Boxed, Inc., a company that develops technology for the retail and e-commerce industries, announced today that Boxed Market, its rapid delivery service for fresh goods, is growing. To better service its Westchester County clients, Boxed Market has just built a new fulfillment facility in Elmsford, New York.
What is Boxed?
Boxed is both an online retailer and a platform for online shopping. The business runs an online store that sells household and business clients bulk pantry essentials without requiring them to be members of “big-box” retailers. The Company’s custom-built storefront, marketplace, analytics, fulfillment, advertising, and robotics technologies fuel this service.
How Boxed will expand delivery beyond Manhattan?
- Boxed, Inc., an online retailer, is expanding the geographic reach of its quick delivery service outside of Manhattan, New York City. In addition to opening a second fulfillment center in Brooklyn on November 1st, Boxed Market has just built a new fulfillment center in Elmsford, New York, that will serve clients in Westchester County.
- Boxed Market will use bicycle couriers to conduct deliveries in Brooklyn, just like it does in Manhattan, and offers fresh grocery delivery in less than 60 minutes. Deliveries will leave the Elmsford facility by automobile.
- MaxDelivery, one of the earliest on-demand grocery delivery services that offer New Yorkers a wide selection of groceries delivered to their door in under an hour, was acquired by Boxed in December 2021. Customers adored the 18-year-old company’s “no product substitutes” philosophy, so earlier this year it changed its name to Boxed Market.
Given that Boxed Market has been gradually expanding its variety and products to keep up with consumer demand, the new fulfillment center in Westchester County is bigger than the one that already exists in Manhattan.
How will they work it out?
According to Chris Siragusa, SVP of operations at New York-based Boxed Market are beyond pleased to expand their rapid fresh grocery delivery beyond Manhattan, starting with the Elmsford facility.
- Customers in Westchester County will be able to choose from more than 10,000 items and be confident that the goods will be fresh when they arrive in under an hour.
- There will be a small walk-in area in each new warehouse where consumers may pick up their orders or have them assembled.
- Additionally, customers have a limited number of grab-and-go options to choose from. Beginning early next year, Boxed Market will open some of its storefronts to allow clients to shop alongside their personal shoppers.
What made Boxed take this step?
- Since its founding in 2004, Boxed Market has processed millions of orders while continually providing clients with top-notch service. Due to its high average order value of about $100, Boxed Market sets itself apart from other rapid delivery companies and has a history of outstanding unit economics.
- Additionally, Boxed Market only uses full-time W-2 employees rather than 1099 contractors, enabling it to consistently provide high-quality service and foster customer loyalty. Approximately 98 percent of purchases come from returning customers each year.
- While Boxed Market will employ bikes to deliver packages throughout Brooklyn as well as Manhattan, deliveries done outside of the Elmsford facility will be made by car. Customers in both of the new sites will receive their purchases in less than an hour, just like in Manhattan.
- Additionally, a small selection of “Grab and Go” items will be available for consumers who only need to pick up something quickly. Boxed Market anticipates allowing clients to shop in some of its stores alongside its personal shoppers starting in 2023.
According to Alison Weick, president of e-commerce at Boxed, the rapid delivery industry in New York City has been under a lot of pressure in 2022, but Boxed Market, under Chris’ guidance, has built a tremendously effective formula in Manhattan. They are eager to duplicate this effective formula in Westchester first, then Brooklyn soon, and are currently reviewing additional neighborhoods for 2023 consideration.