Zappos: Delivering Shoes, Profits, and Happiness

31 07 2011

I’ve done it. You probably have too…bought a pair of shoes from Zappos.com. In 1999 buying a pair of shoes online seemed like a C-RAZY idea. Really? Internet entrepreneur Tony Hsieh and a few of his friends (and to-be colleagues), thought it would work, came up with the name Zappos, and started forming the company. Ten years later Amazon bought Zappos “in a deal valued at over $1.2 billion on the day of closing,” per Zappos CEO Tony Hsieh in his excellent book Delivering Happiness: A Path to Profits, Passion, and Purpose. Just how do you go from zero to over $1 billion in annual gross merchandise sales…and of SHOES (not big ticket items)…in just ten years?

Tony’s journey was not for the lazy, weak-willed, doubting, or uncommitted. Many times the company came to the brink of collapse and he kept it afloat by infusing it with some of the considerable money he got from the sale of his previous company…banner ad network LinkExchange…when it was sold to Microsoft in 1998 for $265 million. And as that money ran out, he sold his own personal real estate.

Tony and his colleagues made the decision in 2003 to make the Zappos brand be about the very best customer service possible. This meant some big, bold decisions like carrying their own inventory so they could ship shoes faster and more accurately. They decided not to outsource customer service overseas, even though that would’ve been cheaper, and they relocated their headquarters to Las Vegas. Tony emailed all employees in 2004 to ask them to contribute 100-500 words about what the Zappos culture meant to them and since then, every year a new Zappos Culture Book is produced, which is given to prospective employees, vendors, and customers. They encouraged employees to anonymously submit questions and the answers are posted in their monthly employee newsletter Ask Anything.

Oh…and they got a $100 million credit line from Wells Fargo and two other banks. All of these changes meant they went from the brink of collapse to $1 billion in gross sales in 2008…two years ahead of their original (and seemingly impossible) goal of 2010.

Zappos succeeds by delivering happiness…to employees, vendors, and customers. They offer free shipping both ways…if a pair of shoes doesn’t fit or you don’t like it, ship it back for free. And oh, by the way, you have 365 days to return them. Their call center and warehouse are staffed and running 24 hours a day every day. Sometimes they surprise (i.e., delight) customers and ship shoes overnight (sometimes 8 hours after they order them) at no charge. I’ve actually experienced this…so cool!

The company culture and the brand are intertwined…one feeds the other and leads to a lot of really happy people. They are thoroughly committed to the ten company core values:

  1. Deliver WOW through service
  2. Embrace and drive change
  3. Create fun and a little weirdness
  4. Be adventurous, creative, and open-minded
  5. Pursue growth and learning
  6. Build open and honest relationships with communication
  7. Build a positive team and family spirit
  8. Do more with less
  9. Be passionate and determined
  10. Be humble

The Zappos mission became “To live and deliver WOW.” As a result of these values, the WOW mission, and the incredible results that Zappos was achieving, Tony Hsieh started to be in demand as a speaker. In 2007 he started studying the science of happiness. He found that happiness is evolutionary.

Tony Hsieh - Credit: DeliveringHappiness.com

The lowest level of happiness is all about chasing pleasure. The more evolved level of happiness is passion, which comes through flow and engagement. And the most evolved type of happiness is higher purpose, which is about being part of something bigger than yourself. The Zappos mission evolved to “Zappos is about delivering happiness to the world.

Tony wrote the Delivering Happiness book in 2009. It debuted in 2010 at #1 on the New York Times Bestseller List and stayed on that list for 27 consecutive weeks. There is now a Delivering Happiness movement, with information at www.deliveringhappiness.com. A Delivering Happiness bus has toured the nation and the CEO of Delivering Happiness Jenn Lim is also called the Chief Happiness Officer. In January 2010, a couple of months after the deal with Amazon closed, Zappos was ranked #15 in Fortune magazine’s annual “Best Companies to Work For” list.

Tony Shieh in action is an incredible example of conscious capitalism, which seeks to enhance corporate profits and also (and perhaps through the) advance the quality of life for people. He leaves you with these thoughts, which are his guiding principles in life:

What would happen if everyone in the world acted in the same way? What would the world look like? What would the net effect be on the overall happiness in the world?

He challenges us all to choose to “…be a part of a movement to help make the world a happier and better place.” WILL YOU MAKE THAT CHOICE?



