What: The deal reflects Nordstrom's strategy to massively expand its digital assortment from 300,000 items to 1.5 million. To reach this goal, the retailer is establishing new deals with brands and doing more drop shipping, and even taking financial stakes in brands (like it did with Asos, which owns the Topshop).

Why it is important: Nordstrom.com seeks to capture a greater share of wallet from current customers and a new audience of sports fans with lower price offerings. Fanatics has similar arrangements with Walmart, Kohl’s, Amazon, and as of a month ago, Macy’s.

Nordstrom.com is now offering a significant portion of Fanatics’ array of professional and college sports team merchandise. Nordstrom will power the front-end digital customer experience. The orders get fulfilled and shipped by Fanatics. Only nordstrom.com will carry the products, but down the road, it’s possible Nordstrom brings its Fanatics assortment to Nordstrom stores and possibly rack.com.

This is the first time Nordstrom is starting with a 100% drop shipping model.

Nordstrom Appeals to Sports Fans With Fanatics Partnership 

Nordstrom Teams Up with Fanatics to Expand into Licensed Sports Fan Product Category for First Time