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.
- Companies:
- Amazon.com
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
