Table of Content
1. introduction
“Ecommerce coupled with hyperlocal delivery model may be the ideal combination your business requires.”
Ecommerce is changing fast; and we are living in an era of quick commerce. The way business was being done yesterday has become a thing of past sooner than anticipated. And the same goes for businesses existing today. One never knows when and how sooner the business paradigm can change. Such a change is specifically being witnessed in on-demand delivery businesses, and the credit must be given to the hyperlocal business model.
A hyperlocal delivery model is defined as an online business model in which the needs and demands of customers are met through local offline shops via a digital platform. A hyperlocal delivery model is a natural ingredient for hyperlocal ecommerce to take place. A hyperlocal ecommerce marketplace enables the customers to choose and buy products from closely located and nearby shops.
Similarly, a hyperlocal delivery marketplace, also called hyperlocal ecommerce marketplace, is an online multi-vendor marketplace that serves a local-within-local market too closely, or in an area that is considered to be small or too localized so much so that it successfully meets the needs of specific customers.
A hyperlocal ecommerce business has two fundamental dimensions which it takes care of geographical proximity and time taken to deliver.
This is so said because a business adopting a hyperlocal model effectively and speedily meets the needs of the customers which are in close proximity or within a well-defined area.
The hyperlocal ecommerce system helps the customers to connect with local stores of particular geographical regions and gives them a better experience of shopping by providing them fast delivery of the purchased products.
2. Features of a good and promising hyperlocal ecommerce Software
2. Features of a good and promising hyperlocal ecommerce Software
- Aesthetically appealing and attractive dashboard
- User friendly interface
- Simple sign up
- Instant ordering and approval facility
- Live order tracking
- Quick delivery
- Real time location tracking
- Route optimization
- Advanced payment services and options of payment gateways
- Advanced and intelligent product search options
- Huge database of customers
- Driver wallet management
- Instant notifications
- Reviews and feedbacks
3. Why is hyperlocal ecommerce marketplace becoming a furore?
3. Why is hyperlocal ecommerce marketplace becoming a furore?
The below mentioned importance may be few of the many reasons that have resulted in increased hyperlocal e-commerce transactions.
- It has proved to be a boon for local stores in terms of reaching out to customers, potential for growth, etc.
- It gives customers a better shopping experience.
- It ensures faster delivery of purchased products to customers.
- It results in rapid increase of sales and revenue which further helps retailers to grow their business easily.
- It has a significantly wide outreach.
- It helps businesses get closer to the target market as well as the prospective customers.
4. Factors behind the whopping rise of hyperlocal ecommerce
4. Factors behind the whopping rise of hyperlocal ecommerce
- Increasing number of mobile internet users
- Improvement in logistics infrastructure
- Growing smartphone adoption
- Sedentary habits of consumers
- Improved lifestyle quotient of consumers
- Changing consumer preferences
- A felt need for urbanization
- Increase in business digitalization
- High funding for e-commerce businesses
5. Learning about the increasing popularity of hyperlocal ecommerce
5. Learning about the increasing popularity of hyperlocal ecommerce
Disrupting traditional business practices and uprooting several market taboos, hyperlocal ecommerce has come barging in. Ever since the concept has come into existence, it has evoked great curiosity and interest among consumers and businesses alike. While on one hand, consumers are resorting to more and more hyperlocal deliveries every day, on the other hand, businesses are leaving no stone unturned in ensuring their strong association with hyperlocal platforms which by virtue of their specialization in hyperlocal deliveries, can help them build and facilitate a robust hyperlocal ecommerce network.
Though not all, but a fair number of global businesses, of all sizes and nature, have taken to hyperlocal deliveries as a mainstream and fundamental aspect of their business. The need to go hyperlocal was felt by businesses a few years ago when they witnessed dramatic changes in the way consumers buy. It started to gain popular interest. This need was reinforced with the introduction of covid-19 pandemic in the year 2020. Had it not been for the pandemic and contactless deliveries, hyperlocal delivery figures through hyperlocal ecommerce platforms would definitely not have skyrocketed the way they did.
