Peloton (PTON) Adds Amazon (AMZN) as Sales Outlet – Investopedia
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.
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.
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.
Cision PR Newswire. "Peloton Launches Products, Apparel and Accessories in Amazon's U.S. Stores."
CNBC. "Peloton Strikes a Deal to Sell Fitness Equipment and Apparel on Amazon."
Stocks & Bond News
When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site.