Peloton Interactive Inc. rekindles its marketing strategy and seeks Amazon.com Inc as a medium to sell in-home fitness equipment and certain accessories in the United States, infiltrating the e-commerce territory to spruce up its sales and distribution footprint and make fitness products more readily available.
The New York-based company said in a release Wednesday. The shift to come forefront of Amazon’s sprawling online marketplace outside of its years-long direct-to-consumer business rose the shares 12.4% in New York.
Peloton’s partnership with Amazon is seen as a way to broaden its customer base and win back investors’ confidence, as well as reinvigorate sales.
The products available through Amazon include the Peloton bike, priced at $1,445, and the Peloton Guide for $295. However, the more expensive Bike+ machine and treadmill are not available on Amazon but can be found on Peloton’s official site.
As with Peloton’s first-party sales, delivery and assembly are included in the bike’s pricing.
Part of Peloton adopting Amazon as a new channel to sell fitness equipment and apparel is to utilize Amazon to sell its cycling shoes, bike mats, bike weights, yoga straps and blocks, the Peloton Heart Rate Band, water bottles, and dumbbells. Apparallels also includes sports bras, leggings, shorts, hoodies, joggers, and hats.
Peloton’s chief commercial officer Kevin Cornils expressed that people search for Peloton products on Amazon despite that it lacks the presence of an e-commerce retailer. The CEO of Peloton Barry McCarthy who took over in February is committed to stabilizing the cash flow and widening its distribution globally to lower customer acquisition costs and get the company back to profitability.
Cornils as well as the McCarthy view Amazon’s greater reach as a worthy tradeoff. But, the skepticism has been there for quite a long time that Amazon is thinking to buy Peloton. Amazon later denied its involvement. But, it seems that the e-commerce giant will somehow gain valuable data about Peloton’s customer base and shipment details.