Introduction to Nike’s Return to Amazon
Nike confirmed on Wednesday that its shoes are returning to Amazon. The company stopped selling its goods wholesale on Amazon six years ago as part of a push to distribute more directly to customers and maintain greater control over the experience.
- Nike confirmed on Wednesday that its shoes are returning to Amazon.
- The company stopped selling its goods wholesale on Amazon six years ago as part of a push to distribute more directly to customers and maintain greater control over the experience.
- Amazon told CNBC in a statement that it will “soon begin sourcing a much wider range of Nike products directly to expand our selection for U.S. customers.”
Nike will resume selling its products directly to Amazon in the U.S. for the first time since 2019.
Background on Nike’s Decision
The sneaker giant stopped selling its goods wholesale on Amazon six years ago as part of a push to distribute more directly to customers and have greater control over the shopping experience. At the time, Nike and several brands like popular shoemaker Birkenstock cut ties with Amazon due to rising concerns around counterfeit products on the company’s sprawling third-party marketplace.
Nike’s Statement
A Nike spokesperson said on Wednesday that the company is investing in its marketplace to bring more products and services to "consumers wherever and however they choose to shop."
"This includes expanding to new digital accounts, including Amazon in the U.S., new physical partners like Printemps, elevating retail experiences across the marketplace, and launching Nike’s AI powered conversational search to improve our online services," the spokesperson said in a statement.
Amazon’s Statement
Amazon told CNBC in an email that it will "soon begin sourcing a much wider range of Nike products directly to expand our selection for U.S. customers." The Information earlier reported the news.
Impact on Third-Party Sellers
Prior to the agreement, a limited selection of Nike products were available on Amazon via third-party sellers. But Nike was a "gated" brand on Amazon, meaning it was highly restricted to prevent counterfeit and low-quality items. Apple and L’Oreal are among other gated brands on Amazon.
"We value independent sellers, and we’re providing an extended period of time for the small number of sellers affected to sell through their inventory of overlapping items," Amazon’s spokesperson added.
Conclusion
The deal represents a win for Amazon, which has sought to attract more high-end brands to its platform. Amazon found early success with online apparel by selling a wide range of basics from popular brands and its own private labels. In recent years, it’s moved upmarket by opening online luxury fashion shops. Amazon late last month launched a storefront with Saks Fifth Avenue featuring a curated range of luxury brands like Dolce & Gabbana.
— CNBC’s Jessica Golden contributed reporting to this story.
FAQs
Q: Why did Nike stop selling on Amazon six years ago?
A: Nike stopped selling on Amazon six years ago to distribute more directly to customers and maintain greater control over the experience.
Q: What does the deal mean for third-party sellers?
A: The deal means that third-party sellers will have a limited time to sell through their inventory of overlapping items before Amazon begins sourcing Nike products directly.
Q: What other brands are "gated" on Amazon?
A: Apple and L’Oreal are among other gated brands on Amazon, meaning they are highly restricted to prevent counterfeit and low-quality items.
Q: What is the significance of the deal for Amazon?
A: The deal represents a win for Amazon, which has sought to attract more high-end brands to its platform and move upmarket by opening online luxury fashion shops.
