Nike will no longer be selling its shoes and apparel on the E-commerce behemoth Amazon Retail. The current pilot project of Nike with Amazon had started in 2017, which is now seeing its end.
Wrapping up of this project was accompanied by another big change in the Nike management, with the hiring of John Donahoe, previously eBay executive who is going to be its next CEO. This hiring of former eBay CEO points towards another glowing dawn in Nike’s policies.
Sharing its stand and further prospects, Nike stated to Bloomberg, “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.”Source
It seems likely that this development was not any sudden one, and Amazon might have prepared in advance, given that it had already linked with multiple third-party sellers, which would let it sell Nike’s products. What this means is that Nike will not sell its clothing and shoes ‘directly’ on Amazon.
When in the pilot program, Amazon could buy clothing and shoes directly from Nike without involving any third party. This will not be possible now with the ending of the term.
Experts say that Nike had struggled to maintain a credible niche in the Amazon marketplace, due to the mushrooming of third party sellers with fake Nike listings. Before 2017, Nike had almost no control over its products that were available on the Amazon store.
After being added to Amazon’s brand registry program, whereby the way, Nike happens to be among the early birds, Nike expected greater control over its brand portrayal on Amazon. But suffice it to say; even the genuine Nike products had little or no reviews which garnered bad position on the marketplace.
Although walking away from Amazon will not undo the problems, nor did staying help. Popular brands like Nike can afford to be this choosy and selective, which many other brands frustrated with Amazon’s incapacity over counterfeits cannot.
Similar to Amazon’s approach, even AWS, Amazon Web Services shall be used by Nike like it was being done earlier also. This would be done since Amazon Web Services also supports the Nike website and applications. AWS is the cloud computing platform of Amazon and is being used globally.
Amazon has recently been at the receiving end of a lot of criticism for selling fake and counterfeit products in the name of big brands. At the same time, the E-Commerce giant had always adopted a policy of no interference, so much so that the brands facing the concerned problem would see for themselves.
Lately, many brands have distanced themselves from Amazon for the sale of fake, illegal and dangerous products. Reportedly, a multitude of third-party sellers sullies the brand image of many brands with fake merchandise. As for this, Nike’s ending its two-year-old pilot project could be another one among a chain of sorry news for the online marketplace.
Nike has been on a refreshing spree ever since it launched its SNKRS app. With the use of collection points and involving vending machines, Nike has endeavoured to make its working and machinery more customer-friendly. Usage of technology and software is being done to upscale its sales.
Amazon buys goods from wholesalers and as a digital marketplace, sells those products as a retailer to its consumers. The majority of products sold on the Amazon retail is sourced from independent merchants. These vendors and companies pay Amazon a commission on the completion of every sale.
According to some sources, the digital mall Amazon is working on to improve brand credibility. It plans to invest in reducing the prevalence of fake items with a prominent brand name attached to them.