Why Direct-to-Consumer (D2C) Brands Like Peloton Cannot Ignore Online Marketplaces Like eBay and Amazon

Peloton Interactive Inc, the brand that essentially re-invented the home exercise bike, has announced it will start selling its “bikes” and accessories on Amazon.com. This is a significant move for the company that previously only sold direct-to-consumer via its own eCommerce channels and retail stores.

Ironically, for a company that sells stationary bikes, Peloton has been on a bit of a journey in recent years. The company saw incredible growth during the Covid-19 pandemic, with lockdown closing gyms and forcing people to look for alternative exercise options. However, as the world emerged from the pandemic, it has struggled to maintain traction, with media reports highlighting how the company lost more than half of its value in recent months.

Peloton’s changing fortunes have forced the company to cut staff, close retail locations, and consider alternative routes to market, including Amazon. The company has also outsourced delivery of its exercise machines to third-party organisations.

Online Marketplace Sales

By opting to sell on Amazon, Peloton now has access to hundreds of millions of global consumers, including close to 150 million Amazon Prime subscribers in the United…