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No Bombshell: #Nike will return to formally selling on #Amazon within 18 months. (-> #COE) Their shift towards a larger, more controlled, DTC strategy isn't reaping the rewards it set out to achieve when it ended its relationship with Amazon in 2019. Sure, it got a bump during COVID but the drums are now beating. Their share price took a 20% hit, wiping out $28B USD in value. Thats the largest single decline in Nikes 4 decades since going public. 2024 results are flat, and its 2025 outlook is a single digit loss. Nike isn't used to going backwards. They need the worlds largest eCommerce retailer. Make sure you read the extensive comments below with more fresh insights by countless industry professionals! Sean Walsh (credits) Chronic: Nike once left Amazon with a huge bang: https://lnkd.in/dU45icjT Me, already predicting in many LinkedIn posts that Nike had made the worst move possible. https://lnkd.in/dTjdq6vw https://lnkd.in/dZwr-N3y It became clear, that Nike is planning its return to Amazon when: Nike Inc. named Muge Erdirik Dogan, a longtime Amazon.com Inc. fashion executive, to be its new chief technology officer, according to an internal email reviewed by Bloomberg. Ergo, the only outcome of Nike‘s move ending relationship with Amazon 1P / 3P was: loosing control over a marketplace that once had been so significant for the entire business: https://lnkd.in/dVRby24U All that reminds of Nike in 1999 being so hesitant entering the E-Commerce space.. https://lnkd.in/dM9KN6EB In fact Nike never really left Amazon when many 100k items got sold TTM through Amazon‘s MPs globally. But Nike gave up control over its brand appearance. While Nike cut ties to Amazon it ramped up relation to fashion MPs like #Zalando, #Aboutyou and #Asos - not really a pure D2C strategy at all. What’s more likely, though, is that Amazon and Nike will eventually strike a deal to give Nike more control over what’s sold on Amazon, in exchange for which Amazon will get both Nike’s blessing and its ad spending. It might take some time — and some painful compromises on both sides – to smooth things out. By walking away, Nike gave up its leverage, and also forfeits the chance to use its colossal marketing budget to buy up ads and drown out rival resellers. PS: also Miele is going to return the #Amazon sooner or later. https://lnkd.in/dSbsQaXM
