is on track to sell a billion dollars’ worth of shoes You will have these shoes on Monday by free upgrade yeah And they’re having a party doing it. One night it was a toga party Work hard, play hard Is everybody having a good time?
Yeah Tour the Zappos offices and there’s a cheerfulness you won’t find In the dull offices of corporate America Hi, everybody. Thanks for coming Every department has its own way of greeting visitors Zappos’ headquarter is in Las Vegas, where they do have office carol like almost Any other corporation But right there in the middle, we may have missed him There he is. Tony Hsieh, the emperor of shoes With no more office space than Dilbert. One of the things that’s really important for us Actually probably the most important
focus for Zappos is to make sure we have The absolute best company culture And part of our culture is just having a family like atmosphere And at times it looks like
one of those Internet startups that disappeared when the bubble burst Go!
Here’s the entire finance department racing Pine wood derby cars in the office but
unlike those failed startups Last year Zappos made a five percent
profit. Not bad And in multiples how many times more
than a call center worker do you make? I don’t have a calculator, but I… My salary is $36,000 dollars a year, so… I think someone may make more than me Some of the people in the call center make more?
Yeah Of course, he can afford it Just a few years after college, Hsieh sold the Internet company to Microsoft for $265 million dollars But you wouldn’t know it How many pairs of shoes do you have? I probably have about 10 pairs right now But prior to Zappos, I used to have one pair that I would wear for two years until it has holes in it And then buy the same pair again So you are not that into shoes
I’m not that into shoes What he’s into is building a company where People love to work and customer like doing business We would just want to be about the very
best customer service and the very best Customer experience Selling shoes over the internet would seem difficult People wanna try them on, see the size and color. Zappos overcame that with Free shipping, both ways.
Order as many shoes as you like You have a year, 365 days To return what you don’t want.
Okay and then once we get it back in And it can take 48 hours to process back in But we will refund you for the $41 dollars And if they treat the customers well They do pretty well by the employees, too.
Free food is always available in the cafeteria So even the snacks are free Go E5 And here we go I’m enjoying it But that’s nothing. The company also pays 100% the medical and dental benefits Why in this world there’s such a revolutionary idea to treat your employees and your customers well? Yeah, I think just because you don’t
really see the payoff right away You see the payoff year two
years sometimes three years down the line It’s a great day here at Zappos.
This is Stephanie. How can I help you? At the heart of the Zappos’ revolution is the call center Where actual human beings answer the phone.
Hi, pal, how are you doing? A lot of companies have learned that
they can be rude to their customers They can give them bad service
They can even not answer the telephone And people still have to do business with them And right today that’s because they don’t really have a choice How can I help you today?
95% of Zappos’ business comes over the Internet But they spend a lot of time and money Training people to talk to customers on the phone There’s a four-week training course that
every single employee From the executives on down are required to take, even if their job don’t usually require talking with customers I’ll be happy to help you with that
Do you know that you know your order number? You don’t know your order number. OK, no problem Do you have a phone number that would be on your account? Sari Levine already works in the design department But she was a member of the latest call center class And just before they were hired She and the rest were offered cash to walk away We are actually increasing the offer to $2,000 dollars But today is the last day Were you gonna…The truth is… We offer them money to quit because we really want to make sure that People that are working at Zappos are
truly passionate about the company And this is the place that they want to be Very few take it
Are you ready to get started? For the graduates business ceremony And circumstance, diplomas, the Zappos pledge I’m on a Zappos mission to live and deliver WOW I’m on a Zappos mission to live and deliver WOW I’m with core values and gonna start now
I’m with core values and gonna start now They actually do have a list of 10 core values Create fun and a little weirdness It’s just a fun way of saying that we really respects and celebrate everyone’s individuality Pursue growth and learning
Do a lot of people tend to get kinda stuck? I think it’s just really important for people to feel engaged They always need to feel like they’re learning and growing I noticed immediately coming in At a graduation ceremony people smiling
and laughing and clapping and making jokes But you were very reserved Yeah, and that’s part of what I mean. When I say, I’m not the one that is Saying okay here’s what the culture should be Why isn’t your phone center in India? Because we don’t think you’re gonna be able to give Great customer service by outsourcing it And for us, customers…if customer service
is what our brand is going to be about Then you can’t outsource that
If a customer is looking for A specific pair of shoes and we’re out of stock their size, say Everyone here is trained to look on at least three competitor web sites And they find the shoes in stock of our
competitor, direct the customer to the competitor And that…
What do you get out of that? Somebody else sells the shoes
Yeah, we lose that sale What they get they think is customer loyalty 75% of their businesses is people who come back And part of their training is exposing
employees to every part of the business Remember Sari Levine? After finishing her training at the call
center she’s now shipping shoes in Kentucky And your last number should be 3184 Part of the training program we call it KY boot camp We got our Kentucky Fulfillment Center And you do understand Every single aspect of how the warehouse works Now Zappos is branching in the things like clothing and electronics They’re not stuck on shoes And so we’ll listen to our customers and try out different suggestions They even suggested cookware, so we’re selling cookware So you just have customers who like you so much They just want to do business with you Almost no matter what it is they’re buying Yeah, we have received emails from customers that have asked us to Start an airline and you know we’re not
gonna do that this year But thirty years now I wouldn’t rule out
as a Zappos Airlines In that case you probably have to pay for shipping This is Brian Rooney for Nightline in Las Vegas Music

