Some large brands aren’t exactly big fans of the Amazon marketplace model, either for practical reasons that conflict with their consumer experience, or as a reflection of their strategic approach to building brand equity, controlling their sales channel, and protecting their IP. Whatever the reasoning, there is a small but growing list of well-known brands that state clearly, ‘We don’t sell on Amazon’.
In 2019, Nike cut ties with Amazon as a first-party seller of its goods, so it no longer sells its products directly to consumers through Amazon’s marketplace. However, many studies have highlighted the fact that the Nike keyword continues to be one of the most frequently searched terms on Amazon. Today, only a portion of Nike’s product lineup can be bought on Amazon. A myriad of third-party sellers and lots of ads from competing brands like Adidas. It’s not a great consumer experience.
Last week Nike reported that it had successfully won a preliminary injunction in an Illinois court against sellers on several eCommerce platforms such as Amazon, eBay, AliExpress, Alibaba, Wish, and DHgate to stop the unauthorized sale of their goods.
This Nike lawsuit alleges that third-party sellers were selling unauthorized and unlicensed Nike products – including footwear, athletic clothes, bags, backpacks, and hats – in violation of its registered trademarks. However, it should come as little surprise to anyone that the world’s largest eCommerce and advertising platforms, despite these efforts, all represent and sell Nike goods. As this search shows on Amazon – willing suspension of disbelief is not a good Amazon sales strategy.
Regardless of whether your company allows or does not allow the sale of your goods on Amazon, it’s essential to ensure that your customers have the best experience on Amazon. We’ve got a few recommendations for eCommerce managers, their agencies, and attorneys to control the path to the buy-button on Amazon:
- Know who is selling and how your product is sold on Amazon.
- Register for Amazon Programs to control who, how and what is sold.
These include the Brand Registry Program, IP Accelerator, Project Zero, and more.
- Actively manage which of your products are sold, how they are sold, and by whom.
By reporting IP violations to Amazon, contacting sellers to gain compliance with your reseller and licensing agreements, or taking other appropriate action.
Contact us at IPSecure if you want to know more about how to generate eCommerce growth through brand protection.