Beleaguered fitness company Peloton has struck a deal with Amazon to sell a selection of fitness equipment and merchandise on the e-commerce platform, reportedCNBC. The maker of connected bikes and other exercise machines has struggled with declining sales as many people return to gyms and office life. The Amazon partnership marks the first time Peloton will sell its merchandise outside of its website and showrooms. Any fitness equipment ordered on Amazon will also include free delivery and assembly, which is the same deal currently offered on Peloton’s website.
“We want to make it as easy as possible to get a Peloton,” Peloton’s Chief Commercial Officer Kevin Cornils told CNBC in an interview. Following a sharp increase in demand for its products during the pandemic that it struggled to meet, the company now faces the opposite problem: an excess of inventory. Peloton has experimented with new methods to boost sales, including a bike rental plan and partnering with colleges and hotels. Despite these efforts, bike and subscription sales have stagnated.
The company announced it would stop making its own bikes this summer, resulting in the layoffs of 600 Tonic factory employees. Earlier this month, it slashed another 780 jobs, shut down a large number of its retail locations and increased the prices of some equipment. It also announced that it would no longer perform deliveries of its own equipment and shifted last-mile logistics to a third-party company.
Earlier this year, the Wall Street Journalreported that Amazon had been in talks with Peloton to potentially acquire the fitness company. While it hasn’t yet gone that route, the success of Peloton sales on Amazon could lead to the companies teaming up on more efforts.