Nike has announced that it customers will no longer be able to purchase ”Nike shoes and clothing” on Amazon, ending a pilot program that actually started in 2017. The decision follows as part of Nike’s rearrangement of its marketing and retail strategy, which includes hiring eBay former executive John Donahoe as its next CEO.
“As part of Nike’s focus on elevating consumer experiences through more direct, personal relationships, we have made the decision to complete our current pilot with Amazon Retail,” Nike said in a statement they sent to Bloomberg.
While on the pilot program, Amazon bought sneakers and apparel directly through Amazon, instead of buying them through third parties. The intention was to ease concerns among other companies about third-party re-sellers that were sullying their brands with fake merchandise.
Amazon was reportedly developing a registry of vetted vendors, and Nike would make a big splash as the first approved brand.
It’s clear that Nike thought partnering with Amazon would give it control over third-party sellers and potential counterfeit goods. However, as many companies have found on Amazon, clearing third-party sellers is a game of wack-a-mole, with a new vendor popping up every now and then for each one removed.
”As part of Nike’s focus on elevating consumer experiences through more direct, personal relationships, we have made the decision to complete our current pilot with Amazon Retail. We will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly serve our consumers globally.”
Amazon has apparently been planning for the break, concurring to Bloomberg, by building up a system of third part dealers so you can in any case purchase Nike shoes on the site. Simultaneously, Nike will keep on utilizing Amazon’s AWS web administrations.
Nike has essentially ventured into direct web based, significantly increasing deals around there since 2013. Be that as it may, retail still makes up around 68 percent of its business, and the company has attempted to make that increasingly comprehensive and tech friendly with the SNKRS application, collection point, vending machines and the sky is the limit from there. By contracting a previous eBay CEO, notwithstanding, it could push considerably into online deals.
In the mean time, Nike’s departure could be a blow for Amazon, which has been slammed recently for selling fake and even hazardous products. It has for the most part kept a hands-off approach and let brands police the issue, however as of late it promised to spend billions of dollars to shield merchants from selling such unlawful items.