According to several sources, sportswear giant Nike will begin selling both sneakers and apparel directly through Amazon in an almost direct-to-customer business model.
This news comes shortly after the announcement of Amazon purchasing Whole Foods for $13 billion, a move that strategically corners the grocery foods market. But this isn’t necessarily a means to an end for Nike, but a natural progression that actually benefits them greatly.
More or less, tons of Nike sneakers and apparel are already sold on Amazon by secondary shops and individuals who purchase products for wholesale. With this move, Nike can control their image on said digital channels but more importantly, regulate cost. Goldman Sachs, the source of this potential merger, insists that the deal could be worth potentially up to $500 million of revenue yearly.
Nike offering product directly to Amazon could also be devastating for certain retailers that depend on Nike to stock their stores. Retailers like Dicks Sporting Goods could see a huge hit to their already struggling business models.
Stay tuned for more on this story regarding Nike and Amazon.
Source: Business Insider