Peloton begins selling its fitness equipment on Amazon, the first major milestone for the currently struggling company. This partnership can help increase sales.
Peloton, which has been struggling lately, has just signed an agreement with Amazon to sell a range of devices and other fitness accessories on the American giant’s trading platform, according to CNBC. The maker of connected bikes and other fitness equipment is facing a sharp drop in sales as people return to gyms. This partnership with Amazon marks the first time that Peloton has sold devices outside of its website and stores. All equipment ordered on Amazon has free delivery and assembly, as well as directly on the site.
Peloton starts selling its sports equipment on Amazon
“We want to make it very easy to have Peloton,” Peloton commercial director Kevin Corniels told CNBC. During the pandemic, the company faced a large increase in demand for its products, which was difficult to meet. Today, it faces the opposite problem: overstocking. Peloton is experimenting with new methods to boost sales, including bike rentals and partnerships with universities and hotels. Despite these efforts, sales and subscriptions remained stagnant.
Great first step for a company currently in trouble
The company announced that it will stop manufacturing its own bikes and other devices this summer, which has led to the layoff of 600 employees at the Tonic plant. A few weeks ago, the company also laid off 780 other employees, closed a large number of outlets and increased the prices of some of its products. It has also announced that it will no longer ship its devices itself and is turning to a third party company for the logistics of the latest shipping segment.
This partnership can help increase sales
A few months ago, the Wall Street Journal reported that Amazon was in talks with Peloton about a potential takeover of the company. It didn’t seem to work, but Peloton’s ever-increasing sales success on Amazon could pave the way for a collaborative effort.