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Businesses The Almighty Buck

Nike Thought It Didn't Need Amazon -- Then the Ground Shifted (wsj.com) 61

An anonymous reader shares a report: For years, Nike was one of the biggest holdouts against Amazon.com, refusing to provide its sneakers and athletic clothing for sale on the hulking e-commerce site. Its products were so cool, the company reasoned, it didn't need or want the help. Recently, Nike reversed course. Behind that decision lies a dramatic shift in the balance of power between brands and Amazon (Editor's note: the link could be paywalled; syndicated source). For decades, big consumer brands carefully controlled which retailers could sell their wares and at what prices. And for years, Amazon left the brands alone. Lately, the explosion of third-party sellers on the site has led to authentic goods from companies such as Nike, Chanel, The North Face, Patagonia and Urban Decay being sold on Amazon even though they don't authorize the sales, undercutting their grip on pricing and distribution. Even though Nike didn't send Amazon its products either directly or through approved wholesalers, Nike is the most purchased apparel brand on the site, according to a Morgan Stanley survey. A recent search for Nike products on Amazon turned up roughly 73,000 items. These days, there are so many third-party resellers, who generally are allowed to resell goods they have lawfully acquired at whatever price they want, that companies see few ways to stop them.
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Nike Thought It Didn't Need Amazon -- Then the Ground Shifted

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  • And? (Score:5, Insightful)

    by Gravis Zero ( 934156 ) on Saturday July 01, 2017 @03:16AM (#54723939)

    Are we supposed to care about what happens to asshole companies that blantly overprice their merchandise? Fuck 'em. This serves them right.

    • Re:And? (Score:5, Insightful)

      by Anonymous Coward on Saturday July 01, 2017 @04:21AM (#54724055)

      Are we supposed to care about what happens to asshole companies...

      This is from the WSJ. This is news for adults, people like me who are dead inside. I don't care whether you care about asshole companies. It shows fascinating trends for the online economy, and what happens to companies who are not keeping up with their consumers' shopping habits.

    • There are other implications of this business practice beyond just what price gets charged for the product.

      Amazon has a huge grey market of third-party resellers who sell a mix of regular and 'international edition' (a.k.a. lower cost goods meant for non-english-speaking markets) products for much cheaper than you'd pay elsewhere. For tech products, where this distinction is very subtle and often entirely software-based, many manufacturers make the blanket declaration that Amazon isn't an 'authorized' resel

      • Fine, so we finally have good motivation for the manufacturers to stop trying to trick the customers by selling different products under the same name ;-)
    • by Anonymous Coward

      Are we supposed to care about what happens

      The purpose of propaganda stories like these is to make you care, and ultimately to make the political class care so that legislation dealing with Amazon can be brought in. This is how special interests and big business manipulate public opinion and state power.

      Now, I don't like Amazon much. Frankly I think that they have grown too big -- inflated by tsunamis of cheap Fed credit over the last 20 years. But you have to understand that this is why Jeff Bezos bought t

  • by h33t l4x0r ( 4107715 ) on Saturday July 01, 2017 @03:24AM (#54723945)
    It's really the only thing as an automation freelancer that I continually see job posts for. Something about sneakerbots is profitable to the right people and I've never understood why. They treat that shit like it's wall street high frequency trading.
  • Their shoes never fit my wide feet. My brother in law gave me a pair and I put them in the trash. Later I read the shoes became collectible and were selling for $100 USD in Japan.
  • by jdavidb ( 449077 ) on Saturday July 01, 2017 @07:25AM (#54724421) Homepage Journal

    These days, there are so many third-party resellers, who generally are allowed to resell goods they have lawfully acquired at whatever price they want, that companies see few ways to stop them.

    Good. We'd all like to be able to stop people from competing with us, but nobody should have the power to do so.

  • Good (Score:4, Insightful)

    by Opportunist ( 166417 ) on Saturday July 01, 2017 @08:57AM (#54724687)

    A first step is taken, now let me import your shoes from South East Asia where they cost a fraction of what you gouge here.

  • https://solecollector.com/news... [solecollector.com] ~50% on a $100 MRSP b4 other discounts like loyalty volumes buy 2-3 pairs etc.. Maybe some enterprising dealers figure out how to game promotions in modest volumes scoop up inventory and resell on e-commerce? There is a lot of retail margin that can be shaved. Plus as others mentioned Gray imports where sold in another country cheaper whether due to foreign exchange fluctuations or other favorable pricing factors. Stores offer loyalty programs for future purchase discoun
  • by intellitech ( 1912116 ) on Saturday July 01, 2017 @03:19PM (#54726343)

    ... then the Ground Shifted

    So.. Nike lost its footing?

Keep up the good work! But please don't ask me to help.

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