Zappos started as an online shoe store. Nick Swinmurn thought he would try selling shoes online. He set up a website called Shoesite.com and started visiting local shoe stores.
He went to Footwear Etc. in one of California's malls, and offered them he could buy their shoes and sell them online. They agreed, so he took some pics.
He asked friends and family for funding. He has collected $150,000 this way. He also took a job in Silicon Graphics to save more for his startup. He had problems with getting investors until his attorney told him about Tony Hseih from Venture Frogs. After some talking, Tony gave Nick $500,000. They changed the startup name to Zappos, and the startup moved to Venture Frogs' HQ.
Zappos didn't put much into marketing because mass ads weren't effective in their case. They focused on customer service. They offered free overnight shipping and free returns. Instead of gaining more and more new customers, they made sure to make the old ones stay with them. The customer-oriented approach provided Zappos with excellent word-of-mouth results.
