The American connected bicycle specialist has entered into an agreement with Amazon to sell bicycles and certain fitness accessories on the e-commerce platform. Until now, the brand had never used third-party distributors to sell its products.
The “Netflix of the bike” has just announced a small revolution. Peloton, the New York company specializing in connected bicycles, has announced a partnership with Amazon to sell some of its products on the e-commerce site. Until now, the firm only sold its products on its own site and in its stores.
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According to the Bloomberg agency and the CNBC channel, Peloton will therefore sell exercise bikes and other fitness accessories on the American site of Amazon in order to expand its customer base in the United States and to make its products more accessible. This is the first partnership between Peloton and a third-party distributor. Around 10:30 a.m. New York time, shortly after the announcement, Peloton stock took nearly 17% on Wall Street.
This new distribution channel will provide additional exposure to the brand’s fitness equipment, which has been struggling for several months.
Make it easy to buy Peloton Bikes
Peloton will offer for sale, among other things, its entry-level exercise bike, “Bike”, sold on its site at 1,445 dollars. “Peloton Guide”, a connected camera for doing sports at home, sold for $295, will also be available on Amazon’s American site, according to CNBC.
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According to Peloton’s chief commercial officer, Kevin Cornils, quoted by CNBC, there are already 500,000 searches per month on Amazon for Peloton products, even though the brand is not offered there. “We want to make buying a Peloton device as easy as possible,” he told the outlet.
Cost reduction
Barry McCarthy, CEO of the firm since February, is working to turn the company around, once boosted by the health crisis, but whose sales had slumped with the reopening of fitness rooms. In July, the firm had lost nearly 90% of its stock market value over one year.
Last July, the firm announced that it was ceasing to manufacture its connected bikes and treadmills to outsource production. The peloton had also announced lower prices for its equipment and plans to cut nearly 800 jobs, among measures put in place to reduce costs and losses.
