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A note of gratitude for Tony Hsieh

I woke up early this morning and the first news I read was of Tony Hsieh’s passing last night. It hit me hard - he was only 46-years old. Tony was the long-time CEO of Zappos, only recently retiring in August.

Although I cannot say Tony was a close friend, he was an acquaintance that I had some good history with, most of it indirect. Zappos was one of the original pioneers of customer reviews, which Brant Barton and I decided to bring to the majority of the retail industry when we founded Bazaarvoice (literally named “the voice of the marketplace”) in 2005. Zappos was one of our early influences, with Amazon of course being our biggest (Amazon initially launched customer reviews in 1997, three years after their founding). I believe eBags had reviews even prior to Zappos (they were definitely an influence too), and Circuit City (kind of like a Best Buy that went out of business in 2009) had just launched them, paving the way for Brant and I to see that traditional, store-based retailers had a big need for us to fill.

In 2009, I was named Entrepreneur of the Year in Austin by E&Y. Tony had received the same Award for the Northern California region in 2007. My wife, Debra, and I were invited to the National Awards in Palm Springs. It was there that I connected with Tony, and we immediately connected on innovative company culture. We shared a lot of tips with each other, and it was clear that he was just as eager to learn as share.

The death - and rebirth - of retail

The death - and rebirth - of retail

On January 29, Marc Andreessen predicted the death of retail in favor of disruptive, pure-play etailers, such as Fab.com. A choice quote from the PandoDaily article:

“Retail chains are a fundamentally implausible economic structure if there’s a viable alternative,” he says. “You combine the fixed cost of real estate with inventory, and it puts every retailer in a highly leveraged position. Few can survive a decline of 20 to 30 percent in revenues. It just doesn’t make any sense for all this stuff to sit on shelves. There is fundamentally a better model.”

I've been studying retail ever since I can remember. My parents were retail entrepreneurs from the time I was born, as I wrote about in this Lucky7 post. I've been programming since I was seven-years old, as I wrote about in why I named this blog Lucky7 - in tribute to my mother. I leveraged these two experiences to start my own etailer in 1998 - programmed on an eCommerce platform that I created. And I've founded two large companies to help retailers - Bazaarvoice and Coremetrics. I've also served on the Board of Shop.org for three consecutive terms. So to say I've been thinking about this for awhile is an understatement.