(Filed Under Financial and General Interest News). American Apparel will be launching an e-commerce site hosted by eBay this September, paying the auction site commissions from sales for the hosting and prominent placement.
"There are more than 30,000 searches for American Apparel on eBay each month and right now those customers are not buying from us directly," stated Dov Charney, chief executive officer and founder of American Apparel. "I’m excited to connect that demand with our vertically integrated production and distribution platform to create a new revenue channel for American Apparel."
The American Apparel online shop will be easily accessible through a link on eBay’s home page. The store will feature American Apparel’s signature items, photography and standard retail prices. Online checkouts will be completed using eBay’s interface, but orders will still be filled and shipped by American Apparel’s distribution center.
Both eBay and American Apparel wish to capitalize on each others’ demographics to increase sales, including American Apparel’s core of computer-savvy shoppers in their early 20s and eBay’s large number of users in Middle America.
This new venture is part of a movement to strengthen sales for Los Angeles-based American Apparel, which avoided a bankruptcy filing in early 2011 with the help of Canadian investors. American Apparel is also planning on launching spaces within U.S. and U.K. department stores as well as several stand-alone European flagship locations.
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