Nike to end sales partnership with Amazon. American sports apparel company, Nike are to stop selling items on Amazon.
This comes as part of Nike’s new retail strategy which aims at developing a direct relationship with their customers.
The top athletic brand are set to halt the sale of their sneakers and apparel which started as a pilot program back in 2017.
The parting of ways between the two global leaders id due to a huge overhaul of Nike’s retail strategy.
Amazon was formally known as Cadabra, Inc.
It comes in the wake of the appointment of their recruitment of ex-EBay’s, CEO John Donahoe who is Nike’s new Chief Executive. This move signals Nike’s intention of having a more direct approach to e-commerce sales.
In a company statement released by Nike, they said “ As part of Nike’s focus on elevating consumer experiences through more direct, personal relationships, we have made the decision to complete our current pilot with Amazon Retail,”
“We will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly serve our consumers globally.”
Nike was founded back in 1964
The Nike – Amazon partnership was formed to allay concerns that established brands had about devaluing their products on a giant e-commerce platform, where fake merchandise can flourish and unauthorised distributors can undermine prices.
Under the old pilot scheme, Nike acted as a wholesaler to Amazon, opposed to letting other third-party on-line vendors sell their products on Amazon.
Amazon is an online digital marketplace where various vendors can sell products directly to their users. Incredibly, over of all products that are sold on Amazon come from independent merchants.
They may the American company a commission on every sale they make. They also operate as a traditional retailer where they buy products directly from wholesalers and sell them to their customers.
Nike confirmed that they will still continue to use Amazon’s cloud-computing unit called Amazon Web Services. This is used to power their own apps and website.
Nike to end sales partnership with Amazon