Fashion, News & Events

Nike trying to knockout resellers with new policy update

The final nail in the coffin for sneaker reselling?

words by: Matt Peng
Oct 13, 2022

Sneaker reselling has been on the decline for months now due to a recession market and Nike is looking to further nail that coffin shut with their new initiative. Fighting resellers, Nike has taken it upon themselves to update their U.S. store policy.

 

 

Originally reported by the Wall Street Journal and snapshot by Nice Kicks, the new “NO PURCHASE FOR RESALE” policy states that:

 

“NIKE Stores, including any consumer rights or policies offered in NIKE Stores, are intended solely for the benefit of end consumers, and therefore purchase of products for resale is strictly prohibited. Purchase for resale means the purchase of product by someone who intends to resell the product to others (consumers, businesses or any third party). If NIKE determines that a purchase order is intended for resale, NIKE reserves the right, in its sole discretion, and as it relates to such purchase or order, to (1) suspend the application of any NIKE policy that provides a right or benefit intended for direct to consumer purchases; and (2) take any action to hinder such purchase or order (and deter future purchases or orders), including without limitation, to restrict sales to any consumer, consumer account, or member account, cancel orders, charge restocking fees, impose purchase quantity limits, decline to issue refunds or take returns, deny access to any NIKE Store, and/or suspend or close any account.”

 

In short, what this means is Nike holds all the power to determine whether an individual or even a business is reselling — yes, that means backdooring boutiques can get red flagged too. Nike hasn’t gone into detail about how they will determine if someone or some entity is reselling but the threat of suspending and even closing people’s accounts should be enough deterrent. And if that isn’t enough, cancelling orders, charging restocking fees and not issuing refunds is the cherry to top.

 

Although Nike was named the World’s Most Valuable Brand of 2022 by Brand Finance, all of this action on Nike’s part shouldn’t surprise anyone. The brand has been struggling to keep consumer trust since last year, when former Nike VP Ann Hebert’s son, Joe Hebert, was uncovered as the mastermind behind a huge reselling business that used his mom’s position and discounts to directly benefit his business. This latest move is meant to fight resellers but it’s also a huge optics play for consumer trust.

 

Only time will tell if this new policy will work and exactly how Nike will determine who is reselling and what the severity of their punishment will be.

 

Nike has also been engaged in legal trouble this entire year as rival adidas has sued them for copyright infringement and they themselves have engaged in lawsuits with StockX for not only selling fake Nikes but also NFTs.

 

Photo via Complex