Boxed delivers products at wholesale prices to homes through mobile app

Global Business

A new startup is changing the way customers shop for wholesale items. Boxed, a mobile service app and modern wholesale club offers online and smartphone services, as an increasing number retailers move away from traditional brick and mortar stores. CCTV’s Shraysi Tandon reported this story from New York.

Boxed delivers products at wholesale prices to homes through mobile app

A new startup is changing the way customers shop for wholesale items. Boxed, a mobile service app and modern wholesale club offers online and smartphone services, as an increasing number retailers move away from traditional brick and mortar stores. CCTV's Shraysi Tandon reported this story from New York.

Boxed promises to do all the heavy lifting by delivering a range of wholesale products to doorsteps across the United States in two days or less.

The company offers both convenience and savings. Through the touch of a smartphone application, customers can shop for bulk-sized goods without going to brick and mortar stores such as Costco or Target.

Company CEO Chieh Huang said both the online and offline retail industry very competitive, but he has a plan.

“We do our own kind of magic in that we only sell what we like, and what we can get a good deal on,” Huang said.

The company’s warehouse in New Jersey is its first. It has another warehouse near Las Vegas, and plans to open two more facilities in the U.S. next year.

While other wholesale companies view the majority of their customers as boomers or seniors, Boxed considers the bulk of its customers to be millennials.

All of the software is owned by the company. Huang is no newcomer to technology, he sold his mobile gaming company, Astro Ape, to Zynga in 2011.

While Boxed is often compared to online retail giant Amazon, Huang insists it is nothing like them. The better comparison would be your local convenience store, except online or on an app, and with wholesale prices, he said.

The company has raised over $8 million in funding, mostly from east coast investors. The company needs that support as it plans to take a bite out of $6.5 billion online grocery market in the U.S.