In what's being reported as a "if you can't beat 'em, buy 'em" move, Amazon has announced an agreement to acquire Zappos.com, an online footwear and clothing retailer in the States.

Zappos, based out of headquarters in Las Vegas, apparently enjoys a good reputation in the US for customer service.

"Zappos is a customer focused company", said Jeff Bezos, founder and CEO of Amazon.com. "We see great opportunities for both companies to learn from each other and create even better experiences for our customers".

Under the agreement, Amazon will acquire Zappos for approximately 10 million shares of Amazon common stock, equal to around $807 million with a further $40 million going to Zappos employees.

The deal is expected to close in the autumn, at which point Zappos will continue to operate as an independent company.