Faced with trade tensions, Nike relaunches sales on Amazon and announces price increases

Nike plans to raise the prices of some of its products as early as next week and is preparing to return to the Amazon platform, according to several US media outlets. The decision comes as tariffs imposed by President Donald Trump continue to weigh on global supply chains, affecting distributors' profitability.

The sports equipment manufacturer, which produces a large proportion of its shoes in China and Vietnam, plans to increase the prices of its adult clothing and equipment by between $2 and $10. Shoes sold for between $100 and $150 will see a $5 increase. However, models sold for less than $100 will remain unchanged. For models above $150, a $10 increase is planned.

The only notable exception is the iconic Air Force 1, priced at $155, whose price will not be increased, CNBC says.

With the back-to-school shopping season approaching, the brand has also decided not to change the prices of its children's products.

Nike will also resume direct sales on Amazon after a six-year absence. This repositioning is being led by new CEO Elliott Hill as part of a broader turnaround plan called "win now."

Note that, for several years Nike had focused most of its distribution strategy on sales via its platform. This direct-to-consumer (DTC) strategy had led to   traditional distributors being abandoned.

This change in strategy illustrates Nike's need to increase the visibility of its products in order to compete with brands such as On and Hoka (owned by Deckers), which have experienced very strong growth in recent years.

Facing the trade war

In addition to the challenges Nike has been facing for several years, the company finds itself on the front line of the trade war launched by Donald Trump. Most of its production is located in Asia, while the US is its largest market: in 2024, Nike generated 42% of its revenue there.

Nike will therefore have to cope with additional costs relating to customs duties at a time when doubts are emerging about the resilience of US consumers. As a result, the stock has fallen by over 20% since the beginning of the year.

Since November 2021, the decline has even reached up to 66%. At the same time, the group's profitability has declined significantly. The EBITDA margin has fallen from over 17% in 2021 to less than 14% in 2024. The price increases are therefore aimed at preserving margins that are already well eroded.