Episode 26 - Nike on Amazon and the Future of Vendor Relationships with Ken Cassar

INSIGHTS ON THE HISTORIC NIKE DEAL ON AMAZON

 


DESCRIPTION

Since Amazon’s historic deal with Nike almost a year ago, brands have been wondering how vendor relationships to the ecommerce giant will change. Today to offer up his insights on the Nike deal is Ken Cassar, Principal Analyst and Vice President at Slice Intelligence. Slice, with its user panel of over 5 million consumers, is always on the cutting edge of consumer trends. Using the wealth of data available to them, Slice can offer up contextualized industry trends that we can then use to make decisions about how to market a brand online.

Counter to our hypothesis that we would see an increase in market share, Nike actually saw a decrease in market share.
— Ken Cassar
nike amazon share 4-18.001.jpeg

 

Ken is here today to share his insights on the Nike deal. He will dive in deep to help us understand the implications for brands and retailers in the future. After this episode, you will know what the deal actually looked like, and then better understand what happened after it went down. From there, Ken will share his best predictions about where things might be headed with Amazon and its relationships to vendors. 

 

Since Ken is here, we will also investigate in detail the marketplace model versus the vendor model. He will share Slice’s own predictions about how brands will begin to employ a hybrid model even more than they are now.

 

KEY TAKEAWAYS

  • All the details about the landmark deal between Amazon and Nike. 

  • Slice found that after the deal, Nike’s shares dropped by 1.3 points. 

  • Resellers that are playing “by the rules” are sticking around after the deal. 

  • Ultimately, Amazon is not going to do anything about third-party sellers unless they are counterfeit.

  • Nike is still letting algorithms drive who goes to the top of the list.

  • A hybrid approach is still the leading strategy for profit.

  • Will Amazon start scaling back on vendor listings? 

  • We will see vendors setting up their own 3p accounts. 

  • The Nike deal probably wasn’t the best for either Nike or Amazon in the future.

  • Brands will start to split their wares between wholesale and direct-to-consumer. 

     

MENTIONED IN THIS EPISODE

Slice Intelligence

 

 

 

 

Season 1