Nike is Back on Amazon…And Giving 3P Sellers the Boot

Nike is back on Amazon after a several-year hiatus. Beginning this year, Nike will once again offer its products on Amazon.

This may be good news for Amazon and consumers, but it's bad news for the multitude of third-party sellers who offer Nike products on the platform. 

Nike Stopped Selling on the Platform in 2019

Nike sold directly to consumers on Amazon for just two years before stopping in 2019.

At the time, Nike cited an inability to curb counterfeiters as one of its main concerns. Simultaneously, Nike was trying to grow its direct-to-consumer (DTC) business and avoid marketplaces and other retailers. 

In 2022, Nike began reducing its wholesale partnerships. This strategic move led to a significant decrease in the availability of Nike products at Foot Locker and other retailers. The move prompted many—especially Foot Locker—to diversify their brand offerings.

Amazon Gives 3P Sellers Until July for Some Products

An Amazon spokesperson told The Verge on Friday that they are giving third-party sellers until July to continue selling products on the platform.

Amazon spokesperson Megan Lagesse told The Verge, “While independent sellers have listed some Nike inventory in our store for many years, Amazon will soon begin sourcing a much wider range of Nike products directly to expand our selection for US customers. We value independent sellers, and we’re providing an extended period of time for the small number of sellers affected to sell through their inventory of overlapping items.”

Amazon, for the most part, does not allow ‘brand-gating'—a practice where it forbids third-party sellers from selling a particular brand. However, for some well-recognized brands such as Nike, Amazon does allow brand gating. 

Unfortunately, it remains to be seen if Amazon's two-month window will provide sellers with enough time to sell through their existing inventory. 

Nike's Poor Performance Leads to About-Face with Amazon

Nike has experienced poor financial performance since COVID.
Under new CEO Elliott Hill, Nike has sought to rebuild relationships with key retailers.

At the same time, Nike has been especially vulnerable to tariff uncertainty, with many of its products coming from China and other countries potentially subject to high Trump-era tariffs.

This performance has led Nike to make an about-face regarding Amazon. The platform represents a potentially lucrative, massive market that Nike had ignored for years. While increased revenue is almost certain from returning to Amazon, it remains to be seen whether Nike can successfully combat counterfeiters this time around—and whether the move will benefit both the top and bottom lines.