Nike’s Pricing Strategy and Amazon Partnership
Nike is planning to raise prices of some products from next week and will sell items on Amazon after six years, the company said on Wednesday. The footwear retailer will increase prices on apparel and equipment for adults between $2 and $10, while those priced between $100 and $150 will see a $5 hike, it said.
The company sources a significant portion of its footwear from China and Vietnam. With the critical back-to-school shopping season approaching, Nike will not raise prices for children’s products. “We regularly evaluate our business and make pricing adjustments as part of our seasonal planning,” Nike said.
Price Increase Details
Prices for shoes costing more than $150 will increase by up to $10, while products costing less than $100 will not see any hike. Nike’s Air Force 1 shoes, which cost $155, are exempt from the increase. CNBC first reported on the price increases.
German sportswear brand Puma said earlier this month it had reduced shipments from China to the U.S. and might increase prices in the country due to tariffs. This move by Nike and Puma is likely to impact the sportswear industry as a whole, with other companies possibly following suit.
Back at Amazon
Nike will be back on Amazon as the footwear maker works to regain market share from newer and trendier competitors amid a turnaround push under CEO Elliott Hill. Nike’s products on Amazon are currently sold by independent merchants, and the company stopped selling on the e-commerce platform in 2019 as it shifted focus to sales on its own websites and in stores.
Its return to Amazon in the U.S. was part of its investments in its marketplace to reach more consumers, which also included expanding to new physical retailers such as department store chain Printemps. North America was Nike’s biggest market by total revenue, as of 2024.
Amazon notified some of those merchants that it will ban them from selling certain Nike products from July 19 as it was working with Nike directly, The Information reported, citing a message sent to merchants by the company. “We’re providing an extended period of time for the small number of sellers affected to sell through their inventory of overlapping items,” an Amazon spokesperson said.
Impact on Retail Industry
The partnership between Nike and Amazon is likely to have a significant impact on the retail industry. With Nike’s products available on Amazon, the company will be able to reach a wider audience and increase its sales. This move may also lead to other sportswear brands partnering with Amazon, changing the way people shop for sportswear.
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Conclusion
In conclusion, Nike’s decision to raise prices and partner with Amazon is a strategic move to increase sales and reach a wider audience. The impact of this partnership will be significant, and it may lead to other sportswear brands following suit. As the retail industry continues to evolve, it will be interesting to see how Nike’s partnership with Amazon plays out.
Frequently Asked Questions
Q: Why is Nike raising prices? A: Nike is raising prices due to tariffs and to make pricing adjustments as part of its seasonal planning.
Q: Which products will see a price increase? A: Apparel and equipment for adults priced between $2 and $10, and those priced between $100 and $150 will see a $5 hike. Products costing more than $150 will increase by up to $10.
Q: Will children’s products see a price increase? A: No, Nike will not raise prices for children’s products.
Q: Why is Nike partnering with Amazon? A: Nike is partnering with Amazon to reach a wider audience and increase sales.
Q: What does this mean for the retail industry? A: The partnership between Nike and Amazon may lead to other sportswear brands partnering with Amazon, changing the way people shop for sportswear.
