Is Nike Just Doing the Right Thing in Parting With Amazon?

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Is Nike (NKE) - Get Report just doing the right thing in parting with Amazon (AMZN) - Get Report ? And just before the critical shopping holiday season?

The athletic giant and online marketplace behemoth announced on Wednesday that they are parting ways after spending two years in a retail-selling partnership together, with the shoe and apparel maker no longer selling directly on Amazon's website but focusing on its own online offerings just ahead of the crucial holiday shopping season.

"As part of Nike's focus on elevating consumer experiences through more direct, personal relationships, we have made the decision to complete our current pilot with Amazon Retail," the company said in a statement obtained by the he Wall Street Journal. "We will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly serve our consumers globally."

Some big brands have chosen not to sell on Amazon's platform, where counterfeit merchandise has continued to flourish and unauthorized re-sellers have offered the real thing at discounts, undercutting prices. Under the pilot program, Nike acted as a wholesaler to Amazon rather than just letting third-party merchants hawk its products.

The split is taking place as Nike recalibrates its retail strategy to focus more on selling directly to consumers rather than via third parties like Amazon. The company's stock took a hit last month after it announced that it hired former eBay (EBAY) - Get Report  CEO John Donahoe to replace longtime boss Mark Parker - a signal that it may be turning its sights to a more digital future.

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