The news of Zappos.com being acquired by Amazon was bigger than just another merger and acquisition.  It will have meaningful implications to the online consumer product business for years as it combines the two most successful pure plays to come out of the dot-com era.  It is also interesting because the brands and the business models they chose could not be more different in any way.

The question I keep asking and now pose to the audience as well…is this a good thing or a bad thing?

A bad thing:

• Sad to see this independent and very unique culture become part of a public company…we can only hope Amazon understands the premium they paid is only justified if they don’t mess with what made Zappos special.
• Even though these are extraordinary economic times, Tony and the Zappos ownership could easily be perceived as sell outs…giving away the vision they preached to the very competitor they targeted to outdo.
• One less online competitor to keep the playing field fair.

A good thing:

• A win for exceptional customer service…Zappos hallmark.
• A win for modern company culture.  That makes us feel better…our happy hours, free form office space and dogs are not so crazy after all.
• It demonstrates optimism that the economy will improve and that consumer spending on apparel and footwear in the online environment still has significant growth potential.

What do you think?  Good, bad or don’t really care…