Here’s Tony talking about his journey:





Hip-Hop, Yoga, and Being Super Rich

30 07 2011

Think of the “godfather of hip-hop” Russell Simmons and you definitely think RICH. He founded the music label Def Jam as well as clothing lines such as Phat Farm and American Classics. With a net worth estimate of $340 million, he is the third richest figure in hip-hop, only behind artists Diddy and Jay-Z. But do you also think of yoga and spirituality when you think of Russell Simmons?

Simmons is the author (along with Chris Morrow) of Super Rich: A Guide to Having it All. His business website www.rushcommunications.com relates his many business successes, which “have spanned music, film, television, fashion, video games, online and financial services” and his activism, which “has encompassed all of the areas touched by his businesses, including poverty, education, social justice and inclusion.”

It’s easy to daydream about being incredibly rich, but Simmons is more than just about having a lot of money. He grew up in a lower-middle class African-American community in Queens and recently was named one of the 25 most influential people of the last 25 years by USA Today. He has two beautiful daughters he adores (and a beautiful, well-known, and accomplished ex-wife Kimora Lee Simmons). Not only does he practice yoga, meditation, and philanthropy, he also eats no meat. He believes that there is a connection between his spiritual practices and his worldly success.

The title of his book Super Rich might make you think it’s all about accumulating money, but to Simmons that term means “the state of needing nothing.” That’s powerful! THE STATE OF NEEDING NOTHING. Imagine being in that state. Surely, you’d feel super rich. But how do you achieve that state? Simmons says that we have to “clear out the clutter and quiet the noise” that keeps us from “hearing” or connecting with the happiness…or the richness…that is already inside of us.

He says that we attract the world to us by giving until the world can’t live without what you have to offer. Huh? To get rich, you just give away what you have? YES! He quotes yogis: “You never lose what you have given” and says that if you “just show the world a fraction of the sweetness and honesty that’s in your heart, it’s going to come running after you.”

What else can you do to attain the STATE OF NEEDING NOTHING?

  • Access stillness…that “quiet, peaceful mental state that allows you to be completely present in life.” Then you can become “totally connected with the inspiration and imagination that’s inside [you].”
  • “Stay focused on your work without any expectations for, or concern with, the fruit of your labor” and “operate out of a zone of pure focus and clarity” like Michael Jordan did on the basketball court.
  • Be a business yogi and “only do shit you believe in. Period!” Vegan Simmons, for example, says he would never invest in a restaurant that serves meat. If you are a yogi, you won’t do work that creates instability or suffering in the world. Let go of the results…and watch what happens!
  • “Be reborn every day.” Simmons went from being a drug dealer to a mega-rich businessman, yogi, author (he previously penned the New York Times best seller Do You!: 12 Laws to Access the Power in You to Achieve Happiness and Success), and humanitarian. How did he do that? He “began moving away from [his] unconscious state and toward enlightenment.” He says it is important to “get open”…to be fluid and creative and never rigid.
  • Build bridges…with people of other races, religions, beliefs, etc…that will bring people together. Recognize that we are all connected.
  • Practice and realize the power of acceptance and love of others and what is.
  • Enjoy and be grateful for the material things, but don’t become burdened by or attached to what you have. Instead, achieve balance in life.
  • “Make a real commitment to being conscious and compassionate.”  He quotes the story of the Bhagavad Gita and Arjuna’s final words to Lord Krishna: “Through your kind conversation, I’ve woken up and am conscious of who I really am.” Simmons says that even if you fall short in all the above things, if you are conscious and compassionate, you will…like Arjuna…become more awake, which is “central to all your success.”

Simmons says that, armed with the knowledge in the book, we can be like Arjuna and:

To fight not for what you can get for yourself, but what you can give to others.

To fight not for your own abundance, but for the abundance of others.

To fight not for your own security, but for the peace and safety of others.

To fight not for your own joy, but for the happiness of others.

To fight not for your own upliftment, but for the enlightenment of others.

Russell Simmons, hip-hop, fashion, and multi-business mogul, yogi, father, UN Goodwill Ambassador, vegan, and philanthropist, ends the book by saying:

When you are devoted to fighting for these things with a smile on your face and love radiating out of your heart, then all these things will be yours. You will have it all. You will be Super Rich.

How refreshing to see someone who truly is super rich in every way practice what he says. Thanks, Russell Simmons.

NOTE: This post also appears at http://project-prosperity.com/2011/07/30/hip-hop-yoga-and-being-super-rich.