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Online Retailer Makes Million-Dollar Pricing Mistake

Ever wondered what would happen if you accidentally marked almost all of your online products with the same pricetag no matter the original cost? That's what happened with, and the mistake has now cost the online retailer a huge wad of money. Apparently someone in the merchandising team set most of the prices at $49.99. The problem is that many products originally retailed for $1,000.

"When we figured out the mistake was happening, we had to shut down the site for a bit until we got the pricing problem fixed," said Aaron Magness, director of brand marketing and business development for parent company Zappos Development. "While we’re sure this was a great deal for customers, it was inadvertent, and we took a big loss selling so many items so far under cost."

Ultimately the company lost over $1.6 million from the pricing mistake, and has vowed to honor all purchases that took place within the time frame of the erroneous pricing. "We apologize to anyone that was confused and/or frustrated during out little hiccup, and thank you all for being such great customers," Magness added. There was no indication that the one responsible for the pricing error still had a job.

"Shop. Save. Smile," reads the company's logo. No doubt plenty of customers were smiling over the weekend.

Kevin started taking PCs apart in the 90s when Quake was on the way and his PC lacked the required components. Since then, he’s loved all things PC-related and cool gadgets ranging from the New Nintendo 3DS to Android tablets. He is currently a contributor at Digital Trends, writing about everything from computers to how-to content on Windows and Macs to reviews of the latest laptops from HP, Dell, Lenovo, and more. 

  • bv90andy
    "We apologize to anyone that was confused and/or frustrated"

    sarcasm, much?
  • marraco
    If true, at least this publicity money as being given to the public :)
  • phoenix777
    kudos on honoring the sales
  • Marco925
    Most retailers would fight and cancel all the orders

    To honour those orders? What good customer service!
  • zoemayne
    they didnt loose that much its just publicity i never even heard about this retailer
  • alextheawesome
    How do you "accidentally" punch in $50 instead of $1,000?
  • alextheawesome
    How do you "accidentally" enter in $50 instead of $1,000?
  • dwave
    Just because you have never heard of them doesn't mean they couldn't have lost that much money.
  • haunted one
    I'm certainly impressed with the decision to honor the sales.

    And I wish I'd known about this before hand. ;)
  • 2 billion penguins
    You just know someone either got fired over this (or got given a promotion if the publicity worked that well)