Zappos drops price protection and overnight shipping

Zappos has decided that it wants to be known more for customer service than discount pricing. It is eliminating its free overnight shipping guarantee as well as a guarantee to refund 110% of the difference between its price and a lower competitor’s price.

If you are not familiar with Zappos, they sell shoes and other clothing and are one of the largest online retailers (#31 according to Internet Retailer ). They also own a few other sites such as 6pm.com which is more of a discount clothing store.

According to CEO Tony Hsieh, this policy change took place because the goal of Zappos is to be known more for customer service than low pricing.

I find this situation very interesting for several reasons.