Zappos: Drop Shipping Business Success Story
Posted on June 28, 2012 by Lola Rotimi-Sosanya
Zappos: Drop Shipping Business Success Story
Zappos is a well known website that simply started as a drop ship business selling shoes. Now, it is a highly profitable company that has moved on from the drop shipping business model and now personally handles the sale of shoes, accessories, clothing, and home goods. Zappos is a prime example of a business that used drop shipping to
Founder of Zappos - Tony Hsieh
kick-start a well-known company that is now worth billions of dollars.
Zappos began as a small website that only sold shoes. In the beginning, they decided to use the drop ship model because it was a great way to create working relationships with a plethora of companies without having to worry about the risk of purchasing inventory outright. When using the drop ship business model, Zappos became a popular website, especially for women looking for cute, affordable footwear.
However, a few years later, Zappos decided to take a risk and transition their website from the drop shipping system to a more personalized business model. One of the downsides of using the drop ship system is that the company cannot control the customer service provided as the product is inspected and shipped by a warehouse. Zappos wanted to be known for their great customer service and also planned to expand their business by offering products other than shoes. It was a risk, but it definitely was worth it. Zappos continues to be an extremely popular website and has defined itself as an easy-to-use website that offers great customer service. This is truly a distinguishing factor that has helped mold this business into a wildly popular website that is worth billions of dollars.
As shown through Zappos’ success, the drop ship business model is a great way to establish your business. There is limited liability and risk involved, so little money is needed to start the business under the drop ship model. When the website becomes more successful, it is easy to transition it into a more traditional business model and start to handle all sales personally. The drop ship business model is a great option for those who want to start a sales website without having to take a huge risk. If you follow in the footsteps of Zappos, there is no limit to the success that your business may have.
I am an internet entrepreneur and the founder and owner of Lola Ro Jewelry at www.lolarojewelry.com. I am a big optimist and an individual who never gives up. I have found that running a business can be challenging and rewarding. Follow me as you learn from other entrepreneurs and tips on how to run a small business. 
Very interesting post!
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