Nike in particular is taking a risky play by returning to the U.S. Amazon storefront. Coinciding with that advance, the company has announced significant price increases across many of its footwear styles. Beginning next Sunday, the company will increase prices on nearly all footwear priced above $100 by as much as $10. Nike’s move is Rei’s seasonal planning. The company has failed to deal with tariffs set by U.S. President Donald Trump, which have hampered global trade.
After a three year experiment, Nike is going back to selling direct on Amazon. As part of that broader strategic shift, this new approach represents a fundamental new direction for the company’s retail strategy. This decision marks a significant departure from the company’s previous stance. Until 2019, they were only allowed to make sales of limited runs on the platform. By re-engaging with Amazon, Nike hopes to improve its presence and distribution in the cut-throat, competitive online retailer.
Nike spokesperson commented on the pricing adjustments, stating, “We regularly evaluate our business and make pricing adjustments as part of our seasonal planning.”
The upcoming tariff hike would only be felt on those shoes retailing at over $100. Iconic silhouettes like the Air Force 1 sneakers will always remain impervious to bumps in price. Other nonathletic shoes costing less than $100 will continue to be exempt. Nike’s children’s products will not be subject to any price increases in this round of changes. In similar fashion, Jordan labeled apparel and accessories will still cost the same.
Nike has not publicly connected its recent business decisions to the continuing tariff saga. These commonsense policies are politically explosive, giving more than a passing glance at their downstream effects across multiple sectors. For instance, countless retailers are dismayed that frequent increases in import prices due to tariffs have gone largely unaddressed. Nike’s decision to increase prices might be an indicator of broader economic stresses hitting the industry.