Hyperlocal utility services are expected to gain an increased traction and this can be primarily attributed to the growing disposable income of consumers, rise in working population and a greater need for convenience, as per a report published in Dentsu.
The rate of hyperlocal services adoption and accelerated growth in e-commerce industry has led to a big paradigm shift in the way global consumers shop, with first-time hyperlocal ecommerce users rising during the lockdown and contactless delivery and digital payments becoming the new norm.
In the similar report it was found that local food delivery stood out as the top-most used hyperlocal service, followed by local logistics and groceries and vegetables. Meanwhile, 33% of those surveyed said they use such services for their speed, while 27% attributed unique product and service offerings as a key reason to use such service.
- Brands like Grofers and Amazon were the leading players initially, setting up their warehouses instead of partnering with retailers.
- Swiggy, a popular food-delivery app, initially, has launched swiggy stores with retailer partnerships. Now, it is pivoted to develop stores to stock products.
- Walmart-owned Flipkart made several efforts to work with retailers in order to deliver grocery orders, but launched Supermart, which also relied on its own warehouses.
- Currently, Grofers runs on a model where it sets up large and mini-warehouses within cities. The mini-warehouses are managed by distributors who fulfil their deliveries to keep costs in check.
For offline retailers and physical retail chains, the hyperlocal model of business functioning has come as another opportunity to redefine their physical presence. Adopting it makes their online presence noticeable.
There shouldn’t be an iota of doubt about the fact that hyperlocal ecommerce businesses have been rapidly growing with the potential of expanding exponentially. There has been an increase in the number of brands emerging in this space and given its quick rate of adoption, both by businesses and consumers, it has the potential to consolidate even further, over the next few years. Hyperlocal’s collaboration with local stores and the connect they build with their customers digitally is benefitting all the stakeholders as now they are all connected to the supply chain model.
So, how benefitted can a business be, post the adoption of a hyperlocal ecommerce model?
Or, what are the benefits associated with hyperlocal ecommerce? They are a plenty, in fact.
6. Hyperlocal ecommerce: Going deep into exploring the benefits of this new norm
6. Hyperlocal ecommerce: Going deep into exploring the benefits of this new norm
As big as the hyperlocal ecommerce industry is getting, so are the benefits accrued to it. Let us know a few of them.
- Quick Product Deliveries
Speed delivery is one of the most distinguishing features of a hyperlocal model. Being located geographically close to the customers, hyperlocal businesses can achieve speeds that conventional marketplaces cannot offer. Across the globe, hyperlocal businesses are supporting communities better than the conventional ecommerce marketplaces by virtue of their ability to deliver the goods and services in the shortest possible time. Ensuring a quick delivery mechanism saves a lot of time and effort which then goes into other important business processes. This makes the whole hyperlocal business model highly efficient.
- Diverse Product Catalogue
Hyperlocal ecommerce marketplaces have made it way easier for businesses to present and flaunt their offerings online in front of a large group of customers. Since everything is available on the online platform, businesses are better able to put their best foot forward by easily, neatly and categorically displaying a wide range of their products and services. This makes it easy for the customer to go through the product portfolio, compare features and benefits and make a choice accordingly. They don’t have to run from one store to another in order to get what they want. A diverse product catalogue is better able to meet the varying needs of the customers.
- No Additional Investments
Joining hands with a marketplace owner that offers you a hyperlocal ecommerce software to work with, can be a boon and real cost saver for businesses. With a hyperlocal marketplace, the local retailers and sellers get a platform to offer their products without setting up their stores online. This saves a lot of money that businesses could have otherwise incurred. Not just this, but businesses are also prevented from incurring any additional overhead costs.
- Better Inventory Management
Overstocking and understocking may often be a problem that several businesses face throughout their lifetime. Hyperlocal ecommerce helps in overcoming such problems. Since hyperlocal ecommerce software are futuristic and know the market like the back of their hand, they are in a better position to figure out the amount of inventory that should be kept in store. It sort of makes you become smart with storage; thereby leading to improved inventory management.
