It is quite evident that great customer services at Zappos increases costs such as free same day shipping, extensive employee training, and other expenses. In order to offset these costs, the company can reduce costs of operation in other areas such as reducing the cost of two-way shipping. The company has to make sure that it provides a drop shipping. A drop shipping means that after a customer has requested for a pair of shoes online, the company would then request the customer to go and pick the shoes at the closest warehouse of the company. This method reduces the after services costs (Abrams, 2012). On top of that, Zappos Company reduces other costs of operation such as the recruiting, hiring, and training costs. The company makes sure that it saves a bigger percentage of these costs as compared to the 150 percent of the world shoes industry by not limiting call centers. Unlike other call centers, calls to Zappos are not timed neither do the call center workers have to meet the minimum sales goals. In the end, all of these calls are paid off with a lower turnover. In addition, …show more content…
This is true because offshoring its call center means that the company moves its operational activities to another country or place where it has a branch. For example, if the Zappos Company has another branch in another country, it will use the off-shoring technique to recruit workers and employees to work at the customer's centers from that country (Perschel, 2010). This technique will assist the company to save taxation costs as well as expenses of transportation of employees from one country to another. Offshoring will also reduce the cost of hiring new workers because labor in many countries is cheap. The only disadvantage that the Zappos Company will incur in offshoring its customer call centers is the cost of training new employees in another different place to be competent