Nike will stop selling directly on Amazon, ending pilot program

Nike shoe boxes

Nike shoe boxes

The sportswear giant - which agreed in 2017 to sell its a limited assortment of merchandise to Amazon in exchange for stricter policing of counterfeits and restrictions on unsanctioned sales of its products - confirmed the news in a statement to FN.

Nike supposedly thought that partnering with Amazon would give it more control over third-party sellers and potential counterfeit goods.

When Nike announced the pilot program with Amazon.com Inc.in 2017, it hoped that it would have more control over the brand if it were more closely involved.

Nike is ending a sales partnership with Amazon less than a month after the athletic gear company named an e-commerce veteran as its new chief executive. Third-party sellers whose listings were removed simply popped up under a different name. Nike competitors Under Armour and Adidas continue to sell products on Amazon. The outlet, however, notes that Nike will still be found on the site.

Amazon has supposedly been preparing for the break, according to Bloomberg.

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 will also continue to use Amazon's AWS web services. Amazon's third-party marketplace allows sellers to list their products directly on the site. Today, more than 30% of Nike's annual revenues stem from its direct-to-consumer business. Nike, which generated about 15 percent of its sales from its own website and retailer partner sites a year ago, has previously said it sees that percentage rising to 30 percent by 2023. Bloomberg noted that one project lets brands put unique codes on their products to make it easier to identify fakes. Nike, which generated $36 billion in revenue previous year, sells its products through a large, global network of retailers.

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