- Customizable Delivery Timings
A hyperlocal business model is perfectly suited to match the delivery requirements of customers residing in geographical proximity. Moreover, several hyperlocal ecommerce marketplace owners, have it in their software, where customers can schedule their deliveries as per their need. A customer who wants a gift to be delivered to his friend on his birthday, which is overmorrow, can make an order today itself, leaving the rest to the concerned business. Scheduling as per convenience is a luxury that is often denied to conventional ecommerce players.
- Support Local Businesses
Hyperlocal ecommerce platforms have emerged as great supporters of local businesses. Since the costs of coming onboard are low and the onboarding process is simple, even the small businesses can think about it. Moreover, by virtue of having a geographical closeness to both consumers and local businesses, such a model empowers the local retailers to go hyperlocal. Several ailing businesses and new start-ups have found a new lease of life for themselves, courtesy to hyperlocal ecommerce software and the hyperlocal model that businesses are resorting to, so often.
7. How to go hyperlocal?
If you are eager to offer hyperlocal services and are willing to adopt a hyperlocal business model for yourself, then here is what you have to do-
- Decide the products you want to deliver
- Choose your target market
- Partner with local merchants
- Choose a suitable revenue model
- Get a hyperlocal delivery app
- Select a logistics technology partner
Read more about how to start a hyperlocal delivery marketplace
8. Future of hyperlocal ecommerce Business model
8. Future of hyperlocal ecommerce Business model
Future for hyperlocal businesses, it would be rational to state, is highly promising. Since a hyperlocal business model finds close geographical proximity with the customers and sellers, it is becoming a rage world over, even more so after the pandemic struck all of us. Hyperlocal businesses hold the following prospects. Take a look
- Hyperlocal delivery of non-essential products
Some retail outlets have expanded their ambit of hyperlocal deliveries beyond what they used to sell. It can increase all the more, given the widespread impact of adoption of hyperlocal business model. For instance, retailers may move from selling accessories to clothing, cosmetics, etc.
- Hyperlocal deliveries will move to rural areas
Rural areas have not yet had a proper share of their hyperlocal deliveries. But with the growing outreach of hyperlocal ecommerce and the pace it has gained lately, rural areas are likely to have a taste of it pretty soon. Several two-tier and three-tier under tapped cities can also benefit from the hyperlocal model of businesses.
- Retail outlets will expand their storage capacity
A highly promising business model encourages retailers to keep and store more and more inventory, in order to meet the soaring customer demand. Hyperlocal ecommerce is one such model. To satisfy omnichannel customer needs, retail stores are more likely to try and lay their hands upon expanding their storage space near their physical locations in the future.
- Use of AI will grow and businesses will become smarter
Internet and digitalization have been at the centre of all the hyperlocal ecommerce revolution that is happening around. Several technology intensive businesses are most likely to use artificial intelligence in their business processes. AI adoption by local retail businesses is expected to increase. This increase in AI-backed processes will lead businesses to get smarter than they are today.
- Use of delivery robots and drone services
As hyperlocal markets get well curated, highly specialized and diversified, the logistics businesses have a possibility of leveraging delivery robots and air drones in order to make convenient and faster deliveries.
Final Words
Large ecommerce marketplaces, who haven’t yet entered, are observing the hyperlocal space keenly and may even be relentlessly strategizing to foray into it. Before they do that, ambitious start-ups and aspiring entrepreneurs, it is suggested, should do it in order to get the first mover advantage that they can be deprived of post the entry of bigger players; because the early bird, as they say, catches the prey.
But until a conclusion, whether ‘to go’ or ‘not to go’ hyperlocal is reached, it is urged to keep the following small statistic in one’s conscious thoughts;
“Growing at a compound annual growth rate (CAGR) of 14.9% from 2021 to 2030, the global hyperlocal service market size which stood at $1714.60 billion in the year 2020, is projected to reach $5188.60 billion by the end of 2030.”
And know this for sure, that we are living in an era of utmost customer convenience and improved digitalization and there is no other future for businesses, except hyperlocal.
‘Yes. Hyperlocal is the future!’
