Zappos.com vs Endless.com

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Presentation transcript:

Zappos.com vs Endless.com First Mover vs. Follower Kellan Falconieri

History of Zappos.com- First Mover - Launched in 1999 with a $500,000 investment under the domain name Shoesite.com - In 2000, its first year, Zappos.com brought in $1.6 in revenue. Followed by $8.6 million in revenue in 2001, mostly achieved with just word of mouth advertising. - In 2003 Zappos.com ditched the "drop-shipping" method in order to provide better customer service and control there inventory. - Launched in 1999 by Nick Swinmurn. - Sells shoes and other accessories. - The largest online shoe store. - Bought in 2008 by Amazon.com for an estimated $1.2 billion - Revenue is over $1billion annually. - Over 1500 employees

Zappos- Business Model -The Zappos.com business model is based on relationship marketing ( which focuses on customer retention and great customer service). - Over 75% of Zappos.com customer are repeat buyers. - Word of mouth advertising and recommendations. - Zappos.com

History of Endless.com - Follower -Created in 2006 by Amazon.com - Offers free shipping, free returns, and price guarantee. - Affiliate program - 15-30 employees - Yearly revenue of $500,000 - Endless.com

Zappos.com vs. Endless.com - Zappos.com has a much larger customer base than Endless.com - Both offer free shipping and 365 day return policy. - Endless.com offers a 100% price match guarantee while Zappos.com does not. - Zappos.com is much more well known. - Both are know owned by Amazon.com - Zappos.com has much larger selection. - Zappos.com has expanded to selling clothes and accessories, Endless.com just sells shoes and accessories.

First-Mover (Zappos.com) vs. Follower (Endless.com) -Zappos.com, started in 1999, is the leading online shoe store. - Endless.com is widely unknown. - Zappos.com has over $1 billion in revenue a year. -Endless.com has revenue of $500,000 - Zappos.com has advantage over Endless.com because its been in business longer.- More experience. - Zappos.com has customer loyalty - Hard for follower (Endless.com) to gain customers.