Zappos - Team Building

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Company Summary Zappos.com is the world's largest online shoe store. Founded in 1999, Zappos was born out of the vision that 30% of all retail transactions in the U.S. will be online and consumers will buy from the company with the best service and the best selection (“About Zappos,” n.d.). The goal was to create a web site that offered the best brands, styles, colors, sizes, and widths of shoes. It has the world’s largest selection of shoes, and its service includes free returns. Seventy-five percent of its business comes from repeat customers, despite the fact that its prices are far from the lowest. Zappos’ primary selling base is shoes, which accounts for about 80% of its business. There are currently about 50,000 varieties of shoes sold in the Zappos store. They also serve the niche shoe markets, including narrow and wide lengths, hard-to-find sizes, American-made shoes, and vegan shoes. In 2007, Zappos expanded their inventory to include clothing, handbags, eyewear, watches, and kids’ merchandise which currently account for 20% of annual revenues. Rewarding Teamwork Zappos uses a reward currency called “zollars” that is redeemable for logo-identified merchandise from their company store (Hebert, 2010). Zollars are issued as reward incentives, such as clocking in on time or for completing specific tasks or projects. Every employee has the ability to give a cash bonus to any employee based on what they see as exemplary behavior in support of the company’s core values. Each employee gets $600 per year to distribute to fellow employees. They can distribute the amount in portions to various employees or reward it in a lump-sum to a single employee. Remarkably, employees do not abuse this reward system because out of fear that doing so will devalue the awards. To reinforce award integrity, they 1 have high standards for how an employee can earn a

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