Zappos started as a garage startup competing against Foot Locker, which had massive venture funding and mall locations everywhere. Zappos won by using an "under-promise, over-deliver" strategy: set low expectations, then exceed them. That simple discipline built loyalty and beat the bigger player.
I don't know if you know the backstory of Zappos. When Zappos started their internet presence selling shoes, they had a major competitor coming into the industry that you probably all know called Foot Locker. Foot Locker had a presence in every mall in the country, was backed by venture capital, and had millions backing it. Zappos was a little startup out of a garage and had the same idea. Foot Locker said there's a huge opportunity on the internet, we're moving in. Zappos said there's an opportunity on the internet, we're gonna give it a shot. Millions, actually hundreds of millions backing this one, nothing backing this one, but Zappos won. How? Because they use a technique called UPoD, under-promise over-deliver.