79 Comments

  1. A SECOND CHANCE AROUND said:

    i have loved all the shoes i have purchased from zappos.
    i do love shoes…lol
    maybe i should work there..lol

    **KISSES**

    August 15, 2008
    Reply
  2. tsal said:

    I worked for them for a while, and yes, it really is that great to work for them. 🙂

    Sounds like you might be in the Kentucky area – they do have a warehouse near Louisville.

    September 11, 2008
    Reply
  3. TanisterATL said:

    Man. I wish you guys were based in SF. I'd TOTALLY work there. My kinda work environment. Instead, I'm stuck working for the State of CA. 🙁

    December 12, 2008
    Reply
  4. Thien Tran said:

    Love this video. About time an online company decides to spend most of their money on customer service. Not outsourcing also help create jobs too.

    December 21, 2008
    Reply
  5. Bob Hazlett said:

    Now I understand why my friends buy 4 pairs at a time. Amazing, wish more companies had this philosophy.

    February 17, 2009
    Reply
  6. Joyce Schwarz said:

    See Zappos in person when you register and attend the Internet Merchants Association Conference March 17 & 18.

    March 4, 2009
    Reply
  7. emptystare said:

    Astounding!!!! WHY cant I find a company like that to work at locally. Work SHOULD be fun as long as you get your job done; not limited to person, place or fences.

    March 8, 2009
    Reply
  8. Joyce Schwarz said:

    Tour Zappos when you attend IMA on March 17 & 18 & hear Aaron Magness speak @ keynote

    March 9, 2009
    Reply
  9. worldsavy said:

    Sigh… compare this CEO with the CEOs on wall street. Big difference.

    April 16, 2009
    Reply
  10. Martin Mihal said:

    Great Company. Great Vision.

    Its amazing that Big Companies don't realize that in today's cold world….all we want is to talk to someone on the other line with an once of respect and dare I say friendliness.

    Any company that utilizes this revolutionary NEW concept in their business plan, will grow in success despite any type of economy.

    People Over Profits. Ive been saying it for years, simple formula, here's proof it works.

    Kudos.

    May 2, 2009
    Reply
  11. mramos4131 said:

    Amazing. I like this guy's way of thinking. If you treat the employee right then it's just a positive chain reaction all the way down to your customers. More companies need to take part in this type of business philanthropy. 5 stars.

