Peloton to Sell Gear, and Apparel via Amazon as CEO Retools Strategy

by contentwriter

Author: Nat Geoffrey

Earlier this year, Peloton announced that it would be laying off a significant number of its staff due to poor sales trailing the company – as since the easing of the pandemic.

But there’s good news…

Customers can access Peloton’s bike, strength guide, heart-rate bands, dumbbells, water bottles, yoga gear, workout mats, and fitness apparel, on retail giant Amazon, as part of the company’s revitalization plan.

Peloton to sell gear, and apparel via Amazon as CEO retools strategy

Peloton Interactive Inc. has struck a deal with Amazon to offer its accessories and bicycles through the U.S retail giant’s distribution channels. 

This comes as a major part of Peloton’s plan to recoup – after experiencing declining sales following the ease of the COVID pandemic.


The deal to open an American storefront on Amazon’s thriving marketplace will aid Peloton in expanding its distribution channels and making products more readily available for consumers.

This partnership is Peloton’s first. Up until now, products and wares were only available through its website and physical showrooms.

We intend to meet our buyers wherever they are, and currently, our customer base is using Amazon,” Peloton’s COO (Chief Commercial Officer), Kevin Cornils said in a statement Wednesday.

The fitness gear company said it was outsourcing its delivery work to third-party dealers, and would considerably reduce the number of physical stores available in the United States.

So far, Peloton has struggled to get through this year with slowing demand, an inventory buildup, and stock value falling over 88%. But the news of the Amazon deal sent company shares up 20% to 13.48 – the biggest one-day jump in over 6 months.

Products available at the Amazon launch include Peloton’s original bike, strength-training guide devices, dumbbells, water bottles, and the Peloton workout mat.


As the revenue generated from the Amazon opportunity presents itself, Peloton said product delivery will become available in more locations around North America

Why did Peloton sales drop?

Peloton, whose stock has fallen to less than two-thirds of its value since last year, reported a revenue of $965 million, down from $1.2 billion in the same quarter of 2021. 

“The balance sheet issue is managing our inventory,” said Barry McCarthy, Peloton’s Chief Executive Officer and former Chief Financial Officer at Netflix and Spotify.

“Currently we hold too much for our run rate of business, and this is costing us much more than we can handle, forcing us to redesign our capital structure.” Luckily, the risk is minor, and we’re sure the inventory will eventually sell, said McCarthy.

Earlier this year, Peloton informed its staff of an upcoming workforce evaluation and eventually laid off thousands of workers. While also planning a massive production curb due to the increasing slump in demand.


McCarthy has said Peloton expects to turn revenues of $675 to $700 million in the fourth quarter of 2022. 

Additionally, the company is redesigning its bike line, and now enabling users to assemble products at home while allowing customers to customize its contents to competition’s workout machines.

Peloton also revealed its recently signed deal with Goldman Sachs and JPMorgan Chase, to borrow $750 million over a five-year term loan.


Peloton said it expects to turn revenues ranging from $675 to $700 million by the fourth quarter of the year, going below analysts’ estimated average of $900 million.

The company also debunked claims of seeking an ownership change but admitted it may sell as much as 20% of its stake to outside investors willing to help foster its current recovery strategy.


You may also like