Nike And Amazon Are Kicking Off A Pilot Together

It seems the world’s largest maker of athletic shoes and the world’s most successful eCommerce marketplace have found some common ground.

Nike announced yesterday that it will be launching a pilot program with Amazon.com that will see a limited range of its products on the eCommerce site. The announcement follows reports from early in the week that Nike is ready to sell directly through Amazon rather than let unlicensed third-party dealers corner the market on the action.

“We’re looking for ways to improve the Nike consumer experience on Amazon by elevating the way the brand is presented and increasing the quality of product storytelling,” Nike Chief Executive Mark Parker said on a post-earnings call.

According to Goldman Sachs analyst Lindsay Drucker Mann, the pilot — if successful — could mean a revenue bump for Amazon — and a big one. Mann’s estimate is a $300 million to $500 million pick-up in the United States, if the pilot turns into a more meaningful and long-term partnership.

Beaverton, Oregon-based Nike saw greater demand for its core brands including Jordan, and in sportswear and running categories, during the firms’s fourth quarter that ended May 31. This is key because Nike has doubled down on those core brands lately as competition for sneaker dominance has been a fever pitch for the last several years.

Nike is also focused on bringing down its overheard and becoming a lighter, more nimble firm. As a result, it has announced intentions to cut 2 percent of its global workforce and trim a quarter of its shoe styles.

Nike is also increasingly pushing for share in the Chinese market — with revamped stores and a greater presence online with Alibaba’s Tmall.