Dive Brief:
- Following a round of reported layoffs earlier this month, Peloton announced Wednesday that it is now selling fitness devices, accessories and apparel on Amazon’s U.S. website, according to a company press release.
- Bike delivery through Amazon store purchases will be available in most of the U.S., and customers can choose between self-assembly or expert assembly for no additional fee, per the release.
- The line of products sold on the fitness company’s new Amazon store includes its original stationary bike, the Peloton Guide strength training camera, cycling shoes, dumbbells and more. The deal marks the first time Peloton will sell outside of its DTC channels.
Dive Insight:
Peloton’s latest announcement marks a huge change to its distribution model following months of turmoil and poor earnings results.
"Expanding our distribution channels through Amazon is a natural extension of our business and an organic way to increase access to our brand," Peloton’s Chief Commercial Officer Kevin Cornils said in a statement. "We want to meet consumers where they are, and they are shopping on Amazon. Providing additional opportunities to expose people to Peloton is a clear next step, as we continue to generate excitement for our unparalleled connected fitness experience."
Earlier this month, the fitness equipment brand reportedly laid off about 800 employees and announced plans to shutter many of its retail showrooms, all while hiking prices on some models in the U.S., Canada, the U.K., Germany and Australia.
This followed the appointment of a new CEO in February, along with a 20% reduction of its corporate workforce. The company reported a $757 million net loss in its most recent quarter.
Peloton faces a shift in consumer sentiment about at-home fitness equipment, as people are going back to traditional gyms following the height of the COVID-19 pandemic. Data from market research firm Mintel in March showed that only 15% of exercisers felt that digital fitness platforms eliminated the need for in-person gyms.
Inflation is also taking a toll on shoppers’ purchasing decisions, leading to a decrease in spending on discretionary items. As consumers spend more to get less, Peloton is looking for ways to broaden its core customer base.
