Zappos' retiring alpaca-loving CEO went from selling pizzas in his Harvard dorm to leading the shoe company he sold to Amazon for $1.2 billion

Barbara SmithAug 27, 2020, 23:05 IST

FilmMagic/Getty Images

Tony Hsieh, a Harvard grad, went from selling pizza out of his dorm room to becoming the CEO of Zappos.
In his first year at the company, Zappos went from almost nothing in sales to $1.6 million.
Hsieh moved Zappos headquarters to Las Vegas, Nevada and began an initiative to make the city another Silicon Valley.
Now, he's retiring after more than 20 years at the company, which is owned by Amazon.

On Monday, Zappos CEO Tony Hsieh (pronounced Shay) announced his retirement from the company after 20 years.

There was no specific reason given for Hsieh's retirement in an email sent out by COO Kedar Deshpande, who will be stepping into the CEO role.

During his tenure leading the company, Hsieh moved the company's headquarters from San Francisco to Las Vegas as part of a larger effort to make Vegas the new Silicon Valley. While the full scope of his vision hasn't panned out, he made a name for himself in the business community and brought noteworthy attractions to the city, including Container Park and the 'Life is Beautiful' music festival.

The former CEO also made headlines when he created 'Llamapolis', a mini community where Hsieh lives with his two alpacas.

From selling pizza in his dorm room to seeing Zappos acquired by Amazon, here's what you need to know about Hsieh's career rise.

While little is known about Hsieh's early life, he was born in 1973 and grew up in the San Francisco Bay Area.

San Francisco, CA, where Hsieh was raised. Jane Tyska/Digital First Media/East Bay Times/Getty Images

Hsieh attended Harvard, where he sold pizza out of his dorm room with some friends.

The campus of Harvard Business School and Harvard University, July 26, 2016 in Boston, Massachusetts. Brooks Kraft/Corbis via Getty Images

His first business venture after graduating was LinkExchange, which he sold to Microsoft in 1998 for $265 million.

Hsieh responds to questions at the 2015 WSJD Live on October 20, 2015 in Laguna Beach, California. FREDERIC J. BROWN/AFP via Getty Images

After the sale, Hsieh and his friend Alfred Lin were investing money into "20 or so" companies, including one company that would eventually become Zappos.

Hsieh speaking at the Clinton Global Initiative America at the Sheridan Downtown Denver, June 25, 2014 Andy Cross / The Denver Post via Getty Images

A year later, another entrepreneur by the name of Nick Swinmurn left Hsieh a voicemail telling him about ShoeSite.com (which would later be renamed Zappos.) Hsieh, still uncertain about the venture, joined the company and invested $500,000.

Hsieh speaks onstage at CinemaCon’s final day luncheon and special presentation. Charley Gallay/Getty Images for CinemaCon

A year later, another entrepreneur by the name of Nick Swinmurn left Hsieh a voicemail telling him about ShoeSite.com (which would later be renamed Zappos.) Hsieh, still uncertain about the venture, joined the company and invested $500,000.

As an investor and advisor for Zappos, Hsieh was able to help the company go from almost no sales in 1999 to $1.6 million in sales by 2000. In 2011, the company passed the threshold of $1 billion in sales.

Hsieh delivers a keynote presentation at the MAGIC clothing industry convention at the Las Vegas Convention Center February 17, 2010 in Las Vegas, Nevada Ethan Miller/Getty Images

As an investor and advisor for Zappos, Hsieh was able to help the company go from almost no sales in 1999 to $1.6 million in sales by 2000. In 2011, the company passed the threshold of $1 billion in sales.

In January of 2004, Hsieh and his team decided to move the company's headquarters from San Francisco to Henderson, Nevada. Hsieh said the moved was based on the lack of people who want to work in customer service in San Francisco.

Tony Hsieh speaks onstage during day 1 of the 2015 Life is Beautiful festival on September 25, 2015 in Las Vegas, Nevada. FilmMagic via Getty Images

In January of 2004, Hsieh and his team decided to move the company's headquarters from San Francisco to Henderson, Nevada. Hsieh said the moved was based on the lack of people who want to work in customer service in San Francisco.

In 2006, Swinmurn left Zappos, and Hsieh became CEO, placing emphasis on employee satisfaction.

Hsieh speaks at Cinema Con 2014. Charley Gallay/ Getty Images for CinemaCon

Hsieh moved the company toward Holacracy, meaning employees work in task-specific teams instead of each employee working on their own and then reporting to a manager.

Danny Moloshok/Reuters

One of Hsieh's most talked about employee perks is the "Pay to Quit" program, which gives employees a $1,000 quitting bonus if they feel like the company isn't the right fit after their first 4 months.

Ethan Miller/Getty

One of Hsieh's most talked about employee perks is the "Pay to Quit" program, which gives employees a $1,000 quitting bonus if they feel like the company isn't the right fit after their first 4 months.

In 2009, Amazon bought Zappos for $1.2 billion, after Hsieh said no in 2005.

Amazon logistics center in Lauwin-Planque Reuters

In 2013, Zappos bought the old Las Vegas City Hall and Hsieh moved his team to this new location. The new location is about 30 minutes from the new strip and just a stone's throw away from Fremont Street.

