Peloton Partners with Amazon to Sell Equipment & Apparel on the Platform
Aug 24, 2022 By MarketDepth
Peloton (PTON:NYQ) has partnered with Amazon in an attempt to increase its customer base as sales and its stock price falls. Peloton which exploded in sales during the pandemic is now seeing its revenue flatline, which has pushed them to seek alternative options than just their direct-to-consumer model.
Peloton stock is up 18% intraday but is down almost 65% on the year with the steep decline in sales.
The company is going to push their original bike and Peloton Guide on Amazon’s platform to help broaden its consumer base. The more premium equipment are not destined for Amazon just yet as they test the waters with their original products.
“Expanding our distribution channels through Amazon is a natural extension of our business and an organic way to increase access to our brand.”Kevin Cornils, Peloton chief commercial officer, said in the statement
Peloton is trying to push its products to a new market and Amazon controlling 38% of U.S. retail e-commerce sales this year its a large audience to capture. Currently, Amazon sees about half a million searches a month for peloton products so both companies see a large opportunity for the partnership.