- Nike Inc (NYSE:NKE) plans to cancel orders placed with automated ordering software or technology on its website or apps.
- The sneaker maker intends to charge restocking fees, reject refunds, or suspend accounts, the WSJ reported, if it determines the purchase is made for resale.
- Also, orders exceeding purchase limits are likely to be rejected.
- Nike laid out the rules in response to an increase in the purchase of products for resale and that are purchased by bots.
- Digitally savvy shoppers and resellers increased bot usage during the COVID-19 pandemic to secure hard-to-get items, including sneakers, toys, and gaming consoles.
- Nike received complaints from shoppers who couldn’t secure products at retail price, but they became available later through resale platforms.
- Retailers like Walmart Inc (NYSE:WMT) use software to prevent bot purchases, the report added.
- “It’s very much a cat-and-mouse game,” the report quoted Patrick Sullivan, chief technology officer at Akamai Technologies Inc (NASDAQ:AKAM), which develops anti-bot protection tools.
- According to Cowen Inc, the global sneaker-resale market is estimated at roughly $6 billion a year and could grow to $30 billion by the end of the decade.
- Also Read: Lululemon And ELF Beauty Stocks Are Looking Good For The Winter After 14,000 Teens Name Them Favorite Brands
- Price Action: NKE shares are trading higher by 0.61% at $88.53 in premarket on the last check Wednesday.
- Photo Via Company
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