Zappos headquarters in Las Vegas, Nevada. Jason Ogulnik/For The Washington Post via Getty Images

In 2013, Zappos bought the old Las Vegas City Hall and Hsieh moved his team to this new location. The new location is about 30 minutes from the new strip and just a stone's throw away from Fremont Street.

This move was a part of a bigger initiative, Downtown Project, to make Las Vegas another Silicon Valley. Hsieh put $350 million into the project, which included real estate, restaurants, and other ventures.

The Treehouse play area at Downtown Container Park on Saturday, January 14, 2017 Jason Ogulnik/For The Washington Post via Getty Images

This move was a part of a bigger initiative, Downtown Project, to make Las Vegas another Silicon Valley. Hsieh put $350 million into the project, which included real estate, restaurants, and other ventures.

While the initiative garnered mixed results, it did bring some noteworthy attractions to the area, including the "Life is Beautiful" music festival and the Downtown Container Park.

At the entrance to Downtown Container Park a praying mantis structure by artist Kirk Jellum shoots fireballs from its antennason Saturday, January 14, 2017. Jason Ogulnik/For The Washington Post via Getty Images

While the initiative garnered mixed results, it did bring some noteworthy attractions to the area, including the "Life is Beautiful" music festival and the Downtown Container Park.

Hsieh also lives in the area, in a micro community called "Llamapolis", which is comprised of tiny houses and Airstream trailers.

A Llama crossing sign at The Container Park Las Vegas. Jason Ogulnik/For The Washington Post via Getty Images

Inspired by the artsy community found at Burning Man, Llamapolis is also home to Hsieh's two alpacas, Marley and Triton.

Melia Robinson/Business Insider

The retiring CEO has a net worth of about $840 million, but he previously told Business Insider that he lives in the tiny community because "[he] wanted to maximize serendipity and randomness in [his] life."

Zappos CEO Tony Hsieh sits at his desk in the company's Las Vegas headquarters. Richard Feloni/Business Insider

The retiring CEO has a net worth of about $840 million, but he previously told Business Insider that he lives in the tiny community because "[he] wanted to maximize serendipity and randomness in [his] life."

Hsieh hasn't detailed his plans for what he'll be doing in retirement, but we know at least one thing for sure: His alpacas must be happy at the extra attention.

Tony Hsieh and one of his pet alpacas stand in front of Zappos' downtown Las Vegas headquarters. Zappos

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Zappos' retiring alpaca-loving CEO went from selling pizzas in his Harvard dorm to leading the shoe company he sold to Amazon for $1.2 billion

While little is known about Hsieh's early life, he was born in 1973 and grew up in the San Francisco Bay Area.

Hsieh attended Harvard, where he sold pizza out of his dorm room with some friends.

His first business venture after graduating was LinkExchange, which he sold to Microsoft in 1998 for $265 million.

After the sale, Hsieh and his friend Alfred Lin were investing money into "20 or so" companies, including one company that would eventually become Zappos.

A year later, another entrepreneur by the name of Nick Swinmurn left Hsieh a voicemail telling him about ShoeSite.com (which would later be renamed Zappos.) Hsieh, still uncertain about the venture, joined the company and invested $500,000.

As an investor and advisor for Zappos, Hsieh was able to help the company go from almost no sales in 1999 to $1.6 million in sales by 2000. In 2011, the company passed the threshold of $1 billion in sales.

In January of 2004, Hsieh and his team decided to move the company's headquarters from San Francisco to Henderson, Nevada. Hsieh said the moved was based on the lack of people who want to work in customer service in San Francisco.

In 2006, Swinmurn left Zappos, and Hsieh became CEO, placing emphasis on employee satisfaction.

Hsieh moved the company toward Holacracy, meaning employees work in task-specific teams instead of each employee working on their own and then reporting to a manager.

One of Hsieh's most talked about employee perks is the "Pay to Quit" program, which gives employees a $1,000 quitting bonus if they feel like the company isn't the right fit after their first 4 months.

In 2009, Amazon bought Zappos for $1.2 billion, after Hsieh said no in 2005.

In 2013, Zappos bought the old Las Vegas City Hall and Hsieh moved his team to this new location. The new location is about 30 minutes from the new strip and just a stone's throw away from Fremont Street.

This move was a part of a bigger initiative, Downtown Project, to make Las Vegas another Silicon Valley. Hsieh put $350 million into the project, which included real estate, restaurants, and other ventures.

While the initiative garnered mixed results, it did bring some noteworthy attractions to the area, including the "Life is Beautiful" music festival and the Downtown Container Park.

Hsieh also lives in the area, in a micro community called "Llamapolis", which is comprised of tiny houses and Airstream trailers.

Inspired by the artsy community found at Burning Man, Llamapolis is also home to Hsieh's two alpacas, Marley and Triton.

The retiring CEO has a net worth of about $840 million, but he previously told Business Insider that he lives in the tiny community because "[he] wanted to maximize serendipity and randomness in [his] life."

Hsieh hasn't detailed his plans for what he'll be doing in retirement, but we know at least one thing for sure: His alpacas must be happy at the extra attention.