Zappos Screws Up Pricing And Sells Products At $1.6 Million Below Cost...Then honours The Sales!

Tony HsiehTony Hsieh, Zappos CEO

More long-term thinking–and great customer service–from Zappos (which is presumably also smart enough to understand that this isn’t a bad piece of marketing):

Hey everyone – As many of you may know (and I’m sure a lot of you do not), is our sister site. is where brandaholics go for their guilt free daily fix of the brands they crave.  Every day, the site highlights discounts on products ranging up to 70% off.  Well, this morning, we made a big mistake in our pricing engine that capped everything on the site at $49.95.  The mistake started at midnight and went until around 6:00am pst.  When we figured out the mistake was happening, we had to shut down the site for a bit until we got the pricing problem fixed. 

While we’re sure this was a great deal for customers, it was inadvertent, and we took a big loss (over $1.6 million – ouch) selling so many items so far under cost.  However, it was our mistake.  We will be honouring all purchases that took place on during our mess up.  We apologise to anyone that was confused and/or frustrated during out little hiccup and thank you all for being such great customers.  We hope you continue to Shop. Save. Smile. at 


Aaron Magness

Director of Brand Marketing & Business Development

Zappos Development, Inc.

Thanks to @jeffjarvis for bringing this to our attention.

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