Amazon and Nike Fight Counterfeits as a Team
Amazon recently cut out all marketplace sellers who were previously offering Nike products for sale in an ongoing effort to curb counterfeiting. Instead, Amazon.com will now provide Nike products directly to consumers. Additionally, the Prime Wardrobe Initiative program backs up Amazon’s efforts to dominate the retail fashion industry.
Earlier this week, social media groups were enraged by the recent block on all third party sellers who offered Nike products for sale. Yesterday, a news release stated that Amazon and Nike have paired up to offer this exclusive brand’s products only from Amazon themselves — that means no third party sellers will be able to sell the brand. Instead, Amazon will sell Nike products themselves. Prior to this decision, Nike products were only offered through the Amazon-owned shoe platform, Zappos.com. Now, Nike will have a customized storefront on the Amazon marketplace alongside major competitors like Adidas.
According to Bloomberg, the reasoning behind this decision is largely based on the ongoing counterfeit problem for Amazon. Nike has been one of the main brands impacted by knockoff products, so this agreement is mutually beneficial. It allows Nike to continue to profit from Amazon’s massive customer base while protecting their brand from counterfeit sellers. For Amazon, it allows for further dominance in the fashion industry.
Prime Wardrobe Supports Fashion Industry Dominance
The decision is backed by the new Amazon program, announced two days ago: the Prime Wardrobe Initiative. Currently in beta, the Amazon Prime Wardrobe program will offer a “try before you buy” feature for ecommerce fashionistas: after 3 Prime-eligible fashion items are added to a buyer’s shopping cart, the items will be shipped with a return box and prepaid shipping label. This innovative new approach to online fashion sales lets buyers try on the items and simply place any unwanted clothing in the return box.
With the Amazon Prime Wardrobe program, which is currently in beta and pending an official launch, fashion shoppers are assured that they will always have the option to return any unwanted items with the ultimate convenience.
Between the new Amazon & Nike partnership and the Prime Wardrobe Initiative, Amazon is rapidly increasing its presence in the fashion industry. Over the past year or so, this has been a very difficult industry to penetrate for Amazon. This may be partially due to the Amazon Fashion CEO stepping down from her position earlier this year. It’s also largely due to high-profile fashion brands and their view of the Amazon marketplace. Several experts stated that luxury brands feared having their items appear next to items that are far less desirable — and less expensive. With Amazon consistently working to change that perception, we’re sure that further fashion industry acquisitions will happen in the coming months.