--- title: Will Nike’s Brand Equity Survive an Amazon Wholesale Partnership? description: Nike will reportedly enter a partnership agreement with Amazon Fashion. But a former employee says this will destroy their brand equity. image: https://blog.pricebeam.com/hubfs/Blog/pexels-photo-202239.jpeg --- [Skip to content](https://blog.pricebeam.com/will-nikes-brand-equity-survive-an-amazon-wholesale-partnership#main-content) [![PriceBeam](https://blog.pricebeam.com/hs-fs/hubfs/lead-flow-images/PBLogoTransparent%20(1).png?width=400&height=100&name=PBLogoTransparent%20(1).png)](https://www.pricebeam.com/) - Solutions ![RGM360](https://blog.pricebeam.com/hs-fs/hubfs/RGM360_Headlines.png?width=319&height=255&name=RGM360_Headlines.png)[PriceBeam RGM360](https://www.pricebeam.com/rgm360) is an end-to-end Revenue Optimization Platform, offering unmatched value by integrating market research, internal data with AI and next-generation simulation and optimization tools. 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[Newsletter](https://www.pricebeam.com/newsletter) - [RGM Pulse Survey 2026](https://www.pricebeam.com/rgm-pulse-survey-2026) - About - [Company](https://www.pricebeam.com/about) - [News & Events](https://www.pricebeam.com/news) - [Partners](https://www.pricebeam.com/partners) - [Press](https://www.pricebeam.com/press) - [Careers](https://www.pricebeam.com/careers) - [Contact](https://www.pricebeam.com/contact) ![Search icon](https://5018647.fs1.hubspotusercontent-na1.net/hubfs/5018647/Design/Icons/Font%20Awesome/search.svg) [All posts](https://blog.pricebeam.com/all) July 6, 2017 # Will Nike’s Brand Equity Survive an Amazon Wholesale Partnership? ![Picture of PriceBeam](https://blog.pricebeam.com/hs-fs/hubfs/Images/PBLogoBadge240x240.png?width=50&name=PBLogoBadge240x240.png)   PriceBeam  ·  1 minute read ![brand equity](https://blog.pricebeam.com/hs-fs/hubfs/Blog/pexels-photo-202239.jpeg?width=1024&name=pexels-photo-202239.jpeg "brand equity") Recently, it was reported that Nike was close to signing a wholesale agreement with Amazon, which reportedly would lead to an additional $500m in sales for the sportswear manufacturer. It all sounds well and good, but the additional sales will be a short-term gain at best. According to Elaine Kwon, a former employee in Amazon Fashion, several premium brands have seen their brand equity spiralling downwards as Amazon’s pricing algorithms starts undercutting competitors’, and set a new ‘industry-low’ price, which, indeed, is a suboptimal [**price positioning strategy**](https://blog.pricebeam.com/price-positioning-long-term-effects-of-short-term-strategies) for high-end brands. The main issue with Amazon’s wholesale is that the objectives of the two parties are not aligned when it comes to pricing. Amazon will set a price that optimizes profits in the short term -- simple as that. Even though Nike is a great customer, Amazon’s pricing is entirely based on short-term profit maximization. On the other hand, the seller, e.g. Nike, should have a long-term strategy for its pricing (although, they don’t always live up to this); Nike needs to consider how its pricing will affect its [**brand equity**](https://blog.pricebeam.com/managing-brand-health-can-you-walk-the-talk) in the long run, how the price aids its [**long-run brand positioning**](https://blog.pricebeam.com/managing-brand-health-can-you-walk-the-talk), and how the price supports other portfolio products. Amazon don’t care one bit about this, which is why many retailers are still reluctant to enter the wholesale partnership. Read the full interview with former Amazon employee, Elaine Kwon, on how brand equity is tarnished by the ecommerce giant here: https://www.racked.com/2017/6/28/15881994/amazon-nike-partnership-elaine-kwon Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://blog.pricebeam.com/will-nikes-brand-equity-survive-an-amazon-wholesale-partnership) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.pricebeam.com/will-nikes-brand-equity-survive-an-amazon-wholesale-partnership) [twitter icon](https://twitter.com/intent/tweet?url=https://blog.pricebeam.com/will-nikes-brand-equity-survive-an-amazon-wholesale-partnership) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://blog.pricebeam.com/will-nikes-brand-equity-survive-an-amazon-wholesale-partnership) [envelope icon](mailto:?body=https://blog.pricebeam.com/will-nikes-brand-equity-survive-an-amazon-wholesale-partnership) ## Related posts [![pexels-photo-165907.jpeg](https://blog.pricebeam.com/hubfs/Blog/pexels-photo-165907.jpeg)](https://blog.pricebeam.com/the-price-creep-strategy-go-or-no-go) #### [The ‘Price-Creep’ Strategy: Go or No-Go?](https://blog.pricebeam.com/the-price-creep-strategy-go-or-no-go) [![pexels-photo-128904.jpeg](https://blog.pricebeam.com/hubfs/Blog/pexels-photo-128904.jpeg)](https://blog.pricebeam.com/nike-lowers-pricing-as-adidas-grows-stronger) #### [Nike Lowers Pricing as Adidas Grows Stronger](https://blog.pricebeam.com/nike-lowers-pricing-as-adidas-grows-stronger) [![pexels-photo-264606 (1).jpeg](https://blog.pricebeam.com/hubfs/Blog/pexels-photo-264606%20(1).jpeg)](https://blog.pricebeam.com/brand-perception-in-emerging-markets-a-lesson-for-western-products) #### [Brand Perception in Emerging Markets: A Lesson for Western Products](https://blog.pricebeam.com/brand-perception-in-emerging-markets-a-lesson-for-western-products) **Pricing Right, Made Easy** Almost all companies struggle to price right. 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