Amazon hopes to “create even better experiences for customers” following the acquisition of Zappos.com

Amazon.com has announced that it has acquired leading online footwear and apparel website, Zappos.com.

The deal looks set to be worth around $807 million (£490m), as Amazon will give Zappos approximately 10 million shares of Amazon common stock in exchange for the business. In addition to the shares, the company said it will give Zappos employees $40m in cash and restricted stock units.

Jeff Bezos, CEO and Founder of Amazon.com is excited about the opportunity the acquisition brings: “Zappos is a customer focused company. We see great opportunities for both companies to learn from each other and create even better experiences for our customers.”

Mr Bezos’ tribute to the web retailer is echoed by fans across the internet who praise the site for its free delivery deal and excellent customer service. In Fortune Magazine’s highly regarded “Top 100 Best Companies to Work For” list, Zappos was the highest ranking newcomer.

Tony Hsieh, CEO of Zappos, said: “We are joining forces with Amazon because there is a huge opportunity to utilise each other’s strengths and move even faster towards our vision of delivering happiness to customers, employees and vendors.”

He went on to say: “We will continue to build the Zappos brand and culture in our own unique way, and we believe Amazon is the best partner to help us do this over the long term.”

In the statement released by Amazon, the company said the management structure of Zappos would remain, as would its headquarters, which are based in Las Vegas.

The share price of the web retailer dropped slightly just as it is set to announce its second quarter results.

Amazon’s announcement, comes as auction site eBay unveils a fall in profits for the last quarter of 29%. Earlier in the month the British Retail Consortium (BRC) said that online sales were enjoying continued success according to the latest Retail Price Index.