Amazon's difficulty controlling its marketplace may limit its ability to bring in more third-party brands like Nike:
that selling on Amazon could dilute its brand image — and it's likely one of the pilot's goals was to give Nike better control of its image on Amazon.The marketplace also features third-party sellers of Nike products and counterfeits, so the hope may have been that consumers would start buying genuine Nike products when given the opportunity, and that Nike could eliminate the other buying options when they were unauthorized or selling counterfeits.
Amazon's difficulty controlling its marketplace may limit its ability to bring in more third-party brands, which competitors could capitalize on. Amazon boasts a huge marketplace and third-party sellers make up of its sales, making it hard for the e-tailer to vet and oversee all of the listings on its platform.
This can make it easy for counterfeits and unauthorized sellers to operate on its marketplace, which leads to major brands like Nike not wanting to sell on the platform because it can impact their image. Other e-tailers have the opportunity to attract these brands if they can keep a better eye on their platforms, potentially giving them a way to win sales that Amazon can't.
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