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  1. #1
    ABW Ambassador affninja's Avatar
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    Amazon to Acquire Zappos
    This big news just hit:

    Amazon.com to Acquire Zappos.com

    Wonder how it will play out with Associates / CJ / Endless / Zappos / 6pm ...
    Your Ad Here.

  2. #2
    15 years and counting
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    That's big news!

  3. #3
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    Letter from the Zappos CEO about it - http://blogs.zappos.com/ceoletter

  4. #4
    Analytics Dude Kevin's Avatar
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    Zappos has a high return rate. Amazon may send them back ;p
    Kevin Webster
    twitter: levelanalytics

    Kayak Fishing
    Web Analytics and Affiliate Marketing

  5. #5
    ABW Ambassador simcat's Avatar
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    Zappos dumped me cause i have a coupon site. Hopefully amz doesn't do the same...

  6. #6
    Affiliate Manager Matt McWilliams's Avatar
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    WOW! Was just reading it on Twitter: http://twitter.com/zappos/status/2784690201
    Matt McWilliams
    Call Me At: (317) 825-8826 | Follow Me On Twitter: @MattMcWilliams2 | Connect With Me On LinkedIn

  7. #7
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  8. #8
    Manager - Affiliate Marketing Patrick Vesperman's Avatar
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    love this Quote:

    "Over the next few days, you will probably read headlines that say "Amazon acquires Zappos" or "Zappos sells to Amazon". While those headlines are technically correct, they don't really properly convey the spirit of the transaction. (I personally would prefer the headline Zappos and Amazon sitting in a tree)"

  9. #9
    Merchant & ABW Ambassador
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    Really big acquisition..I doubt that there will be any big changes in the first 6 months.

  10. #10
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    two quotes:
    "Several months ago, they reached out to us and said they wanted to join forces with us"
    and...
    "Your job is just as secure as it was a month ago."

    He-he...

  11. #11
    notary sojac Herb ԿԬ's Avatar
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    Question
    Quote Originally Posted by simcat
    Zappos dumped me cause i have a coupon site. Hopefully amz doesn't do the same...
    I seem to remember AMZN dropping a lot of coupon or deal sites a while back. Or the sites were to promote only the products on a specific list.

  12. #12
    Moderator Nabz's Avatar
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    Amazon Acquires Zappos for $920 Million
    Amazon couldn't compete with Zappos with their Endless.com , so they decided to buy it.
    I am expecting some major changes in Zappos affiliate program soon.

  13. #13
    ABW Ambassador ladidah's Avatar
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  14. #14
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    OH - OH - I think I had better get the umemployment people to get ready for the Zappos folks showing up pretty soon.

    Lets see if this is a good deal for Amazon ... Zappos makes 3,000 sales per day or 90,000 per month ... the average sale is $100 ... $900K per day or $2.7 million per month or $32.4
    million/year. They paid 30 times annual sales. ACK in todays economy. Bezos shafts the
    Amazon shareholders again.

    Great deal for Zappos people who owned stock. After they buy their toys with the money,
    I wouldn't be surprised to see them start another Zappos.

    Here's a take you probably do not agree with but I think by 2012 Amazon & Ebay & Google
    will be just shadows of what they are now.

    Pay Pal will keep Ebay alive. Auctions will be flooded with products at below manufacturers cost ... profits will be gone, people will just be selling to stay alive.
    The number of buyers will drop as the job losses mount up.

    Google has a lot of cash, but they have NOTHING that anyone really needs to buy.

    Amazon can't be all things to all people even with one million affiliates who supposedly
    cannot buy stuff and get the commission. Eventually some rebater will clean their clock.

    I have bought Put Options on all three for December 2009 & 2010 ... might as well make
    some money on the come ... since I'd just be wasting it if I bought PPC clicks.

    When the commercial real estate fiasco hits the fan in September, we are all going to think we live in Darfur.

  15. #15
    Affiliate Manager AffiliateBuddha's Avatar
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    @net4biz: Zappos actually made about 1BN in sales last year - not 32.4 million. I'm pretty sure they do way more than 3000 sales a day. I thought the deal wasn't very good for zappos considering their numbers.
    Gift Shopping Zone Affiliate Program on SAS - 10% per sale with unlimited cookie duration, over 10,000 products.

  16. #16
    http and a telephoto
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    Merged the 2 Amazon/Zappos threads to keep the discussion all in one place and easier to track.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  17. #17
    ABW Ambassador
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    Quote Originally Posted by net4biz
    OH - OH - I think I had better get the umemployment people to get ready for the Zappos folks showing up pretty soon.

    Lets see if this is a good deal for Amazon ... Zappos makes 3,000 sales per day or 90,000 per month ... the average sale is $100 ... $900K per day or $2.7 million per month or $32.4
    million/year. They paid 30 times annual sales. ACK in todays economy. Bezos shafts the
    Amazon shareholders again.

    Great deal for Zappos people who owned stock. After they buy their toys with the money,
    I wouldn't be surprised to see them start another Zappos.

    Here's a take you probably do not agree with but I think by 2012 Amazon & Ebay & Google
    will be just shadows of what they are now.

    Pay Pal will keep Ebay alive. Auctions will be flooded with products at below manufacturers cost ... profits will be gone, people will just be selling to stay alive.
    The number of buyers will drop as the job losses mount up.

