CCTV: Boxed delivers products at wholesale prices to homes through mobile app

A startup is changing the way people shop for wholesale items. As more retailers are moving away from traditional brick-and-mortar stores to smartphones and computers. CCTVs Tracy Tandon explains. Boxed, a mobile service app is a modern wholesale club that promises to do all the heavy lifting. 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 an app. Allowing customers to shop for bulk-sized goods, without going to brick-and-mortar stores
like Costco or Target. Company CEO Chieh Huang says, both the online and the offline retail industry
are very competitive. But he has a plan. We do our own kind of magic in that, we only sell what we like, and we only sell what we can get a good deal on. And so you’ll find us only with about a
thousand SKUs. Vs a general retailer which, has probably thirty thousand, or a hundred thousand, or even a million online. The company’s warehouse located
in New Jersey is its first. It has a second near Las Vegas, and plans to open two more facilities across the u.s. next year. While other wholesale companies
like Sam’s Club or Costco count the majority of their customers
to be boomers or seniors. Boxed counts Millennials to be
the bulk of its customers. A typical order is usually six to seven items, generally paper products, but this is the kind of order that I like. The orders are picked and then they come to this table and here’s where we double-check everything. You can see the boxes are made right here on site. The six or seven orders go in. We have a proprietary algorithm that tells the packer
which size box to use, and what should go in what box. Just so we’re as efficient as possible, and we can ship things in the cheapest way as possible. All of the software is owned by
the company. It’s no surprise since technology is second nature for founder and CEO Chieh Huang. He sold his mobile gaming company, Astro Ape to Zynga back in 2011. Boxed is often compared
to the online retail giant Amazon. But its CEO insists it is nothing like Amazon. The better comparison would be your local convenience store. Except it’s online, on an app, and it offers wholesale prices. We’re not trying to be Amazon. They are the everything store, we are an
online wholesale store. But more so you know, we don’t charge for memberships, and that includes two-day shipping. For about eighty-six percent of our customers they get their boxes in two days or less. Um, then also we think of ourselves as discovery shopping versus intent shopping. So the vast majority of our customers come in thinking they might need something. But kind of discovering all these awesome items that they otherwise wouldn’t have discovered. Boxed has raised over eight million dollars in funding. Mostly from East Coast investors. It’s the kind of support the company needs, if it plans to take a bite out of the 6.5 billion dollar online grocery market in the U.S. Tracy Tandon, CCTV New York.

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