Archive - 2017

1
Amazon/Nike Partnership Confirmed by Bloomberg
2
More Nike/Amazon Relationship Rumors
3
Incoming Textbook Restrictions

Amazon/Nike Partnership Confirmed by Bloomberg

Citing a source “familiar with the situation” Bloomberg.com has announced that Nike will begin selling on Amazon although a timeframe was not included in the report.

The reasoning behind the move appears to be that they want to exert more control over how its products are sold and keep knockoffs off the market.

“The approach lets Nike Inc. take greater control over how its products are sold, helping ensure that knockoff shoes aren’t offered by third parties on the e-commerce marketplace, said the person, who asked not to be named because the arrangement isn’t yet public.”

I personally find it somewhat disingenuous that “knockoffs” are the main reason being cited for them deciding on entering the Amazon ecosystem. If you take the amount of sales moving from Brick & Mortar into online sales and combine it with the death of stores like Sports Authority I think that Nike sees the writing on the wall and is finally jumping on board to regain some of the sales it has lost by opening up another sales channel.

As an active Nike seller it’s going to be very interesting seeing how Nike approaches their launch onto the platform and if they let third party sellers continue to sell on various Nike listings (ala-Under Armour) or intend to aggressively attempt to have sellers removed/restricted. Given the fact that as recently as a few weeks ago I confirmed that Amazon had a team dedicated to recruiting larger third party Nike sellers from Ebay and offering to get them approved to sell the brand if they moved to selling on Amazon I find it hard to believe that Amazon will totally restrict everyone from selling all Nike products but only time will tell.

Here is a brief video of some Bloomerg staff discussing the impending deal and it’s implications.

Go Ship Some Stuff!

More Nike/Amazon Relationship Rumors

The rumors that Nike and Amazon are going to be working together continue to pile up. Today they are in the news because Lindsay Mann, an Analyst at Goldman Sachs weighed in on the possibility. She cited “Channel Checks” as the source for her information, which is apparently an investment term for saying that she or someone on her team spoke to management within Nike.

Mann sees the move for Nike to start selling on Amazon as an important opportunity for Nike for three different reasons.

  1. Selling on Amazon would give Nike more direct exposure on a large and fast growing sales channel
  2. By selling directly Amazon could exert more control over how it’s brand is presented on the platform
  3. It would give Amazon more access to Millennials

She also thinks that if Nike makes a move to start selling on Amazon it could start a trend where other brands who have resisted working with Nike would start coming on board.

“Taking this step would give NKE direct economic exposure to a large and fast growing distribution channel, while improving the brand presentation and expanding access to Millennial shoppers,” she said. “NKE’s move could inspire other wholesale brands, many of which have so far resisted a partnership with amazon.com, to directly engage.”

The stock market has responded with Nike stocks being up a couple percent and several brick and mortar shoe retailers such as Dicks Sporting Goods, Finish Line and Foot Locker being down as much as eight percent.

Something else that I saw mentioned today that I find interesting is that Nike already sells their shoes via Zappos, which is owned by Amazon. Given that pre-existing relationship I don’t think it’s that big of a leap to say it’s not IF they will start selling on Amazon directly, but WHEN will they start selling directly. In the past month or so we’ve gone from rumors, to restrictions and now we have a large trading firm saying that they believe it’s going to happen. If you are still in denial and think this won’t happen I encourage you to look at the trend that’s emerging here and don’t get caught with a lot of inventory that Nike/Amazon can undercut you on.

Go Ship Some Stuff! (Especially if you have Nikes to move)

Incoming Textbook Restrictions

Several Amazon sellers who sell textbooks just got the following email from seller support today.

 

“Hello,

Please read this email carefully. The listing information described below may affect your ability to sell certain products on Amazon.

As part of our ongoing efforts to provide the best possible customer experience, we are implementing selling qualifications for certain popular products in the Textbook category.

Please reply to this email within 3 weeks with the following:

— Copies of up to 3 invoices or receipts from your primary supplier(s) issued in the last 180 days for your popular Textbook products. These should reflect your sales volume during that time.
— Contact information for your supplier, including name, phone number, address, and website.

You can send .pdf, .jpg, .png, or .gif files. These documents must be authentic and unaltered. We may call your supplier(s) to verify the documents. You may remove pricing information, but the rest of the document must be visible. We will maintain the confidentiality of your supplier contact information.
If we do not hear from you within 3 weeks, or we are unable to confirm the information you provide, we will remove your listings.
To learn more about our policies, search for these topics in Seller Central Help:

— Prohibited Seller Activities and Actions
— Product Detail Page Rules
— Condition Guidelines
Sincerely,
Seller Performance Team”

 

Thankfully this seems like it will be a limited restriction for “certain popular products” but the ambiguity in that statement doesn’t exactly inspire confidence either.

Several book sellers have also reported this morning that they are showing that they are NOT eligible for the buy box on a large amount of the used books that they have listed, I can’t help but feel like the two situations might be related.

Amazon is rolling out more and more restrictions on products, last week it was Nike, this week it’s books. The bottom line I’m seeing in all this is that sourcing inventory in a more “Amazon approved” method like wholesale or private label appear to be VERY wise choices to make moving forward. Arbitrage is far from dead, but it seems that there are going to be more and more roadblocks like this as time goes on. Adapt, improvise and overcome – or be left behind!

UPDATE: It appears that some sellers got a similar message last week and were able to get the restriction lifted simply by opening a ticket with Seller Support. If you have similar success please post a comment to let us know!

Go Ship Some Stuff!

Copyright © 2014. Created by Meks. Powered by WordPress.