Nike to Stop Selling Merchandise on Amazon
Nike will stop selling merchandise directly to Amazon.com as part of its push to sell more directly to consumers, reports CNBC. The athletic apparel and footwear retailer will end the pilot program it started with Amazon in 2017, in which Nike agreed to sell a limited product assortment to Amazon in exchange for stricter policing of counterfeits and restrictions on unsanctioned sales of its products. The news comes on the heels of Nike's decision to hire John Donahoe, former eBay CEO, as its next CEO. A Nike spokeswoman told CNBC in an emailed statement, “we will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly serve our consumers globally.” At this point, that doesn't include Amazon.
Total Retail's Take: As Nike's decision illustrates, many brands are eschewing online marketplaces in favor of selling their products direct to consumer on their own websites. Nike was always resistant to selling on Amazon, and only agreed to the pilot program in 2017 with stringent requirements for the e-commerce giant. The sports retailer is betting on its strong brand image and loyal customer base to compensate for any lost revenue from its decision to stop selling its products on Amazon. Nike's primary competitors, including Under Armour and Adidas, do sell their merchandise on Amazon, so it will be interesting to see if this move impacts their current strategies.
Kristina Stidham is the digital content manager at Total Retail and sister brand Women in Retail Leadership Circle. She is passionate about digital media and handles social media, video, and podcast production for both brands, as well as contributing articles and attending events. Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia.