Fitness equipment company Peloton Interactive, Inc. (PTON) announced, on Aug. 24, 2022, a deal to sell a variety of its products through Amazon.com, Inc. (AMZN). Previously, Peloton's new products and accessories were sold strictly through its own e-commerce site, inside sales channels, and global showrooms.
Peloton indicates that this initiative is designed "to innovate and drive growth by collaborating with the world's best-in-class e-commerce retailer." Barry McCarthy, who took over as Peloton's CEO in February 2022, is on a drive to widen distribution globally, while also lowering customer acquisition costs, as the formula to make his company profitable again.
- Fitness equipment company Peloton is making select products available through Amazon.com.
- These include the original Peloton Bike and the Peloton Guide, plus various accessories and items of apparel.
- "We want to meet consumers where they are, and they are shopping on Amazon," Peloton says.
Meeting Customers Where They Are
Peloton Chief Commercial Officer Kevin Cornils indicates that Amazon has been recording about 500,000 searches per month for Peloton products, despite their previous unavailability on that site. "We want to meet consumers where they are, and they are shopping on Amazon," he stated in the press release announcing the deal.
What's On Offer
Initially, customers buying through Amazon will be able to order the original Peloton Bike, the Peloton Guide strength training device, and various accessories and items of apparel. The prices at launch for the original Peloton Bike and the Peloton Guide will be, respectively, $1,445 and $295.
Customers who buy the Peloton Bike through Amazon can choose to assemble it themselves or select an expert assembly option that is available in most of the United States. Both in-home delivery and expert assembly are offered at no additional cost.
In the wake of the announcement, shares of Peloton were trading on the morning of Aug. 24, 2022, roughly 18% above the previous close. Shares of Amazon were up marginally.