Nike will stop selling merchandise directly to Amazon, in the context of a direct sale to consumers.
The abrupt halt will put an end to the partnership launched by Nike and Amazon at 2017. At the time, Nike agreed to sell a limited variety of products on Amazon in exchange for stricter policing of "monkey products" and sales restrictions on its products. This included Nike sports shoes, clothing and accessories.
Prior to 2017, Nike had resisted such a deal with Amazon, focusing on its own online marketplace and stores. The fear of Nike, like many other brands, has always been that, working with Amazon, a company loses control of the way its brand is represented on the site.
Nike will continue to use them Amazon Web Services to run its website as well as mobile applications.
Nike brings about 30% of its annual sales directly to consumers. In the financial year ended May 31, Nike's direct sales to consumers totaled $ 2019 billion, fueling an 11,8% jump in sales Internet.
Wholesale customer sales increased by 10% over the same period. Everyone said that Nike had 39,1 billion in tax revenue for the year 2019. Some of its major wholesalers include Foot Locker, Dick's Sporting Goods and Nordstrom. Although it continues to invest in these relationships, it invests heavily in building Nike stores and upgrading its applications and website.
Meanwhile, the Amazon has been trying to become the biggest name in fashion for years. It has released its own clothing brands and is continuing to surpass branded brands such as Calvin Klein and Chico's.