Blog: Amazon grows its footprint
Leonie Barrie | 23 July 2009
Back in 2007 when it launched Endless.com, a website specifically selling handbags and shoes, online retail giant Amazon seemed to be firmly modelling the site on market leader Zappos.com whose focus on customer service – including the promise of free shipping, even on returns – has garnered it a huge and loyal following.
"…with our free overnight shipping, free return shipping, 110% price guarantee, and 365-day returns window, we offer our customers a no-risk opportunity to try us out," Endless said at the time.
But perhaps they didn’t.
The underlying assumption from Amazon’s decision yesterday (22 July) to buy arch-rival Zappos in a in a deal worth nearly US$850m is that it is still struggling to expand its footprint in the key apparel and footwear market.
And this is despite operating Endless.com and stocking thousands of footwear and apparel brands on its namesake site, including Adidas, Levi’s, DKNY and Wrangler. It also allows ‘featured stores’ like Macy’s, Lands’ End and Target to showcase their items too.
While there is some overlap with Zappos, whose more than 1,000 brands range from Michael Kors, and Stuart Weitzman to Just Cavalli, Amazon says it will continue to run the retailer as a separate entity.
But their combined reach will immediately propel Amazon pole position in the sector. And Amazon will no doubt be hoping that economies of scale will help to lift profit margins too, by using its extensive distribution network to reduce Zappos’ shipping costs.
Few corporate deals have met with such unanimous praise as Amazon’s recently announced acquisition of online footwear retailer Zappos for about US$900m. Richard Woodard looks at why the deal has been ...
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...
Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....
- Trump and the apparel industry – Infographic
- How US border adjustment tax could affect apparel
- British Brexit plans prioritise tariff-free trade
- Apparel factory auditing is in the firing line
- NRF 2017 – Retail tech launches and developments
- Cambodia clothing exports at risk from Brexit
- New project to digitalise European fashion chains
- Brands need to tackle Turkey factory refugee abuse
- Apparel brands urge Bangladesh PM to address wages
- JC Penney to roll out hundreds of Nike "shops"
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Anti-odour clothing: fresh fashion for an active lifestyle
- Global apparel markets: product developments and innovations, October 2016
- Global market review of lingerie – forecasts to 2022