Zappos, 1999
How did Zappos prove people would buy shoes online?
The short answer
Before buying any stock, founder Nick Swinmurn photographed shoes in local shops, listed them online, and bought each pair at full price when an order came in. The orders proved demand. Amazon bought Zappos in 2009 for about $1.2 billion.
The situation
You think people will buy shoes on the internet. Everyone says nobody buys shoes without trying them on. You have no stock and no money to buy any.
The options on the table
- Raise money for a warehouse and launch properly
- Survey friends on whether they'd buy shoes online
- Photograph shoes in local shops, post them online, and buy them at full price whenever someone ordersWhat they did
- Sign one shoe brand first and sell only their range
What happened
Nick Swinmurn photographed shoes in local shops and posted them online. When an order came in, he went back, paid full price and shipped them himself. It proved people would buy. Amazon bought Zappos in 2009 for about $1.2 billion.
Sources: Alexander Jarvis
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