Nike Mulls Selling Directly on Amazon

Nike has so far resisted direct sales on Amazon, but now it seems that, in the face of ebbing sales, the company has decided to Just Do It.

“Our channel checks indicate [Nike] could be close to commencing a direct relationship selling product on,” Goldman Sachs analysts said Wednesday, June 21. Goldman sees the deal being worth up to $500 million in annual revenue, giving Nike’s annual global sales a 1 percent boost.

Increasing online retail outlets may help make up the difference for slimming brick-and-mortar retail outlets. The recent bankruptcy and closure of brick-and-mortar sports retailers like Sports Authority has not done Nike any favors.

But even if Sports Authority were still around, there’s one group that probably wouldn’t be shopping there: millennials. Younger consumers are more likely to turn to Amazon for their sporting needs, so this move gives Nike a more direct line of access to an important demographic.

Some of Nike’s products were available through Amazon before now, but these had been purchased wholesale and listed by third-party sellers and unlicensed dealers.

Officially teaming up with Amazon gives Nike the opportunity to more closely control pricing and presentation. Nike competitors Adidas and Under Armour currently have the Amazon advantage, with eye-catching splash pages to drive clicks and sales for their latest products.

It’ll be a while yet before Nike tops those competitors, but brick-and-mortar competitors Foot Locker and Dick’s Sporting Goods have already felt the effects of the pending deal. According to Reuters, Foot Locker stock fell below a three-year low Wednesday morning, and Dick’s neared an 18-month low.



The PYMNTS Cross-Border Merchant Friction Index analyzes the key friction points experienced by consumers browsing, shopping and paying for purchases on international eCommerce sites. PYMNTS examined the checkout processes of 266 B2B and B2C eCommerce sites across 12 industries and operating from locations across Europe and the United States to provide a comprehensive overview of their checkout offerings.

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