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.
The following are key points regarding 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.
- 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.”
Background on Nike’s Decision to Leave Amazon
Nike will resume selling its products directly to Amazon in the U.S. for the first time since 2019, CNBC has confirmed. 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.
Reasons Behind Nike’s Return to Amazon
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 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."
Impact of the Agreement on Amazon and Nike
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. The deal represents a win for Amazon, which has sought to attract more high-end brands to its platform.
Conclusion
The return of Nike to Amazon marks a significant shift in the company’s strategy, as it seeks to expand its reach and provide more convenience to its customers. With Amazon’s commitment to sourcing a wider range of Nike products directly, customers can expect a more authentic and diverse shopping experience. As the retail landscape continues to evolve, it will be interesting to see how this partnership unfolds and what benefits it brings to both Nike and Amazon.
FAQs
Q: Why did Nike stop selling on Amazon six years ago?
A: Nike stopped selling on Amazon six years ago due to concerns around counterfeit products on the platform and to maintain greater control over the shopping experience.
Q: What does Nike’s return to Amazon mean for customers?
A: Nike’s return to Amazon means that customers will have access to a wider range of authentic Nike products, and the company will be able to provide a more seamless shopping experience.
Q: How will Amazon ensure the authenticity of Nike products?
A: As a "gated" brand, Nike products on Amazon will be highly restricted to prevent counterfeit and low-quality items, and Amazon will source products directly from Nike to ensure authenticity.
Q: What other brands have similar agreements with Amazon?
A: Other gated brands on Amazon include Apple and L’Oreal, which have similar restrictions in place to prevent counterfeit products.
Q: How will this partnership affect independent sellers on Amazon?
A: Amazon will provide an extended period of time for the small number of sellers affected to sell through their inventory of overlapping items, but the exact impact on independent sellers is unclear.
