We all know that Nike has parted ways with Amazon. It was all over the news last week and for a short time people will still go to Amazon to find Nike products and only see what resellers have to offer. Eventually the world will go to Nike.com for its brilliantly designed and marketed products. So no big deal – click Amazon for Nike wrong, click Nike for Nike. And so it goes. Heavens No!
Okay hold on to the guard rails. All of these players would absolutely thump me in any form of intelligence test but it is the age of self publishing, and heck, you read this much.
In the Amazon sales model it relies on the universal knowledge that they have everything and at the best price. And if that branded item’s Amazon price is a bit too high for your budget…well, Amazon offers these perceived lesser brands’ products and if that is still a bit too steep, we have our “in-house” brand. So Amazon makes money on every sale and the bait, the big brand (Nike) gets zip. This is the exact same path that Home Depot followed. They did not want the residential brands, they wanted the professional brands. The brands your local home center did not have. Then Home Depot beat up every brand for a better price. Sound familiar?
If brands feel they can do well without Amazon’s web site, and this is very important, their last mile solution, then why do they need this e-store? Nike now knows they have solved those issues and believes that its customers would rather shop at Nike.com than purchase on Amazon.com. That is the differentiating factor, buy versus shop.
I believe that people do not shop on Amazon, they hear about, read about, need something and they hit the easy button and buy. It is just that simple and vulnerable. It is not only easy for the purchaser but also the web site that hosts the article about the book that the reader now wants to buy. Add a rewarded hyperlink and easy button. If Highsnobiety reviews a new Nike sneaker, they have to think new and link to Nike, not Amazon. So do Adidas, Puma, et al stay with the old answer? Capitalist Game On. For the big brands.
In the early days, Amazon was it and the brilliant Mr. Bezos got that and started the day 1 flywheel. One of his moonshots is actually a moon shot, now that is vision. But nothing lasts forever if it stays stagnant. Yes, Amazon’s web site is stagnant. Its key selling points to brands and manufacturers is its huge following and a culture changing last mile solution. Big things but not everything.
So the questions: Can big, well known and respected brands leave Amazon? Can UPS, FedEx and other delivery services effectively pick up the slack? And finally, Has Amazon.com peaked?
More to come.
I would love to hear your comments on this rant.
Some other interesting articles:
- From VOX: Nike’s breakup with Amazon is a lose-lose situation for everyone — including you penned by Jason Del Rey
- From Quartzy: Nike’s digital strategy is to treat everyone the way it treats sneakerheads by penned by Marc Bain
- Frome Fortune: Nike and Adidas Are Caught Between China and the NBA. That’s Fine With Li Ning penned by: Grady McGregor
Original Image by Gerd Altmann from Pixabay