Dive Brief:
- Growing its preowned offerings, Peloton on Tuesday launched an equipment and accessories resale marketplace called Peloton Repowered, the company confirmed to Retail Dive.
- Currently in beta, the resale offering is only eligible for sellers located in the Boston, New York City and Washington, D.C. metro areas The marketplace, which will expand nationally in the coming months, seeks to connect buyers and sellers in the same metro area, Peloton told Retail Dive.
- At launch, the site only allows users to list items, with the ability to purchase coming in the next few weeks. Peloton Repowered sellers will receive 70% of the sale price, and successful sellers are provided a discount on new Peloton workout equipment, per the website.
Dive Insight:
Peloton’s new sales channel adds to the discounted products it sells, which already include refurbished equipment, offering a peer-to-peer preowned option.
The sellers’ discount on new Peloton equipment will range from $200 to $600 in savings, based on what type of new equipment is purchased.
In addition to the discount perk for sellers, Peloton Repowered buyers will receive a reduced used activation fee for the equipment they purchase of $45, compared to its typical used equipment activation fee of $95.
Sellers can arrange for the pickup of the purchased items with buyers or use a prepaid USPS label.
The Peloton Repowered platform works through Archive. The resale company raised $15 million in a Series A funding round in 2022 and has worked with brands including The North Face, New Balance and Dr. Martens.
Archive in February announced the completion of a $30 million Series B funding round and plans to use its capital to “further develop its resale intelligence software, accelerate its global expansion, and invest in new product innovation and services,” per a press release.
Peloton’s resale platform follows third-quarter earnings released in May, which showed a 13% year-over-year drop in revenue to $624 million. Connected fitness products revenue fell 27% and its net loss was $47.7 million. The company last month also expanded its pricing strategy by offering discounted equipment rates for eligible educators, healthcare workers, first responders and military personnel in the U.S.
The performance comes under the new leadership of CEO Peter Stern, who took on the role in January and has been a Peloton member himself since 2016.