The Platform Trade-Off: Nike's Amazon Exit and the Restructuring of Control, Margin, and Customer Ownership From 2019-2024
Shauryaraj Patel
12th Grade IB Diploma Programme Cygnus International School Vadodara, India
Download PDF
http://doi.org/10.37648/ijtbm.v15i03.013
Abstract
In 2019, Nike made the most radical move to date, breaking away from Amazon to develop its Consumer Direct Offense strategy further. It was a strategy that focused on greater brand control, high profits, and owning consumer data through proprietary properties, including the Nike App and SNKRS. The early period of this strategic turn out proved quite promising; direct-to-consumer revenues experienced remarkable growth, digital interaction began to accelerate, and investor confidence drove the company's stock to an unprecedented level.
By 2023-2024, the model, however, pointed to underlying structural constraints. Digital revenues grew more slowly, competition intensified, and consumers flocked towards websites that provided more convenience and price visibility. What started as a bold experiment in platform independence revealed weaknesses regarding scalability and long-term resilience.
Keywords: DTC (Direct-to-Consumer); RBV (Resource-Based View); TCE (Transaction Cost Economics); SNKRS (Nike's sneaker application/platform); COVID-19; FMET
References
- Bloomberg. (2019, November 13). Nike will end its pilot project selling products on Amazon site. Retrieved from https://www.bloomberg.com/news/articles/2019-11-13/nike-will-end-its-pilot-project-selling-products-onamazon-site
- CNBC. (2025, May 21). Nike to resume selling directly on Amazon for first time since 2019. Retrieved from https://www.cnbc.com/2025/05/21/nike-to-resume-selling-directly-on-amazon-for-first-time-since-2019.html
- CNBC. (2025, June 26). Nike (NKE) Q4 2025 earnings. Retrieved from https://www.cnbc.com/2025/06/26/nike-nkeq4-2025-earnings.html
- Forbes. (2020, January 22). Why Nike cut ties with Amazon and what it means for other retailers. Retrieved from https://www.forbes.com/councils/forbesbusinesscouncil/2020/01/22/why-nike-cut-ties-with-amazon-and-whatit-means-for-other-retailers/
- Forbes. (2023, June 15). How Nike learned a wholesale lesson. Retrieved from https://www.forbes.com/sites/retailwire/2023/06/16/how-nike-learned-a-wholesale-lesson/
- Hagiu, A., & Wright, J. (2015). Multi-sided platforms. International Journal of Industrial Organization, *43*, 162– 174. https://doi.org/10.1016/j.ijindorg.2015.03.003
- Liu, J., Liu, Y., & Zhang, Q. (2021). How firms go digital? The digital transformation path analysis—Evidence from Nike. Advances in Economics, Business and Management Research, [volume]([issue]), [pages]. https://doi.org/10.2991/aebmr.k.210917.085
- Macrotrends. (2025). *Nike revenue 2010-2025 | NKE*. Retrieved from https://www.macrotrends.net/stocks/charts/NKE/nike/revenue
- Modern Retail. (2024, March 21). Nike posts its first digital decline in nine years. Retrieved from https://www.modernretail.co/operations/nike-posts-its-first-digital-decline-in-nine-years/
- Nike, Inc. (2019). Fiscal 2019 fourth quarter and full year results. Retrieved from https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2019/NIKEInc-Reports-Fiscal-2019-Fourth-Quarter-and-Full-Year-Results/default.aspx
- Nike, Inc. (2021). Fiscal 2021 fourth quarter and full year results. Retrieved from https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2021/NIKEInc.-Reports-Fiscal-2021-Fourth-Quarter-and-Full-Year-Results/default.aspx
- Nike, Inc. (2023). Fiscal 2023 fourth quarter and full year results. Retrieved from https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2023/NIKEInc.-Reports-Fiscal-2023-Fourth-Quarter-and-Full-Year-Results/default.aspx
- Nike, Inc. (2024). Fiscal 2024 fourth quarter and full year results. Retrieved from https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2024/NIKEInc.-Reports-Fiscal-2024-Fourth-Quarter-and-Full-Year-Results/default.aspx
- SEC.gov. (2019). *Nike, Inc. 2019 Form 10-K*. Retrieved from https://www.sec.gov/Archives/edgar/data/320187/000032018719000051/nke-531201910k.htm
- SEC.gov. (2024). *Nike, Inc. 2024 Form 10-K*. Retrieved from https://www.sec.gov/Archives/edgar/data/320187/000032018724000044/nke-20240531.htm
- Statista. (2025). *Nike Direct revenue share worldwide 2019-2025*. Retrieved from https://www.statista.com/statistics/1278371/nike-direct-to-consumer-revenue-share-worldwide/
- Statista. (2025). Nike’s revenue by sales channel worldwide. Retrieved from https://www.statista.com/statistics/888725/nikes-revenue-by-sales-channel-worldwide/
- Statista. (2025). Nike’s wholesale revenue by segment. Retrieved from https://www.statista.com/statistics/888763/nikes-revenue-by-customer-segment-worldwide
- Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, *18*(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
- Williamson, O. E. (1981). The economics of organization: The transaction cost approach. American Journal of Sociology, *87*(3), 548–577. https://doi.org/10.1086/227496
- Yan, C., Brown, C., & Greenleaf, A. (2022). Just do it: Analysis of Nike's marketing strategies and growth recommendations. Journal of Student Research, *11*(4). https://doi.org/10.47611/jsrhs.v11i4.3520