Nike Lays Out Plan To Prevent Bot Purchases: Report

Nike Inc 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 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 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.
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Price Action: NKE shares are trading higher by 0.61% at $88.53 in premarket on the last check Wednesday.
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