Nike To End Pilot With Amazon

Nike shoe boxes

The Oregon-based company says it chose to end the experiment, in which it sold products on Amazon's website as it focuses on "elevating consumer experiences through more direct, personal relationships".

Big brands have quit Amazon's platform due to sales of counterfeit products and unauthorised sellers which undermines the value of the original brands.

Nike supposedly thought that partnering with Amazon would give it more control over third-party sellers and potential counterfeit goods. The move is part of Nike's push to sell more of its footwear and apparel items directly to consumers.

Nike has ended a two-year pilot program to sell its shoes and clothing directly on Amazon's website.

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Bloomberg first reported that Nike would be leaving Amazon. "We will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly serve our consumers globally", Nike confirmed. The outlet, however, notes that Nike will still be found on the site. But Birkenstock's goods are still available on Amazon.com today from third-party sellers.

Bloomberg reports Nike chose to end the program amid an overhaul of its retail strategy and the decision to hire ex-eBay CEO John Donahoe as its next chief executive. Nike officials said they will continue using Amazon web hosting to power the Nike website and many of its apps. But the company now wants to focus on creating more "direct, personal relationships" with consumers, mimicking numerous new direct-to-consumer startups that have popped up over the last decade. The company has also said it expects that online sales of its products will eventually surpass those sold in stores. Nike, which generated $36 billion in revenue a year ago, sells its products through a large, global network of retailers.

Amazon has mostly kept a hands-off approach and let brands police the problem, but recently vowed to spend billions of dollars to keep vendors from selling such illegal products.

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