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Hsieh was born to a Taiwanese American family in Urbana, Illinois. His parents were Richard and Judy Hsieh, immigrants from Taiwan who met in graduate school at the University of Illinois.

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His mother was a social worker, and his father a chemical engineer at Chevron Corp. Hsieh attended the Branson School. In , Hsieh graduated from Harvard University with a degree in computer science. In , Hsieh started developing the idea for an advertising network called LinkExchange with his college classmates Sanjay Madan and Ali Partovi.

They launched in March , with Hsieh as CEO, and found their first 30 clients by direct emailing webmasters. After LinkExchange sold to Microsoft, Hsieh co-founded and owned Venture Frogs, an incubator and investment firm, with his business partner, Alfred Lin. One of Hsieh's friends said she would invest everything if they chose "Venture Frogs" as the name, and the pair took her up on the bet, although they had not seen any money as of Without a precedent to guide him, Hsieh learned how to make customers feel comfortable shopping for shoes online.

Zappos offered free shipping and free returns, sometimes of several pairs. Hsieh rethought Zappos structure, and in it became for a time a holacracy without job titles, reflecting his belief in employees and their ability to self-organize. Hsieh loved the game of poker and moved Zappos headquarters to Henderson, Nevada , and eventually to downtown Las Vegas.

On July 22, , Amazon announced the acquisition of Zappos. Hsieh joined JetSuite's board in The investment allowed JetSuite to add two new Embraer Phenom jets which have two pilots, two engines and safety features equivalent to large commercial passenger jets but weigh less than 10, pounds 4, kg and are consequently highly fuel-efficient.