Zappos’ pre-tax net profit is in the low single digit range – 3-4%. For the independent SEO’s reading this , you’d be better off working in house on margins like that. For the veteran e-commerce players, you know that this is not a good long term business model. Net Sales of $635 million in 2008. If quoted gross sales of a billion are accurate, then the return rate is more than thirty percent, pretty typical for footwear, but crippling to a profit and loss statement. Through various sites it was made abundantly clear that Amazon consumed Zappos to increase their market share, the merger did not significantly increase their profit margin. Through their P&L’s, Zappos has proven over the years to spend a significant amount on advertising which is usually a positive; however, due to their limited profit margin this can also prove to be a negative