Nike Will Stop Selling Their Goods on Amazon
The sports accessories manufacturing giant said they will end selling their shoes and clothes by Amazon. In 2017 Nike agreed with Amazon to sell its goods on Amazon’s official Website. Amazon also allowed this big brand for online sales through their website. In some statements, Nike said that they want to focus on their direct business, but they will try to do a partnership with some retailers & platforms. Bloomberg reported this move of Nike. Also, in earlier days Nike refused to sell its products directly to Amazon, fearing that it will affect their brand’s image and it will become smaller. Nike executives were not happy with some of the unauthorized sellers of amazon and it can affect Nikes Image & policy.
Amazon offers an online market like a digital mall where different merchants can sell their products and goods. Independent merchants do more than 60 percnet of sell on amazon and pay commission to amazon on sale. Amazon also works as a retailer; it is also buying products from retailers and sale them to the customer. Nike told them they will use Amazon cloud computing, web service in their apps and on the Nike website. Amazon through one of their spokesperson, declined this move from nike. Amazon said they are trying to bring third-party vendors with Nike goods so that Nike products will be accessible on the site. Amazon is working on a unique project in that they going to put unique code on different brands so it will be easier to classify fake products.
For some years of the Nike products sold on amazon were fake and gray market items. Hence nike struggled to control this Amazon market place. Nike observed some bad reviews and comments on their official website because of fake items of amazon. Former Amazon employee James Thomson said, “Leaving Amazon will not solve Nikes Problem. It will not Solve this fake Nike product problem. It shows how big brands like Nike are struggling with digital selling”.