Nike could be about to start canceling orders made by US customers with the help of bots. It could start closing accounts of people it thinks purchase the company's hottest limited-edition products to resell for a profit.
Nike's revised terms of sale come up short of a full solution to its reselling problem despite being applauded by many. Last week, the Wall Street Journal reported on the changes.
Nike forbids reselling in Europe and South Korea, but they don't state any consequences.
According to a current Nike technology employee, if you solve the problem with technology then you don't need to solve it with steps.
The changes to the terms of sale are good, but should have been done earlier, according to a Nike technology employee who isn't allowed to speak publicly.
The technology employee asked if we could solve the problem instead of blaming the consumer.
Insider reported on Nike's extensive patent portfolio, which includes inventions that do everything from making it easier to track inventory using computer chips to digital sneakers.
Two of the company's most popular footwear lines, the Air Jordan retro and the Nike Dunk, could be prevented by the same technology. The "cryptokicks" patent gives the ability to track the ownership of a Sneaker.
Nike did not reply to a question about whether it has begun implementing the new policy.
The change reads like a lawyerly response to an issue that was a problem a year ago when consumers were shut out of SNKRS launches.
The most coveted shoes are released on the SNKRS app. Most of the company's apparel is sold on the Nike app.
The timing of the terms of sale changes is odd because of Nike's inventory troubles. The increase in inventory was reported by Nike. Through the holiday season, Nike wants to reduce the number of sneakers and apparel it sells.
Nike's revised terms of sale have not swayed investor opinion. On Wednesday, shares went up slightly. Tom Nikic, senior vice president and equity analyst, said that the changes could do more to improve consumer perception.
"If you look on social media, sneaker blogs, or other sources of sneaker content online, you'll often see'sneakerheads' vent their frustration about how hard it is to get access to these shoes without paying a premium." It makes sense, as it likely alleviates one of the biggest sources of angst from their most loyal customers, who want to get their hands on these shoes.
It would be beneficial for Nike to show how it is making launches on its apps more fair to improve consumer perception.
She said that the SNKRS app is un-bottable. The average consumer is not aware of that.
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