Peloton’s sales have been dropping since 2021. To avoid bankruptcy, the company is partnering with Amazon to widen its consumer base and deal with its insanely high supply of inventory. As Peloton’s stock prices plummet, it hopes that Amazon will buy their product and make up for some of the losses.
Starting Wednesday, Peloton products will be available on the Amazon website. Examples of such items include the company’s connected fitness equipment and accessories like its fitness trackers. The standard Peloton Bike can also be found on Amazon for $1,445, making this the company’s first venture into third-party e-commerce marketing.
Peloton saw a surge in sales on its website as they were missing out on potential customers. As the company’s sales plummeted, they released their products onto Amazon which may help save their reputation and maintain their stock value.
The company is looking to expand, hoping to establish relationships with e-commerce retailers. CEO John Cornils stated that because of the post-vaccination society there has been a “declining market” which has impacted the company.
When Peloton sales took off in 2020, the company believed its business practices were solid. Its shares soared and became more valuable when it changed its pricing to exclusively offer products on its own website.
The company lost its financial equilibrium, so the new CEO planned to expand the company in an effort to regain that balance. The retail expansion included a large push into international distributions, with Amazon providing steady revenue.
He started out by testing a subscription service for Peloton bikes. This was an experiment to see if they would sell well, but when the company found their sales had declined they got the idea to implement subscription services in order to recover some of their losses.