Women’s Wear Daily
04.17.2014
business
business

Pricing Mistake Costs Zappos $1.6M

Sister site 6pm.com honored all purchases made during a snafu.

business/news

Zappos.com created a lot of buzz this weekend, due to a pricing mistake on sister site 6pm.com.

From midnight to 6 a.m. Friday, the majority of items listed on the site — which typically sells products at discounts of up to 70 percent off — had a price cap of $49.95. The problem was eventually corrected, but the company still suffered a loss of more than $1.6 million in sales during that six-hour time frame, according to a blog posting by Aaron Magness, director of brand marketing and business development for Zappos.

His apology and correction notice, posted Friday, said, “It was our mistake. We will be honoring all purchases that took place on 6pm.com during our mess up. ... Let’s just say this was not a boring weekend for us.”

Zappos CEO Tony Hsieh commented on the mistake on Twitter, stating, “I guess that means no ice cream for me tonight.”

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