Retail

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 Amazon.com,” 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.

——————————

NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

Click to comment

TRENDING RIGHT NOW