Nike cuts ties with Amazon, but shoes won’t vanish from site

Nike cuts ties with Amazon, but shoes won’t vanish from site

Many brands-including Nike-are concerned about third-party sellers offering counterfeit products on the marketplace. Anyone looking for Nike can still purchase items on the company website, its app, or at one of the thousands of brick-and-mortar stores where Nike has retail partnerships.

Nike will soon stop officially selling on Amazon, ending a pilot program that began in 2017 as the sneaker and apparel giant looked to expand its presence on the e-commerce titan. The company is also continuing to invest in partnerships with other retailers and platforms.

Nike stock was up about 1 percent Wednesday morning while Amazon's was down about 9 percent as of about 10:20 a.m. Third-party sellers whose listings were removed simply popped up under a different name.

The end to Nike's partnership with Amazon comes about a month after the Beaverton, Oregon-based company named former eBay executive John Donahoe as its new CEO. Bloomberg reports it will continue to use Amazon Web Services as its cloud computing provider to power its apps and online services.

Amazon has been courting outside merchants to make sure Nike's products remain abundant on its marketplace after the company pulls out, Bloomberg reported. Today, more than 30% of Nike's annual revenues stem from its direct-to-consumer business. Officials said the sales bumb was largely driven by Nike Direct, the arm of the company that oversees Nike.com, direct-to-consumer sales and Nike+ digital.

Amazon has mostly kept a hands-off approach and let brands police the problem, but recently vowed to spend billions of dollars to keep vendors from selling such illegal products. Nike, which generated $36 billion in revenue previous year, sells its products through a large, global network of retailers.

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