Nike is the biggest name in sports. Amazon is the biggest name in retail. As Nike permeates every aspect of sports and apparel, we took a closer look at consumers’ path-to-purchase activity from Nike.com, other popular online retail sites and then of course, Amazon. We then compared these results against the four other leading sports brands in the US to assess the greater sports apparel market. We found that while Nike leads in purchases on most marketplaces, it falls behind Adidas in the most influential one: Amazon. But the most intriguing finding (and perhaps the most actionable insight), is that nearly one fifth of Nike’s online sales driven by marketing campaigns are not rightfully attributed to those campaigns, as they take place on third party marketplaces.
Nike.com path-to-purchase analysis
We analyzed three months of path-to-purchase activity on Nike.com and found that while more than half of the visitors viewed a product page, only 10 percent initiated checkout. By investing more in the user experience to increase checkout initiation rates from 10 percent to 20 percent, Nike could potentially double their on-site sales without changing the checkout funnel at all.
Our data also indicates that Nike has difficulty converting customers on mobile browsers once they’ve started the checkout process. While 40 percent of desktop customers that added a product to their cart eventually purchased it on Nike.com, only 11 percent of the individuals that entered the checkout funnel on mobile browsers successfully converted. Nike needs to reassess its path-to-purchase experience on mobile browsers to increase performance and conversions.
Here’s a full breakdown of our path-to-purchase analysis of Nike.com
|Product View Rate||57%||53%|
|Checkout Initiation Rate||13%||7%|
|Checkout Completion Rate||40%||11%|
|Site Conversion Rate||5%||1%|
Nike product purchases on third party marketplaces
While on-site performance and conversions are interesting, sales on Amazon and other favorite sites simply cannot be overlooked. We analyzed consumer online purchases of Nike, Adidas, Reebok, PUMA and ASICS products on Amazon, Foot Locker, and Zappos throughout Q1 2016, to identify the leading brand by consumer shopping activity.
We found that while Nike dominated the share of wallet on Zappos and Foot Locker, Reebok took first place for Amazon purchases. Amazon makes up the vast majority of marketplace-driven transactions, over 80 percent to be exact, meaning that this is precisely where Nike should focus its efforts to increase product sales. If Nike were willing to partner with Amazon as it does with other marketplaces, it could potentially increase its Amazon sales by 5x. Now that’s a lot, but our analysis did not stop here.
We also looked into the effectiveness of Nike’s digital campaigns (paid search, PLA, and retargeting) in driving sales on third party marketplaces, to attribute sales to marketing efforts and assess Nike’s overall online purchases. By matching the tracking parameters from Nike’s campaigns to activity from our clickstream data, we found that Nike’s digital marketing campaigns influence an incremental 17 percent in transactions and lift the brand’s conversion rate on these sites by 18 percent. Obviously, the attribution and lift rate would be even higher if Nike’s entire distribution network, including ASOS, Macy’s, Walmart, etc, was taken into account.
If Nike had access to this data they might increase their digital marketing budgets, especially for PLAs which is the brand’s most effective advertising model for third party sales, yielding a 25 percent lift. Unfortunately, companies currently have no way of attributing offsite sales to marketing campaigns on their own, but they can with Jumpshot!
Bottom line: Our analysis of Nike’s online sales looked into on-site performance, marketplace sales, and attributed offsite sales to marketing campaigns. We found that even though Nike dominates the sports apparel market there is room for improvement, onsite and off. Our data suggests that Nike should lift the restrictions it has with Amazon, and pay more attention to the mobile-web user experience to increase performance and online sales.