Nike will stop selling its shoes and apparel through the Amazon website after its two-year partnership ended. The company will now focus on direct sales to consumers through its in-house platforms and stores. A statement reveals that the decision is part of a new retail strategy, to obtain better margins and control its image.
“As part of Nike’s focus on elevating consumer experiences through more direct, personal relationships, we have decided to complete our current pilot with Amazon Retail.” Read a statement from the company. “We will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly service our consumers globally.”
Nike’s departure from Amazon does not come as a surprise. In the past, the shoe company continuously raised concerns over unauthorized sellers and counterfeits on Amazon. In 2017, the company offered to provide products directly to Amazon at wholesale in exchange for crackdowns on fake items. While the crackdown gave short term results, counterfeit sellers quickly resurfaced in different names.
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Nike did not break up with Amazon alone. As part of the Triple Double Strategy, the company will forfeit retailers who do not differentiate Nike products from everything else in the stores.
Will Other Brands Follow Nike?
Nike’s sheer size allows the giant to sacrifice Amazon’s reach for premium pricing and undiluted authenticity. However, very few brands can afford such a luxury.
“Nike has enormous reach, and its products are in demand. Therefore, it can afford to be selective about where its products are available.” An analyst told Bloomberg.
Nevertheless, the exit allows other labels to sell on the Amazon site. Additionally, Amazon anticipated the move and has been recruiting third-party sellers to avail Nike brands on the site.
Henceforth, Nike will push for sales through its website and its apps, hosted under Amazon Web Services.
