Nike calls off pilot program with Amazon ending direct sales

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The partnership was widely seen as a bid by Nike address the sale of its products by unauthorized or third-party vendors on Amazon's marketplace.

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. Bloomberg wrote, however, "Nike reportedly struggled to control the Amazon marketplace". "We will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly serve our consumers globally". Third-party sellers whose listings were removed simply popped up under a different name. The outlet, however, notes that Nike will still be found on the site.

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Amazon is under pressure from big-name brands to cut back on fake goods from third-party sellers.

Amazon has supposedly been preparing for the break, according to Bloomberg.

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Nike says it will continue working with Amazon Web Services to support its website and mobile apps.

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. But the company now wants to focus on creating more "direct, personal relationships" with consumers, mimicking numerous new direct-to-consumer startups that have popped up over the last decade. Nike posted a 42 percent increase in digital sales in its most recent quarter. The company has also said it expects that online sales of its products will eventually surpass those sold in stores. It's an important part of Amazon's business since it allows Amazon to offer millions more products on its site. Nike, which generated $36 billion in revenue past year, sells its products through a large, global network of retailers.

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