Nike Returns to Amazon After Six-Year Absence to Boost Sales

Nike, the global leader in sportswear, has made a significant move by returning to Amazon's online marketplace after a six-year absence. This decision is part of a broader strategy to revitalize growth and repair relationships with key wholesale partners, a priority for Nike's current CEO, Elliott Hill. Hill has committed to supporting Nike's wholesale partners, including Dick's Sporting Goods and Foot Locker, which were previously marginalized by the company's focus on direct-to-consumer sales.

Nike's re-entry into Amazon's platform is a response to the challenges faced by its previous strategy. Under the leadership of its former CEO, Nike had shifted its focus towards developing its own sales channels, which ultimately led to a decline in sales. The company's spokesperson emphasized that Nike is investing in its market presence to ensure that consumers have access to the right products, best services, and personalized experiences, regardless of where and how they choose to shop. This includes expanding into new digital channels, such as Amazon in the United States.

Amazon has indicated that it will soon begin directly sourcing a broader range of Nike products to expand the selection available to U.S. customers. The e-commerce giant is also giving independent sellers more time to clear their inventory of products that overlap with the new direct supply items. This move is part of a broader effort to address long-standing tensions between Amazon and some brands, which have accused the platform of failing to effectively combat counterfeit goods and knockoffs. Additionally, Amazon's own branded products, which compete with those of other brands, have been a source of concern for many retailers.

The decision to return to Amazon is not without its risks. Many consumers rely on Amazon's search engine to quickly find and purchase the products they need, and brands that are not available on the platform risk losing business to competitors that appear in search results. Nike's previous experience on Amazon was fraught with challenges, including the proliferation of gray market goods and counterfeit products. The company struggled to control the way its products were listed, the information displayed, and even the authenticity of the items sold.

In 2017, Nike joined Amazon's Brand Registry program in an attempt to gain more control over its products on the platform. The program was intended to provide Nike with better data on its customers and enhance its ability to remove counterfeit goods. However, Nike encountered difficulties in managing its presence on Amazon. Third-party sellers whose listings were removed would quickly reappear under different names, and the lack of customer reviews for official Nike products resulted in poor visibility on the site. Despite these challenges, Nike's return to Amazon represents a strategic shift aimed at restoring growth and strengthening its retail partnerships.