Business

Boxed buys from rival Costco before hiking prices for delivery

Boxed.com, an online retailer selling discounted bulk items like paper towels and snacks, is looking to add fresh food delivery to its growing lineup.

But while it ramps up business in the new food aisle, Boxed is taking an unconventional approach: It buys the produce and other fresh items at arch-competitor Costco — and then marks up the price before delivering the good to customers’ homes, The Post has learned.

The 4-year-old startup, which describes itself as an online rival to Costco and other warehouse clubs — minus the membership fee — is offering the fresh food service in New York City, Atlanta, Boston and many areas of New Jersey.

“We always want to make sure our merchandise is cheaper, but in this case shoppers are paying for convenience,” said Boxed spokesman, Ashish Prashar.

Customers can get their orders in as little as three hours and free delivery on orders of $49 or more.

As Boxed gets its sea legs in fresh food delivery, it’s charging about an 8 percent premium to Costco prices — but claims its prices are still 15 percent on average less than FreshDirect.

Boxed’s Web site touts “Your fresh groceries are hand-picked from local stores and delivered to your door by a friendly Boxed Shopper. Freshness guaranteed!”

But there’s no mention that shoppers head to the nearest Costco store.

The grocery service will likely be rolled out next in Dallas or Las Vegas.