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)

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Matt Colvin

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