InternetRetailer.com - Zappos

"Shoe and handbag e-retailer Zappos.com Inc. in 2003 rung up $70 million in gross sales. In 2004, gross sales increased by 163% to $184 million. Last year they swelled 101% to $370 million. What next? Company executives are aiming this year for 62% growth�$600 million in sales.
The reason Zappos.com has been growing so well is the company�s focus on customer service, contends CEO Tony Hsieh. �Our focus is on providing the very best customer service and making sure we have that focus throughout the entire company, not just in our customer loyalty department,� Hsieh says. �Our growth primarily has come from repeat customers and word of mouth. Our revenue from repeat customers has increased such that on any given day more than 60% of our sales come from repeat customers. As long as we continue to focus on providing the best service, I believe we will have a good chance at hitting the 2006 target.�
The pure-play company, No. 45 in the Internet Retailer Top 400 Guide to Retail Web Sites, hit numerous milestones last year. These included: increasing its customer base to more than 3 million; securing additional equity financing from Sequoia Capital, which also has funded Yahoo!, Google and Paypal; growing its workforce from 500 to 700 individuals; and adding a new warehouse, the company reports. "