    May 8, 2009
    Reply
  12. deliriumconquers said:

    Inspiring! Hats off to you.

    May 11, 2009
    Reply
  13. NappyChronicles said:

    I LOVE Zappos… this is where I buy my children's shoes from that everyone always compliment (you always buy the cutest shoes, where do you get them from)… Not to mention the lightening fast delivery. How in the world can I order a pair of shoes at 10 pm and they're at my doorstep the next morning??? !!! I'm lovin the work atmosphere. Glad to know I buy from a GREAT company.

    June 4, 2009
    Reply
  14. Disney Vasquez said:

    That reporter is annoying!

    June 8, 2009
    Reply
  15. Zappos.com said:

    try making sure that the audio on youtube is not muted.

    June 16, 2009
    Reply
  16. mszsu said:

    Zappos is SO awesome. I'm really impressed with the CEO and all the employees. Out of all the online stores I've dealt with, Zappos has THE best customer service. Thanks! 🙂

    July 1, 2009
    Reply
  17. Joel Holmberg said:

    5:47, i bet you'd feel pretty stupid if u took the money

    July 8, 2009
    Reply
  18. Jamie Shipp said:

    Have you applied yet?! 😀

    July 30, 2009
    Reply
  19. atlrocafella said:

    I'm so MAd I found out about zappos after purchasing my polo sneakers from the mall!! Zappos you know have a lifelong customer..FREE SHIPPING? THats unheard of!!

    August 23, 2009
    Reply
  20. deadmonikor said:

    I've been a Zappos customer for years. Definitely one of my top 20 sites on the web.

    August 24, 2009
    Reply
  21. ez4me2sa said:

    I've been ordering shoes for years from Zappos – they have the BEST customer service. However, the one thing I noticed about this call center was that there were not many older people, ie., 40 – 50's. So many need jobs right now due to outsourcing. Anyway, kudos to Zappos – keep up the good work.

    September 19, 2009
    Reply
  22. Jean Quad VanDamme said:

    you guys get 5 stars for customer care and shipping

    November 12, 2009
    Reply
  23. shellysstuff said:

    I've been in customer service for over 8 yrs. At the company that I'm at now, one manager actually made a "no laughing" rule…I kid you not. And my boss is always yelling at the whole team for 1 person's mistake. I'd love to work for Zappos.

    June 6, 2010
    Reply
  24. SoulMusicians said:

    I don't get it does he really makes $36000?

    June 21, 2010
    Reply
  25. Inside Zappos said:

    @SoulMusicians That's what his paycheck from Zappos.com, Inc is.

    June 21, 2010
    Reply
  26. SoulMusicians said:

    @insidezappos But since he owns the company or CEO of the company shouldn't his paycheck be much more then that. How does this work?

    June 21, 2010
    Reply
  27. Justin Riray said:

    Dude… this company is amazing…. I want to work for them

    July 19, 2010
    Reply
  28. soilofk said:

    Awesome company!!!!! the CEO is a fantastic person!!! I bought shoes there from Canada….and I am sooooo happy with their service!!!!

    November 14, 2010
    Reply
  29. terminator800tlgm said:

    I bet somewhere in the free shipping and 365 days return, there is a cost factor into the total price for the statistics of the products that actually ended up being returned. In a way, every buyer pay for a small amount of insurance for the products that ended up being returned.

    December 14, 2010
    Reply
  30. souleaterjh said:

    @roidz17 Well actually if you read his book "Delivering Happiness" he most likely had not much of that cash left to collect any interest. He spent it on keeping Zappos alive in the early years (what he had left after selling a party loft he bought anyways.)

