Zappos.com Case Study

Zappos.com Finds the Right Fit with Commission Junction

For online shoe retailer Zappos.com, developing a pay-for-performance advertising program has resulted in two years of increased sales generated by a growing network of publishers. Jack Kotowski, affiliate program manager for the popular shoe store, has found that quality publisher relationships are key, as well as partnering with a Web-based solution like Commission Junction that publishers trust.

	"With Commission Junction we got the online exposure we wanted and sold more product than we had ever anticipated." Jack Kotowski Affiliate Manager

Founded in June 1999, Zappos.com offers a selection of more than 100 brands of shoes, including Dr. Martens, Birkenstock, Clarks, Steve Madden, Ecco and New Balance. Zappos.com provides access to more than 30 million pairs of shoes and enjoys the highest ranking of any 'pure-play' footwear retailer online (Alexa Internet data 2003).

Selling shoes and shoe accessories predominantly through the Internet, it was crucial for Zappos.com to increase its online exposure. In addition to customer referrals and word-of-mouth, the company decided to explore the benefits of a pay-for-performance program. When Zappos.com joined the Commission Junction network in February 2000, it instantly gained access to the network's quality publishers.

"The results from our program have been amazing for both us and our publishers," said Kotowski. "We sell a substantial amount of merchandise through Commission Junction every day, and we are pleased with the results. It has proven to be cost effective and is definitely worth the time we dedicate to it."

Kotowski says the opportunity for the program's growth is nearly limitless, considering the total shoe market and Commission Junction's network. Zappos.com's shoe selection more than doubled last year and Kotowski anticipates it will double again in 2003, resulting in even more customers and higher conversions.

Zappos.com compensates its publishers on a cost-per-sale basis, paying out a 15 percent commission per sale. While many Commission Junction advertisers pay around 10 percent per sale, Zappos.com prefers paying its publishers a more generous commission rate as a way of rewarding the publishers who place Zappos.com ads on their sites.

"Our terrific growth is due in large part to working with and being responsive to our publishers," said Kotowski. "This is made easier because Commission Junction maintains its own strong ties to publishers in the network. I enjoy working closely with our publishers. It's a great feeling to see them succeed, and Commission Junction is a key part of that success".

Having thoroughly investigated other pay-for-performance networks, Kotowski knows that Commission Junction is a great solution for Zappos.com.

"With Commission Junction's ease of use, aggregated paycheck, customer service, and the additional benefit of easy integration, Commission Junction offers a tremendous return on investment for a pay-for-performance solution," said Kotowski. "I would definitely recommend Commission Junction to anyone looking to start a pay-for-performance advertising solution. With Commission Junction we got the online exposure we wanted and sold more product than we had ever anticipated."

Download Zappos.com case study PDF (78 Kb)