Nike to halt direct sale of its shoes and clothes through Amazon
Category: #retail  By Pankaj Singh  Date: 2019-11-16
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Nike to halt direct sale of its shoes and clothes through Amazon

In efforts to retain their relevance in the continuously evolving world of ecommerce, companies are losing the personal touch they once had with their customers. Lately however, prominent brands that have a well-established reputation among consumers are gradually working on taking back control over the way they design their brand representation.

One such instance of brands taking back control was observed in Nike, when the renowned US based footwear and sportswear manufacturer reportedly announced that it would stop selling its merchandise directly through online ecommerce giant, Amazon.

Nike’s decision comes as a part of its latest push to market and sell its products to consumers in a more direct manner.

The abrupt halt would conclude a pilot test both companies had started together in 2017. Back then, the company had agreed to the sale of a limited assortment of Nike products to Amazon.

In exchange, Amazon was to carry out stricter policing of Nike counterfeits and put restrictions over unsanctioned sale of Nike products. The deal included Nike accessories, athletic footwear, and apparel.  

With regards to business outlook, the short-term impact caused by Nike’s exit would likely see Amazon incurring minimal loss. However, with respect to the company’s reputation, this exit might make it harder for Amazon to get more top-flight brands that have sufficient cachet as well as direct customer relationships to afford to decline the e-commerce giant’s offer.

Nike stated that as a part of Nike's aim of increasing customer experiences from more personal and direct relationships, the company has decided to complete its ongoing pilot with Amazon. The company would continue to make investments in distinctive, strong partnerships for Nike with other platforms and retailers to seamlessly serve its customers worldwide.

Nike further added that it would continue its partnership with Amazon Web Services to power a number of services on Nike.com as well as within the company’s ecosystem of apps, like SNKRS.

The customers would face a loss if they are regulars on the Amazon store. Although customers would no longer find Nike sneakers or clothes being sold on Amazon, the retailer would certainly look to fill this gap in its catalog of products.

Source credit: https://www.cnbc.com/2019/11/13/nike-wont-sell-directly-to-amazon-anymore.html



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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