Nike to Restore Selling Relationship with Amazon, Boost Prices
Return of Nike to Amazon Marks Expansion of Market Presence
After a six-year absence, sportswear giant Nike is set to resume selling directly on Amazon's platform, following confirmation from a company spokesperson. The brand had earlier terminated direct sales on Amazon in 2019, citing a two-year pilot aimed at combating counterfeits.
In a statement, Nike expressed its intention to invest in Amazon's marketplace, aiming to offer consumers an optimal shopping experience, including access to the right products, best services and tailored experiences, regardless of their preferred mode of purchase. This includes expanding to new digital accounts such as Amazon in the US.
Third-party merchants selling Nike products on Amazon have until July 19 to sell off their existing inventory. Nike did not respond to queries regarding the improvement in counterfeit activity on Amazon or the connection between the decision and counterfeits.
The move to return to Amazon is part of Nike's broader strategy under new CEO Elliott Hill, who took over in October. In addition to re-strengthening its online presence, Nike is also establishing new physical partnerships, enhancing retail experiences and launching an AI-powered conversational search to improve its online services.
Simultaneously, the company is exploring the possibility of right-sizing certain footwear styles, including Dunk, Air Jordan and Air Force 1. Moreover, Nike is grappling with tariffs, leading to price increases across its apparel and equipment, effective from Sunday. The increases range from $2 to $10, with significant variations across different product categories.
Nike's decision to increase prices may be linked to tariffs imposed by the Trump administration. Many industry players, particularly footwear retailers, have requested tariff exemptions. Nike, along with brands like Puma and Adidas, emphasized the need for significant capital investment and years of planning to bring manufacturing back to the US.
Adidas and Puma did not respond to questions regarding their own plans for price increases. Puma, however, expressed its focus on adjusting sourcing and expediting deliveries to the US, while maintaining flexibility to respond swiftly to market conditions.
In essence, Nike's decision to return to Amazon signifies an expansion of its market presence and a commitment to providing consumers with seamless shopping experiences across multiple channels. This move aligns with the company's efforts to address evolving consumer preferences and retail trends.
- Nike's return to Amazon marks an expansion of its market presence, extending its digital accounts to include the US marketplace.
- In conjunction with its market expansion, Nike is also focusing on enhancing retail experiences, launching an AI-powered conversational search to improve its online services.
- Simultaneously, Nike is exploring the potential of right-sizing certain footwear styles, such as Dunk, Air Jordan, and Air Force 1, while grappling with tariffs, leading to price increases on its apparel and equipment.
