Nike is resuming direct sales on Amazon after a six-year hiatus, driven by declining revenues and the need to expand its distribution channels.
At a Glance
- Nike will sell products directly on Amazon’s U.S. website for the first time since 2019.
- The company reported a 9% drop in third-quarter revenue to $11.27 billion.
- Nike plans to raise prices on select products starting June 1, 2025.
- Amazon will phase out certain third-party Nike sellers to reduce counterfeits.
- Nike’s stock rose over 2% following the announcement.
Strategic Pivot
In 2019, Nike ceased direct sales on Amazon, aiming to strengthen its direct-to-consumer (DTC) channels and address concerns over counterfeit products. However, the DTC strategy has faced challenges, with a significant decline in digital sales and overall revenue.
The return to Amazon allows Nike to leverage the e-commerce giant’s vast customer base and logistics network, potentially revitalizing sales and improving customer experience.
Watch a report: Nike returns to Amazon after six-year hiatus.
Risk and Opportunity
While re-engaging with Amazon offers growth potential, it also presents risks. Nike must balance maintaining brand integrity with broader distribution. The company has negotiated measures with Amazon to reduce counterfeit products, including phasing out certain third-party sellers.
Additionally, Nike plans to increase prices on select products starting June 1, 2025, in response to rising tariffs and production costs.
Market Reaction
Investors responded positively to the news, with Nike’s stock rising over 2%. Analysts view the move as a necessary step to regain market share and adapt to changing consumer behaviors.
As Nike navigates this strategic shift, the success of its renewed partnership with Amazon will be closely watched by stakeholders and competitors alike.
