Nike Inc. said it would stop selling clothing and sneakers directly to Amazon.com Inc., a sports clothing brand face.
In 2017, the sneaker giant agreed to sell products to Amazon in exchange for stricter enforcement of counterfeiting and restraining sales. It was part of Amazon's effort to get a court of major fashion brands to sell their products through the site.
In a statement on Tuesday, Nike said it has decided to focus on its direct business, although it will continue to seek partnership with other retailers and platforms. Nike's move was previously reported by Bloomberg News.
For years, Nike had refused to sell directly to Amazon, fearing it would undermine the brand. Nike executives were unhappy with how unauthorized sales continued to be widely available on Amazon, according to people familiar with the matter.
An Amazon representative had no immediate comment Tuesday.
Nike has focused on increasing sales through its own stores, apps and website. It has reduced the number of dealers it uses, and now gets more than 30% of its annual sales from its direct to consumer business.
At the same time, Amazon's website has researched larger product volumes sold by third-party sellers have exploded. They accounted for 60% of physical merchandise sales on the site in 201
Amazon has said it prohibits the sale of counterfeit goods. Earlier this year, Amazon began letting brand owners delete website listings for products they consider fake. At the time, Amazon said their engineers were working to better train the algorithms that automatically scan, block, and scrub the site for suspicious listings.
– Dana Mattioli contributed to this article.
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