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Why Nike Cut Ties With Amazon And What It Means For Other Retailers

January 22, 2020

Via: Forbes

In November 2019, Nike announced it would stop selling its products on Amazon as a first-party vendor, putting an official end to a pilot program originally designed in 2017. The plan had Nike serving as a direct wholesaler to Amazon in attempts of curbing counterfeit sales and increasing control across the massive e-commerce marketplace. But just six months into the deal, Nike’s performance plunged.

Ultimately, the program didn’t provide Nike command over the marketplace or, most importantly, their own products. Decreasing third-party sales doesn’t guarantee an increase in first-party sales. And as this failed deal indicates, the market will almost always regulate itself.

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