Boxed is a mobile app that is taking e-commerce to the next level by disrupting the club channel.

1. Page 1© 2014 The Partnering Group, Inc. |
8170 Corporate Park Drive, Suite 310 Cincinnati, OH 45242
Phone 513-469-6840 | www.thepartneringgroup.com | © 2014 The Partnering Group, Inc.
Boxed
Mobile App
Shopper
Experience
The Partnering Group

2. Page 2© 2014 The Partnering Group, Inc. |
Boxed– How It Works
Boxed is the mobile reincarnation of Costco, Sam’s Club, and BJ’s without the
membership feeds.

3. Page 3© 2014 The Partnering Group, Inc. |
Boxed- Business Model
• Unlike Costco, which might have 4,000 or 5,000 items in its stores, Boxed
keeps about 500 SKUs available for users in its own warehouse
• Boxed is taking the contrarian approach (vs. Instacart and Google Shopping
Express) and actually holding inventory and fulfilling shipments from its
own facility.
• Free two-day shipping for orders of $75 or more.
• Boxed believes it can also save its customers time. The average warehouse
club trip lasts 100-180 minutes on average, while an order from its mobile
app can be placed in a fraction of that time.

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Boxed- Benefits

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Boxed Shopper Experience
Facebook Advertising to
drive app downloads
In App browsing experience –
Grocery Category
In App browsing experience –
Household Category

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Boxed Shopper Experience
In App browsing experience –
product details
Check Out Basket – Order
Summary
• Total Basket =
$72.45
• Boxed does
NOT require a
membership
• Free shipping
provided with
order over $75

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Competitive Analysis

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Competitive Analysis – Club Stores
Total Basket* = $62.98
2013 Sales = $74.7B
Store Count = 447
Total Basket = $62.98
2013 Sales = $13.0B
Store Count = 201
Total Basket = $61.70
2013 Sales = $57.2B
Store Count = 632
* Surveys conducted via Mobee mobile app

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Competitive Analysis - Instacart
• Total Basket = $74.45
• Instacart personal shoppers buy within
Costco
• Instacart does NOT require a Costco
membership
• Instacart provides free shipping with a
yearly membership ($99/yr.) and a
minimum order of $30
• Delivery typically within 2-4 hours is
possible depending on when order is
made

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Competitive Analysis –
Google Shopping Express
• Total Basket = $55.93 across 2 different retailers
• Note: GSE did not have any Tide Pods from Costco
so the order was split across Costco and Smart &
Final
• Current promotion with GSE provides free shipping
for 6 months
• GSE requires a Costco membership unique to the
shopper; shoppers have gamed this with dummy
Costco membership numbers
• No minimum order size with current promotion
• Delivery occurs within a 12hr. window typically
within same 24 hours depending on when order is
made

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Competitive Analysis -
Amazon
• Total Basket = $91.42
• Note: This included Tide Pods which was a
lower count (90 vs. 120) so the price
variance is even larger than reported.
• Free Shipping enabled by Amazon Prime
($99/yr.)
• No minimum order size
• 5% discount for certain products if you
sign up for continuous replenishment

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Implications
• Costco continues to be the gold standard for their ability to merchandise and create “treasure hunt”
experiences. Crowded stores, parking lots, long lines, etc. will cause shoppers to adopt mobile solutions
like Boxed but how many is still yet to be determined.
• Mobile experiences are relatively easy to navigate for shoppers no matter the application. There is little
variance and no one stands out at this point.
• Retail fundamentals like merchandising, pricing, promotions, in stocks, and search are the basic
requirements. Delivery terms, annual memberships, free shipping, and minimum orders are where the
current players are differentiating themselves as they build their loyal shoppers.
• No one is leading on new items. Brands have an opportunity to better influence this opportunity to
differentiate themselves.
• Brands must improve their content management systems to provide the most robust and compelling
content in an easy manner for mobile and online retailers. Making it easy (via APIs and easy content
management systems) for retailers will become a short term competitive advantage for smart brands.
• Pricing has greater variance than one would have assumed initially. Google Shopping had lowest prices
($56). Traditional Club Stores were next $61-63. Instacart and Boxed were ten dollars higher at $72-75.
And Amazon was surprisingly the highest at $90+ at this point in time. But pricing is very fluid and yearly
memberships were not considered.

13. Page 13© 2014 The Partnering Group, Inc. |
8170 Corporate Park Drive, Suite 310 Cincinnati, OH 45242
Phone 513-469-6840 | www.thepartneringgroup.com | © 2014 The Partnering Group, Inc.
Any Questions?
Sonny Jandial
sjandial@tpg-mail.com