Estee Lauder Outsources Gloss.com E-Commerce

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Estee Lauder Companies Inc.'s ELC Online subsidiary has agreed to outsource to Global Sports Inc. certain aspects of e-commerce for cosmetics retailer Gloss.com.


Global Sports, King of Prussia, PA, will host and handle the technology platform supporting Gloss.com, plus fulfillment and customer service. It also will host the sites of Estee Lauder's Estee Lauder, Origins, M.A.C. and Bobbi Brown.


Gloss.com and Estee Lauder brands will still control design, merchandising and marketing of the sites.


The decision is meant to reduce platform development and maintenance costs for the New York-based cosmetics giant.


Estee Lauder in 2000 bought the 3-year-old Gloss.com to house nine boutiques for its house brands as well as others like Chanel.


The company on April 30 said it would take charges of $57 million for goodwill write-off and restructuring Gloss.com, including severance to 33 employees and the closure of the San Francisco office. Gloss.com operations are now in New York.


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