    February 5, 2011
    Reply
  31. souleaterjh said:

    @roidz17 His share was about $32 million from that deal. Although I agree that's still a lot, it's much smaller than 200 million

    February 10, 2011
    Reply
  32. bweise84 said:

    @ddelay08 'cause you watch video

    April 4, 2011
    Reply
  33. bweise84 said:

    @ddelay08 'cause you watch video

    April 4, 2011
    Reply
  34. Johnny Tram said:

    @terminator800tlgm It is. They do not offer coupon nor have the cheapest shoes. They even stated at their website. But they do strive for the best customer service to keep their customer happy.

    April 12, 2011
    Reply
  35. Kooly1 said:

    This is the best company ever created. I'd buy anything they sold. lol

    April 23, 2011
    Reply
  36. Christina Yee said:

    Zappos inspires me to live my life to the fullest! 🙂

    June 29, 2011
    Reply
  37. Saleh said:

    Nothing I hate more than the videos they include with their products. LOL it just sounds soooo fake.

    July 9, 2011
    Reply
  38. Anne D said:

    His parents must be proud.

    August 12, 2011
    Reply
  39. otraxo said:

    @ddelay08 <—- Dumb Ass.

    August 18, 2011
    Reply
  40. Moon Dawntrader said:

    I work for a pretty awesome company. Maybe not as GREAT as this one, but they are nipping on their heels. I have worked in call centers since 1999. I have worked in 6 different call centers since. And the one that I am at now is the BEST of the BEST. They treat us with dignity and respect. They care about us. And the support us fully. I am not just another person doing their bidding. I am very lucky to work where I do, and I thank god for it everyday.

    October 20, 2011
    Reply
  41. Dave Smith said:

    kind of cultish. but that's okay.

    November 1, 2011
    Reply
  42. Nahum Eikenberry said:

    My mom bought a Puma shoes from zappos. I love Puma. and also ASICS!

    December 7, 2011
    Reply
  43. Swiftyroo said:

    I want to work in a fun office.

    December 13, 2011
    Reply
  44. brilliantfranz said:

    they don't produce the shoes do they? but the box says Zappos

    do they actually throw away the box the shoes originally comes in?

    January 31, 2012
    Reply
  45. B. said:

    I would love to wake up for work every morning if I worked there.

    March 8, 2012
    Reply
  46. Micah Slaton said:

    Zappos is great. I highly recommend it

    March 27, 2012
    Reply
  47. ATLHooligan said:

    I;m in the second round on the interview process to work here….I WANT IT SOOO BAD

    April 20, 2012
    Reply
  48. secularheathen said:

    I start work at the KY fulfillment center on Monday.

    June 24, 2012
    Reply
  49. Veronica Turtle Heart said:

    You had me ready to drop out too, until I looked more closely. I checked out the job openings on the about.zappos.com site. Actually, it looks like I'd need to stay in college, and even then I'd better make sure I'm also achieving some additional work experience and specialized skills besides my university degree.

    October 5, 2012
    Reply
  50. sam said:

    "In that case, you'd probably have to pay for shipping."

    October 27, 2012
    Reply
  51. 3089280288 said:

    Seems like an inefficient way to try on shoes

    December 24, 2012
    Reply
  52. juniwilliamsqoqo said:

    Who takes the 2000 dollars seriously

    February 28, 2013
    Reply
  53. Kommaseir said:

    Someone who gets paid minimum wage.

    March 13, 2013
    Reply
  54. Kommaseir said:

    Thank god people like you don't start businesses. This business grossed a Billion dollars in shoe sales based on what you think as being inefficient. Thanks.

    March 13, 2013
    Reply
  55. 3089280288 said:

    What God are you thanking? You speculate too much out of ignorance. I happen to have shoes to sell face to face. I buy my shoes in person at much lower prices. Have you seen their prices? It's people like you who want to patronize such websites.

    March 13, 2013
    Reply
  56. Kommaseir said:

    I speculate too much out of ignorance? What part is speculation and ignorance? The fact they have sold over a billion dollars of shoes? Also, what shoes do you carry? I guarantee it doesn't touch the selection on Zappos. Rather than driving to your store and seeing your selection, I'll go to zappos and read reviews, compare other brands, etc. And yes, it's people like me that want to patronize such websites – and here's a little secret: there's millions more and it's only growing.

