Bulk-products eTailer to boost shipping volume under the new multiyear pact.
Boxed has unveiled a new multiyear collaboration with FedEx Corp. in which the carrier will now deliver most of the online bulk-products retailer’s customer shipments.
New York-based Boxed said Thursday that, under the expanded partnership, it would bolster its shipping capabilities by fully leveraging the FedEx network. Boxed noted that it had maintained a strong relationship with FedEx since the e-tailer first began shipping orders in 2013.
Boxed said it expects the new arrangement with FedEx to help grow its retail business and provide a more consistent delivery experience and better customer service.
“In this challenging supply chain environment, eCommerce companies are seeking new avenues to counter escalating costs and provide the best possible service to their customers,” Boxed CEO Chieh Huang said. “This enhanced alliance with FedEx provides us with the opportunity to address both.”
According to Boxed, the “mutually agreed upon” increase in shipping volume with FedEx will enable the retailer to cut transportation at all of its fulfillment centers; in turn, Boxed to reinvest the savings in better pricing and more promotions for customers. The new agreement also will give more Boxed customers access to daily service.
“The collaboration between FedEx and Boxed demonstrates how e-commerce providers and shipping companies can craft new solutions to meet our customers’ new demands collectively and needs today and tomorrow,” commented Ryan Kelly, vice president of e-commerce, SAM and retail marketing for Memphis, Tenn.-baed FedEx. “We’re proud of this alliance and look forward to enabling Boxed and its retailers access to supply chain flexibility and capability unrivaled in the marketplace. It is what’s next for businesses of all sizes.”
Boxed went public in December. Through its website and mobile app, the online retailer provides warehouse club-style shopping – including groceries, pantry items, household staples, HBA, office supplies, and organic and green products. Consumers and businesses can buy club-sized packages with free two-day delivery in the continental US on purchases of over $49 without the membership fees of traditional warehouse clubs. The BoxedUp loyalty program members get free shipping for a $19.98 order minimum. The company also offers Boxed Express, an on-demand delivery service for perishables. In late 2021, it entered the rapid grocery delivery arena via its first acquisition: New York City eGrocer MaxDelivery.
In reporting fiscal 2022 first-quarter results this week, Boxed said gross merchandise value (GMV) rose 19.2% year over year, fueled by escalating B2B customer demand and GMV growth in its MaxDelivery and Software & Services customer bases. Also up by double digits in the quarter, retail average order value and retail net revenue per active customer were up by double digits.
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