Are you shocked by hearing such news? Nike is cooking something special for their customers. So, according to the company itself, Nike is going to stop selling their products on Amazon, including shoes and clothing, ending their pilot program at started in 2017. After the hiring of the former eBay executive John Donahoe as their next CEO, Nike is going to more into a direct selling plan for creating a better personal relationship with their customers.
During their time in the pilot program, Amazon was purchasing the shoes and other merchandise directly from Nike rather than buying them off form third party vendors. There were undoubtedly several benefits that came out of it. For starters, Nike was getting the customer base without any promotional cost, while on the other hand, Amazon was getting its products directly from the company. This also prevented third-party resellers from selling fake products into the store. But Amazon allegedly developed a registry of vetted vendors while violating the pilot program, which could, in turn, creates a significant loss for the company.
While Nike thought that partnering with Amazon could potentially benefit them to get a better customer base, in the end, it turned out that for every third-party vendor that Amazon removes from their stores, hundreds of other pop up to take their place. So, it is the best time for Nike to take control of their business. While Nike has tripled its sales from 2013, the retail market still makes up 68% of its business. But by hiring former eBay executive, Nike can finally push their sales even further. On the other hand, the departure of Nike from Amazon is an excellent blow into their own business, as Amazon has been found selling several counterfeit and fake products. As for the customers, if you are a Nike fan, it’s better to buy your products directly from the store instead of relying on Amazon.