Listen to this articlePeloton has established a partnership with Amazon in a move to strengthen its customer database and sustain the confidence of investors. The move came after experiencing slow revenue growth during the pandemic period and drops in its stock price. Peloton is reportedly starting on Wednesday by pushing a selection of its dedicated fitness equipment and accessories.
The company will push its selection on the website of Amazon in the United States. The most noticeable product of Peloton includes its original Bike with a retail price of $1,445. The company will reportedly sell its line of products known as Peloton Guide which costs around $295. However, the guide doesn’t include its more expensive Bike and Tread treadmill machine.
Meanwhile, the stock of Peloton invoked at least 18% in the early trading. The Chief Commercial Officer of Peloton, Kevin Cornils, issued a statement. He said there are already around half a million searches on Amazon each month for the products of Peloton. But the company had a lack of presence on the Amazon site before Wednesday. Cornils said the post-Covid retail online and in-store environment is continuously developing.
Peloton Earlier Relied on its Website and Physical Showrooms
The company is trying to understand better to ensure the future of Peloton. Cornils added that the company needs to make it possible for customers to get a Peloton. It will obviously mark the first partnership of Peloton with another retailer to sell its products. The company relied on its website and physical showrooms to directly sell products to consumers.
Peloton is devoted to strengthening its global distribution and lessening customer purchase costs to bring more profitable business. The company has dedicated around $800 million to a restructuring plan. It was the time when Peloton’s founder, John Foley stepped down from the CEO post in February. The company also tested a subscription model as another way to boost its equipment sales.
Peloton’s Share Price Dropped to 70%
The company also pushed off its entire in-house manufacturing to illustrate its supply chain. Peloton announced additional cost-cutting steps earlier this month. It includes more expulsion, store discontinuations, about-face price increase, and business departure of the last-mile delivery. However, the share price of Peloton dropped around 70% on Tuesday’s market close.
Meanwhile, the company’s market cap declined around $3.7 billion from its higher $50 billion in early 2021. Peloton isn’t afraid of taking risks to get the business back to a strengthened position. The key objective of the company is to one-day count 100 million members. The company ended its latest quarter with just 7 million members.
Peloton to Sell its Branded Items on Amazon
Moreover, Peloton has planned to sell a selection of accessories on Amazon alongside the Bike and Guide. It includes its branded cycling shoes, weights, bike mat, water bottle, heart rate armband, and yoga blocks. Consumers will also find a variety of its branded clothing, including shorts, sports bras, tank tops, jogger pants, and leggings.
Cornils also said it is an excellent beginning for the company with a digital retailer to test the waters. The company will also adjust its variety on Amazon according to people’s desires. He added that the company will discover other retailers for similar deals to enhance its reach. Amazon and Peloton will consider making the fitness company’s live and on-demand workout for paying customers of Amazon Prime.
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