Do Not Advertise, American Chinese Sell Shoes Online For 600 Million

It is a magic weapon to refuse to pay for advertising and return free products. Nowadays, online stores are hot, but few people seem to choose to buy shoes online.

However, Xie Jiahua, a Chinese American, set up a shoe selling net, Zappos.

With free return service, it has become the largest Internet Marketing Company in the United States.

Xie Jiahua, a 32 year old businessman, is one of Zappos.com's founders and chief executive of the Internet marketing giant.

Both his father Xie Chuangang and his mother Li Xiaolin are from Taiwan, China.

Parents moved from Taiwan to the United States in their early years, and later gave birth to Xie Jiahua in Illinois. Jia Hua was the oldest among the three brothers.

According to his father, Jia Hua was quick and independent from childhood.

Xie Jiahua's childhood was smooth sailing.

He grew up in San Francisco and became a computer major at Harvard University. He got his diploma when he was 19 years old.

During Harvard, Jiahua not only won the champion of computer contest, but also hired a bedroom to open pizza shop in his spare time. Although the business in the shop was normal, he accumulated the first business experience.

When he was 21 years old, he gave up his chance to read and entered a company as a programmer with his roommate Singe Madan.

This makes friends very puzzled, but Xie Jiahua thinks he has a unique vision.

It wasn't long before Jia Hua and Ma Dan created LinkExchange, an online advertising company.

The company developed into a large company with 200 employees in only two years.

In 1998, LinkExchange sold Microsoft at a price of US $265 million.

From this, Xie Jiahua dug up the first barrel of gold.

In the early years of selling shoes, Xie Jiahua almost broke into 1999 years. By chance, he met Nick Swaim, a younger entrepreneur than himself.

SW proposed an idea that other investors never thought of: selling shoes online.

Swaim said footwear retail has a market of US $40 billion, of which 5%, or $2 billion, is mailed by looking at the order catalogue.

At that moment, Xie Jiahua was suddenly "enlighten".

So Xie Jiahua went to Sam's online shoe sales company, ShoeSite, which was the predecessor of Zappos, and injected $1 million into it.

6 months later, two people began to run Zappos together.

But Zappos did not sell anything at that time.

The two people only spend a day discussing how to make the brand, and finalize the development direction of providing the best service.

"Every day we thought we could go bankrupt until we borrowed the highest amount of $6 million from the rich bank."

No one can imagine that an online shoe selling empire was born.

In 2000, Zappos's performance reached US $1 million 600 thousand, and in 2001 it was US $8 million 600 thousand. After that, it increased by 30 million, 80 million and 100 million.

Now, according to the CNN survey, Zappos accounts for 1/5 in the $3 billion online shoe sales market. Last year, its performance exceeded 600 million dollars and customers 4 million.

Xie Jiahua's most frequent saying is "I don't want to spend money on advertising. I prefer to spend it on improving customer service."

Zappos pursues the purpose of "shoes suitable for wear, not suitable for change". Although it is not the first online store offering free return service, Xie Jiahua has made this service a magic weapon for Zappos to break out of tight encirclement: only one night, the goods can be delivered to the guests; if they are not satisfied, they can enjoy free returns.

To this end, the pport cost of Zappos alone last year cost US $100 million.

In fact, Zappos only turned into a deficit last year.

Xie Jiahua said that this is a strategy to retain long-term customers.

Statistics show that 60% of Zappos customers are repeat customers, and 25% of them are friends or family members.

2004 bought shoes for himself every month. In January of January, the expanded Zappos decided to move to Las Vegas.

"I started talking with Sam at lunch and finished cling to it."

Xie Jiahua said with ease.

In fact, Xie Jiahua and Swaim often make important decisions in an hour or a day.

Xie Jiahua's customer service is a concept that has always been pursued by the company.

After all, service quality is the foundation of Zappos.

Zappos has also increased supplies for leather bags, gloves and sunglasses, because he believes there is still more room for Internet marketing.

In the field of shoes, he has the confidence to occupy the 1/10 market of the United States.

Besides business, he will not be unfair to himself.

He buys himself a pair of new shoes every month, which is also a contribution to Zappos.