Managing
The Zappos Way of Managing
How Tony Hsieh uses relentless innovation, stellar customer service, and a staff of believers to make Zappos.com an e-commerce juggernaut -- and one of the most blissed-out businesses in America.
By Max Chafkin | May 1, 2009
"What would make you happier in your life?"
Tony Hsieh asks me this question as we sit at a booth with half a dozen young people in one of those absurdly lavish lounges that can be found only in Las Vegas. It's called Lavo, setting of recent Paris Hilton and Nelly sightings and the city's newest hot spot. The theme is an ancient Roman bathhouse, and so, in addition to the normal nightclub features -- thumping bass, low tables, dim lighting -- there's the distracting aspect of two scantily clad women performing a risqué bathing routine, complete with damp sponges and music.
It's a strange setting for an interview -- especially for an interview with Hsieh (pronounced Shay). He's a thoughtful, low-key fellow who seems out of place in such a louche setting. Indeed, he seems oddly oblivious to his surroundings, which makes sense, given that he runs what is arguably the decade's most innovative start-up, Zappos.com. Hsieh helped start Zappos in 1999 as an online shoe store, and the company has since expanded to all manner of goods. Zappos booked $1 billion in gross sales in 2008, 20 percent better than the year before. It has been profitable since 2006.
At a time when most business leaders are retrenching, Hsieh is thinking big. In late 2006, he launched an outsourcing program to handle selling, customer service, and shipping for other companies, and last December, he started an educational website for small businesses that charges them $39.95 a month to tap Zappos executives for advice. Hsieh has said Zappos will eventually move beyond retail to businesses such as hotels and banking -- anything where customer service is paramount. "I wouldn't rule out a Zappos airline that's just about the best customer
How Tony Hsieh uses relentless innovation, stellar customer service, and a staff of believers to make Zappos.com an e-commerce juggernaut -- and one of the most blissed-out businesses in America.
By Max Chafkin | May 1, 2009
"What would make you happier in your life?"
Tony Hsieh asks me this question as we sit at a booth with half a dozen young people in one of those absurdly lavish lounges that can be found only in Las Vegas. It's called Lavo, setting of recent Paris Hilton and Nelly sightings and the city's newest hot spot. The theme is an ancient Roman bathhouse, and so, in addition to the normal nightclub features -- thumping bass, low tables, dim lighting -- there's the distracting aspect of two scantily clad women performing a risqué bathing routine, complete with damp sponges and music.
It's a strange setting for an interview -- especially for an interview with Hsieh (pronounced Shay). He's a thoughtful, low-key fellow who seems out of place in such a louche setting. Indeed, he seems oddly oblivious to his surroundings, which makes sense, given that he runs what is arguably the decade's most innovative start-up, Zappos.com. Hsieh helped start Zappos in 1999 as an online shoe store, and the company has since expanded to all manner of goods. Zappos booked $1 billion in gross sales in 2008, 20 percent better than the year before. It has been profitable since 2006.
At a time when most business leaders are retrenching, Hsieh is thinking big. In late 2006, he launched an outsourcing program to handle selling, customer service, and shipping for other companies, and last December, he started an educational website for small businesses that charges them $39.95 a month to tap Zappos executives for advice. Hsieh has said Zappos will eventually move beyond retail to businesses such as hotels and banking -- anything where customer service is paramount. "I wouldn't rule out a Zappos airline that's just about the best customer