Peloton and Amazon Join Forces to Sell Fitness Equipment and Apparel

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Peloton has struck a partnership with Amazon in a bid to broaden its customer base and sell more products in the United States.
This will mark Peloton’s first partnership with another retailer to sell its merchandise. Until now, the company relied on its website and physical showrooms.
Peloton Chief Commercial Officer Kevin Cornils said the company will look to other retailers for similar deals to extend its reach.

Image Source- TheStreet

In an effort to increase its client base and product sales in the US, Peloton has partnered with Amazon.
This will be Peloton’s first collaboration with a different shop to sell its products. The business depended on its website and actual showrooms up to this point.
According to Kevin Cornils, chief commercial officer of Peloton, the firm will go to other stores for such partnerships to broaden its reach.
Its original Bike, which costs $1,445 will also be included in this. The $295 Peloton Guide strength supplement will also be promoted. The cooperation excludes the more expensive Bike+ and Tread treadmills.

The price of Peloton’s shares climbed to a day-high gain of almost 20%.

Despite Peloton’s lack of visibility on the website until Wednesday, Chief Commercial Officer Kevin Cornils said there are now roughly 500,000 searches each month on Amazon for its goods.

In a phone conversation, Cornils stated that “post-Covid, the retail environment is continuing to develop, both online and in stores, and that’s something we’re trying to understand better to make sure the Peloton of the future is calibrated right for that.”

As expenses grew out of control and losses accumulated, Peloton’s creator, John Foley, resigned from his position as CEO in February, triggering the start of a $800 million reorganisation process. In an effort to increase sales, it has recently begun experimenting a subscription-based strategy for its machinery. In order to streamline its supply chain, Peloton also stopped doing all of its own manufacturing.

The company announced other cost-cutting initiatives earlier this month, including more layoffs, shop closings, about-face pricing increases, and quitting the last-mile delivery industry.

Testing the waters
Peloton will also offer a number of accessories on Amazon in addition to the Bike and Guide, such as its own line of cycling shoes, bike mat, weights, yoga blocks, water bottles, and heart rate armbands. Additionally, customers will notice a variety of its branded clothing, such as sports bras, leggings, shorts, tank tops, caps, and jogging trousers.

“With a digital store, this is a really fantastic start for us to test the waters,” Cornils said.

Peloton may eventually modify its Amazon selection as it gains insight on what customers want, he added. He said that it’s probable Peloton may seek to other merchants for comparable offers to widen its market.

Additionally, it could make sense for Amazon and Peloton to think about adding the fitness provider’s live and recorded workouts to the list of perks available to paying Amazon Prime members. Whether or whether this was a possibility was not confirmed by Cornils.

Analysts have been guessing that Peloton, under McCarthy, a content and subscription specialist, is thinking about how to expand the distribution of its material.

Customers who purchase a Peloton bike from the Amazon website will have the option of choosing self-assembly rather than booking a professional to assemble it. For those who would prefer it, there will be the option for professional assembly.

It will be a learning opportunity for the business, according to Cornils, to discover what preferences clients have and how they react to a self-assembly alternative. It’s something Peloton hasn’t previously provided, but it’s another way the business can save expenses.

According to the firm, Peloton will handle continuing customer care requests for repairs, maintenance, subscriptions, and general questions, while Amazon will handle assistance for product orders, shipping, installation, and returns.

Physical retail will always play a significant role in our approach, according to Cornils. “We are increasingly attempting to match the customer with this,” the speaker said.

Prior to the start of trading on Thursday, Peloton is scheduled to release its financial fourth-quarter results. According to Refinitiv average, analysts anticipate the business will report a loss of 72 cents per share on revenue of $718.19 million.

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