Nike began to sell its products through e-commerce channel Amazon in the year 2017. It felt some pressure to collaborate with Amazon as unauthorized sellers were doing some heavy and rapid business. Nike always has a core belief in “Brand Value” so this was an important concern for the company. The deal was drawn up to establish better pricing control in addition to Nike establishing an agreement with Amazon to monitor third-party sellers to counterfeit goods in a concrete way.
However, things aren’t the same as what Nike envisioned and not being benefitted from the partnership in the way they wanted. Nike is one of the most sold and in-demand brands on Amazon and other eCommerce design company, but a big chunk of its sales go to third party sellers, referred to as grey market is still selling counterfeit items, that is affecting company reputation hence, Nike is now pulling back on directly selling its good on Amazon.
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