Does Amazon Own Zappos? (2023)

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An American-based shoe and clothing retailer headquartered in Las Vegas, NV, a state in the United States. Is it included in the Amazon family? Does Amazon own Zappos? This question might be raised in your head. As Amazon is overtaking many companies, people are very curious about this. This article deals with Zappos ownership. Does it belong to Amazon?

Does Amazon Own Zappos?

Yes, Amazon owns Zappos. This acquisition was signed in the year 2009. This deal was signed for $1.2 billion at that time. Amazon bought all the outstanding shares and stocks. 

Amazon Company;

Amazon has acquired a company with a buyer sales approach. It offers a varied product range and inventory. This wide selective range enables consumers to buy anything they need. This inventory includes 

  • Clothing, 
  • Beauty supplies, 
  • Gourmet food, 
  • Jewellery, 
  • Books, 
  • Movies, 
  • electronics, 
  • Pet supplies, 
  • Furniture, 
  • Toys, 
  • Garden supplies and
  • Household goods and more.

Zappos Origin

Zappos was founded in 1999 by its founder Nick Swinmurn with its partners, Tony Hsieh and Alfred Lin. This company brought its website to shoesite.com. In 2000, this company was invested again by Venture Frogs. 

Zappos Acquisition by Amazon 

In the year 2009, Amazon announced that it owned Zappos. This deal was formulated and signed in the same year. This deal was signed in a stock and cash deal of $940 million. Owners of Zappos were set to receive $10 million, while employees would receive $40 million in cash and restricted stock units. The deal was altogether signed for $1.2 billion in 2009.

Why did Amazon buy Zappos?

Both companies share similar beginnings. Although Amazon’s development was much more significant as compared to Zappos. But Amazon thought to buy it because it saw significant potential in the company. Amazon has recognized Zappos as a customer-based company, and both will promote each other. At that time, the yearly revenue for Zappos was $2 billion. Zappos was owned by Amazon in 2009. Many customers who shop from its website still need to be discovered. 

Does Amazon own other companies?

Yes, there is a large list of those companies owned by Amazon. It is continuously acquiring different companies to furnish itself in different areas. Originally this company started as a book-selling store, and now it has reached a point where it is worth $1.75 trillion. Many other large and small businesses are owned by the giant Amazon. Let’s have a look at some of the companies acquired by Amazon. Amazon owns many subsidiaries, including 

  • Amazon Web Services,
  • Audible,
  • Diapers.com,
  • Goodreads, 
  • IMDb was owned in 1998
  • Kiva Systems (now Amazon Robotics), 
  • Shopbop, 
  • TeachStreet, 
  • Twitch, 
  • Zappos is one of them, and 
  • Zoox.
  • Book Pages were owned in 1998 for worth $55,000,000.
  • Telebook was Owned in the year 1998 for worth $55,000,000
  • IMDb was bought for worth $55,000,000
  • Junglee was incorporated in 1998 for $250,000,000
  • PlanetAll was taken for $280,000,000
  • A partnership of LiveBid.com with Amazon was signed in 1999.
  • The incorporation of Accept.com was signed in 1999 for worth $101,700,000
  • Alexa Internet was owned by Amazon for $250,000,000
  • E-Niche is incorporated with Amazon.
  • Convergence Corporation was owned by Amazon for $23,000,000.
  • Tool Crib of the North (Online and Catalog Sales Division) is also owned by Amazon.

How much does Zappos earn?

As of 2015, Zappos has been earning a revenue of $2 billion. More than 1500 employees are working with this company. Zappos had net revenue of $635, out of which it earned $10.7 in the last year. This was an improvement over 2007, before its acquisition by Amazon. In 2017 it attained $1.8 million on $527 million of net sales. Zappos has been making an 8.4% year-over-year growth in sales. Although it is difficult to estimate the net worth earned by Hsieh and Lin. As there is no evidence of the fact that how much Venture Frogs shares go into their pockets. Hsieh made at least $214 million, Lin made at least $18 million, and the Venture Frogs shares made an additional $163 million. 

What products does Zappos sell?

Zappos has a slogan, “To live and deliver wow”.Many high-quality items are being sold at the store. Best customer service and the best company culture are witnessed in all stores. Initially, it started as a shoe store, and now it has been selling

  • Clothing, 
  • Handbags, 
  • Accessories,

Conclusion;

Amazon-owned Zappos in the year 2009. This deal was signed between both parties to enhance both companies’ cultures. They have been promoting each other business. Amazon puts inventory of Zappos on its website for sale. Many other companies are owned by Amazon.

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