business news in context, analysis with attitude

• The Portland Business Journal reports that sneaker maker Adidas AG is instituting a global policy similar to one that actually has been enforced in the US for almost two years - banning any of the retailers that carry its products from offering them for sale on third-party e-commerce sites.

According to the story, the initiative "is billed by the German sporting goods giant as a move to improve customer service and create the best possible brand experience for online shoppers. But some e-commerce analysts view it as drawing a line in the sand, particularly as it relates to how manufacturers deal with Seattle-based Amazon."
KC's View:
It isn't like you can't buy Adidas products on Amazon - there are tons of them on the site. But what Adidas wants to avoid is third party sales on the site, in part because it wants to control the so-called customer experience, but also probably because it knows that third party sales on Amazon can lead to prices being driven down in a highly transparent way.

Just one of the new problems that online retailing can create...