    Google has a lot of cash, but they have NOTHING that anyone really needs to buy.

    Amazon can't be all things to all people even with one million affiliates who supposedly
    cannot buy stuff and get the commission. Eventually some rebater will clean their clock.

    I have bought Put Options on all three for December 2009 & 2010 ... might as well make
    some money on the come ... since I'd just be wasting it if I bought PPC clicks.

    When the commercial real estate fiasco hits the fan in September, we are all going to think we live in Darfur.
    Zappos makes a lot more sales than that, from what I read somewhere between 800 million and 1 billion a year.

    To the bolded, nah. They'll be as strong as ever, most likely bigger.

    Whether or not an affiliate can get a commission from Amazon thru their own links (they can't) has no affect on how Amazon is doing. I still shop there, just bought a lawn mower the other day with free shipping, arriving 48 hours after I ordered it. And it was cheaper than the other places I checked out. They usually have the best prices. They're one of the few merchants that did well during the holidays while others struggled - http://www.nydailynews.com/money/200...ales_ever.html

  18. #18
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    Last time I was over at Zappos, the chalk board had the previous weeks sales up.
    High of 3250 or so, Low of 2975 or so ... the dollar value of each sale may be much
    higher than $100 ... Now that was before foray into apparel, so maybe they sell more
    but the margins are not that great.

    Amazon has a good brand ID ... it's easy to buy there ... but they have to make deals
    with all sorts of other merchants and that means they are not doing all that well on
    brokered sales ... if they pay their affiliates 7% for the sale, they are not making too
    much more than 12% if that ... Given the economy, the profits are getting squeezed.

    Amazon earnings come out tomorrow, I think ... should be mediocre but considering the
    opinion downgrades, it will probably come across as neutral to good. The stock is up
    to 93 from 76 in the last two weeks ... all the ear marks of a top are in place. Ditto EBAY.
    Lots of volume on EBAY today. A bit dismal on Amazon considering.

    We shall see.

  19. #19
    Outsourced Program Manager Angel Djambazov's Avatar
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    Zappos may have done 1 Billion in sales but they are hemorrhaging cash in part because of their shipping policies and in part because of their merchandise buying tactics.

    From my perspective, based on my Onlineshoes days, Nabz was right it was Endless' failure that spurred Amazon to buy. Posted an article about from the shoe industry perspective on here .
    Angel Djambazov
    Managing Edtior ReveNews
    OPM for Keen Shoes and Graphicly.com

  20. #20
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    Quote Originally Posted by Angel Djambazov
    Zappos may have done 1 Billion in sales but they are hemorrhaging cash in part because of their shipping policies and in part because of their merchandise buying tactics.
    It's my understanding that Zappos hasn't raised any new rounds of equity recently. If their operations are hemorrhaging cash, how are they financing it?

    My take (with no insider info) is that they have been running somewhere around break even for a couple years. That's their public stance (from what zappos has released about their financials) and seems to fit with the fundraising history.

  21. #21
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    Amazon earnings beat the street by a penny, but the topline was not good and the internals show mega margin problems ... the earnings came out right after the market closed and Amazon stocked dropped $2/share in a heartbeat.

    I am happy for the people at Zappos ... they get some Amazon stock ... which they
    will be selling faster than superman flies and they still get a paycheck - at least for
    awhile. The deal might not be so good for Zappos affiliates though.

    Zappos has some real interesting ideas about how to run a company ... actually it is
    a good model that many other companies might want to consider.

  22. #22
    The Seal of Aproval rematt's Avatar
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    Quote Originally Posted by net4biz
    Zappos has some real interesting ideas about how to run a company ... actually it is
    a good model that many other companies might want to consider.
    According to this link in Angel's article, many already have.

    Zappos Launches Insights Service

    Over the past few years, executives from dozens of companies, including Southwest Airlines and Best Buy, as well as ordinary customers, have made the trek to see its operations up close. The tour has undeniable Zappos touches: each department has its own greeting, and in-house motivational guru Dr. Vik has visitors sit in a throne for a Polaroid snapshot.
    -rematt
    "I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant." - Richard Nixon

  23. #23
    ABW Ambassador affninja's Avatar
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    Nice write up, Angel.

    Zappos, in spite of their often expensive customer satisfaction methods (or perhaps because of them), has been profitable since 2006. Source
    Your Ad Here.

  24. #24
    ABW Ambassador affninja's Avatar
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    Just got this note through CJ regarding the Zappos program going forward:

    Hey everyone,

    As you may or may not know, yesterday our board approved an agreement in which all of our existing shareholders and investors of Zappos will be exchanging their Zappos stock for Amazon stock. Once the exchange is done, Amazon will become the only shareholder of Zappos stock.

    Our brand will continue to be separate from the Amazon brand and we plan to continue to run Zappos as an independent entity. Therefore, at this point in time, we do not have any plans to make changes to the affiliate program. We are going to proceed forward with the same program structure and the same terms and conditions.

    Ive attached a link on the Zappos website that provides further background regarding the acquisition.

    http://www.zappos.com/ceoletter

    Please let us know if you have any questions.


    Thank you for your time,


    Zappos Associates Marketing Team
    Your Ad Here.

  25. #25
    Moderator BurgerBoy's Avatar
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    Amazon Buys Zappos
    More information about it here. http://www.zappos.com/ceoletter

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