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Peloton (PTON) adds Amazon (AMZN) as an outlet

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Fitness equipment company Peloton Interactive, Inc. (PTON) announced on August 24, 2022 an agreement to sell various of its products through Amazon.com, Inc. (AMZN). Previously, Peloton’s new products and accessories were sold exclusively through its own e-commerce place, inside sales channels and global showrooms.

Peloton says the initiative is designed to “innovate and drive growth by partnering with the world’s best-in-class e-commerce retailer.” Barry McCarthy, who took over as CEO of Peloton in February 2022, is looking to expand distribution worldwide while reducing customer acquisition costsas a formula to make his company profitable again.

Key things

  • Fitness equipment company Peloton makes select products available through Amazon.com.
  • These include the original Peloton Bike and Peloton Guide plus a variety of accessories and apparel.
  • “We want to meet consumers where they are shopping on Amazon,” says Peloton.

Meeting customers where they are

Peloton Chief Commercial Officer Kevin Cornils reports that Amazon sees about 500,000 searches per month for Peloton products, despite their previous unavailability on the site. “We want to meet consumers where they are and shop on Amazon,” he said in a press release announcing the deal.

What’s on the menu

Initially, customers shopping through Amazon will be able to order the original Peloton Bike, Peloton Guide fitness equipment, and various accessories and apparel. Prices at launch for the original Peloton Bike and Peloton Guide will be $1,445 and $295, respectively.

Customers who purchase a Peloton Bike through Amazon can choose to build it themselves or choose a professional assembly option, which is available in most of the United States. Home delivery and professional installation are offered at no additional cost.

Market reaction

Following the announcement, Peloton shares were trading roughly 18% above their previous close on the morning of August 24, 2022. Amazon shares rose slightly.

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