Will More Brands Follow Nike’s Lead in Leaving Amazon? Time Will Tell

Nike’s decision last week to not to sell directly to Amazon sent shockwaves through the market. The move, part of Nike’s reimagining of its retail strategy, followed a two-year pilot program with the brand serving as a wholesaler to the online giant. Analysts said the departure is part of a larger shift where direct-to-consumer brands are rethinking their business models and looking for ways to better engage with shoppers — online and with physical stores and activations. Some observers expect more brands to follow Nike’s lead. And while Nike’s departure may give the sportswear brand more leverage in pricing as well as how it directly controls distribution, it will not eliminate third-party selling of Nike goods on Amazon. And while Nike ended the pilot program, the company still uses Amazon Web Services for its e-commerce and other cloud-related capabilities. For other brands eyeing how Nike’s departure plays out, Tony King, an e-commerce expert and chief executive officer of King & Partners, described the move as “a great example of a brand prioritizing long-term brand strength ahead of short-term transactions.” “Nike clearly understands the importance of an elevated consumer experience, and a direct relationship with their client — owning the relationship between brand and customer

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