1. Zappos: Delivering Happiness Clothing, Customer Service & Culture Alfred Lin – COO/CFO Twitter: @zappos_alfred March 5, 2009

5. Power of repeat customers and word of mouth...

6. Repeat Customer Data for Zappos.com % customers who buy again within next 12 months (repeat customers) avg # purchases by repeat customers over next 12 months % repeat customers multiplied by avg # purchases March 2001 20.4% 1.50 0.31 March 2002 27.0% 1.74 0.47 March 2003 33.5% 1.96 0.66 March 2004 44.6% 2.36 1.05 March 2005 51.0% 2.53 1.29 March 2006 51.3% 2.66 1.37 March 2007 54.3% 2.67 1.45

7. Zappos is about the 3 C’s: C lothing, C ustomer Service, C ulture C ustomer Service C lothing C ulture

8. Clothing: moving beyond shoes… Great selection of clothing delivered with great service

9. Zappos delivers happiness in a box: outfitting our customers from head to toe packaged with great customer service.