Financial Inclusion

Mobile-Shopping App Boxed Raises $6.5 Million Sets Out To Compete With Amazon Prime

Wholesale enthusiasts will now have a new and possibly cheaper mobile shopping option than Amazon's $100 per year service Prime. Boxed, the "Costco of mobile apps," has just raised $6.5 million in its quest to the biggest player on the block when it comes to bulk, cheap consumer packaged goods--delivered for free, in two days.

Boxed offers savings over a store that are comparable to what most large-box wholesale retailers like Costco, Sam's or BJ's offer--25 percent to 50 percent savings when compared to most stores, with the added savings of the gas it would have taken to drive to one and the time spent browsing the shevles trying to find just the right set of bulk goods. Apart from the brand names of bulk, top sellers for the site also include warehouse sized bags of organic hemp or chia seeds-- the types of goods one generally pays a rather healthier sum for when shopping at a location like Whole Foods.

More surprising, however, is by how much Boxed also undercuts Amazon pricing. Apart from offering the same two day shipping without the $100 dollar annual membership fee, the goods on Boxed are also much cheaper. Examples cited by Forbes include a 12 pack of Bounty paper towels, which  is $17.99 on Boxed and $33.27 on Amazon; or a 72 oz variety pack of Annie’s Mac and Cheese is $15.49 on Boxed as opposed to $21.80 on Amazon.

The $6.5 million series A funding funding round was led by Greycroft Ventures. It will go toward expnading inventory, increasing market penetration through marketing and logistics.

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