    March 14, 2013
    Reply
  57. 3089280288 said:

    You assume I didn't start a business which I did do. I'm setting up myself for success & don't have time to focus on the likes of you. I study other firms to decide my business model. With that, think what ever you want & move on.

    March 14, 2013
    Reply
  58. Kommaseir said:

    Fine by me. So you know, many of the most successful businesses in the world come visit Zappos' headquarters and partake in their culture tours so they can learn from them and set themselves up for greater success. And with that, I'll move on when ever the fuck I want.

    March 17, 2013
    Reply
  59. Fanio George said:

    100% dental and medical fee and free meal cost some money.

    May 3, 2013
    Reply
  60. M. A. Anderson said:

    Watched this Friday at a work Customer Service Professional Development session. Brilliant!

    May 26, 2013
    Reply
  61. Frank Belief said:

    I would want to work at a company like this after I graduate. It would be so fun! My question is, is it really like this everyday?

    June 3, 2013
    Reply
  62. Savina Zúñiga said:

    Good job zappos =)

    July 9, 2013
    Reply
  63. rap1800 said:

    sooooo did ya do it?

    July 15, 2013
    Reply
  64. happybob26 said:

    really hopeful in the future of business
    worth watching

    July 25, 2013
    Reply
  65. Kangaroo Jack said:

    Now I know where to buy my shoes.

    August 22, 2013
    Reply
  66. Keeley Dineen said:

    Oh My WOW!!
    I would Love to work here! This guy really knows what's up. Keeping your employee's happy (I too believe) will also help keep your customers happy.
    I love being a Zappos customer… and if I were to ever relocate, I would relocate near a Zappos so that I could apply to work there. 🙂
    Thanks Zappos; keep up the great work!!

    October 13, 2013
    Reply
  67. phirephate said:

    Awesome company. These guys and Costco are showing that you don't need to pay people slave wages and treat everyone as expendable to make a profit. 

    May 15, 2014
    Reply
  68. bottle2lip said:

    i know a couple friends who work there in the call center..making decent money..fixing to try and get on board..once i record my video to upload to them as part of the interview process

    September 12, 2014
    Reply
  69. 777Skeptic said:

    There's no way he makes only $36k, that's probably just his income from being a phone guy.  I do hope this is the next revolution in the workplace environment though.

    January 22, 2015
    Reply
  70. Rachel Hammitt said:

    Wow, that's really different! kinda awesome….

    September 2, 2016
    Reply
  71. Dana Stout said:

    More companies could take a lesson from your corporate policies, culture, customer satisfaction. Your short YouTube clip made me want to shop with your company in the future. Keep up the excellent work!

    January 15, 2017
    Reply
  72. Nathalie said:

    Can I work here? I actually have some call center experience!

    February 19, 2017
    Reply
  73. Hypatia4242 said:

    I prefer buying from companies that care about their employees. Company spirit really has a multiplier effect; happy workers have more energy for their families, their neighborhoods, and volunteering.

    March 19, 2017
    Reply
  74. Jesse M said:

    Anyone else watching this outdated video for a college business/marketing class?

    April 9, 2017
    Reply
  75. Dr. Kenken said:

    fuck me…my professor keeps showing us VHS videos :I

    September 4, 2017
    Reply
  76. It's not what you think said:

    Boy, it's surprising what someone can do with a startup when you have 250 million dollars. Truly inspiring.

    July 1, 2018
    Reply
  77. Smug Smugly said:

    This production is over 12 years old. The industry has gone through severe financial turbulence over this period of time.

    February 20, 2019
    Reply
  78. Smug Smugly said:

    Crammed in a cattle car on his way to a concentration camp, this guy discovered a way to break out.

    July 12, 2019
    Reply

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