Table of Contents
1. Introduction
“Ecommerce coupled with hyperlocal delivery model may just be the ideal combination your twenty-first-century business essentially 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 the past sooner than anticipated. And the same goes for businesses existing today. One does not know when and how soon 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.
Hyperlocal ecommerce is best understood as an online business model in which the needs and demands of customers are quickly met through local offline shops via a hyperlocal ecommerce platform. A hyperlocal delivery model is a natural ingredient for hyperlocal ecommerce to take place. It's marketplace enables the customers to choose and buy products from closely located and nearby shops.
A hyperlocal ecommerce model has two fundamental dimensions to take care of- geographical proximity and time taken to deliver. This is because a business adopting this model effectively and speedily meets the needs of the customers who are in close proximity or within a well-defined area. The model per se, helps the customers to connect with local stores of particular geographical regions and gives them a better experience of shopping by providing them with lightning-fast delivery of the purchased products.
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 Furor?
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 its potential for growth and scalability prospects, among others.
- 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
- 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 ecommerce businesses
5. Learning About its Increasing Popularity
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 adopt this model 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 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.
- Instacart, an American delivery company based in San Francisco, United States offers same-day grocery delivery and pickup services. It partners with local grocery stores to fulfill orders and facilitates delivery through its network of shoppers.
- Shipt is an American membership-based delivery service that specializes in grocery delivery. Shipt delivers from local stores and provides same-day delivery options.
- DoorDash of US, is primarily known for its food delivery service. However, it has also expanded to offer other hyperlocal delivery services, including grocery and convenience store deliveries.
- Postmates is an on-demand delivery platform that offers a wide range of delivery services, including food, groceries, alcohol, and more. It partners with various local stores and restaurants in the US.
- Deliveroo is a United Kingdom based food delivery platform that partners with restaurants to offer delivery services. It has expanded beyond traditional restaurants and now operates in multiple countries.
- Glovo is a Spanish start-up that provides on-demand delivery services for various products, including groceries, pharmacy products, electronics, and more. It operates in several countries across Europe, Africa, and the Americas.
For offline retailers and physical retail chains, this model has come as another opportunity to redefine their physical presence. Adopting it makes their online presence noticeable and far reaching.
There shouldn’t be an iota of doubt about the fact that online businesses with a hyperlocal affiliation 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 ecommerce'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 this model? Or, what are the benefits associated with it?
They are a plenty, in fact. Let us find out.
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 catalog is better able to meet the varying needs of the customers.
- No Additional Investments
Joining hands with a marketplace owner can be a boon and real cost saver for your businesses. With a hyperlocal marketplace, 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 only 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 is futuristic and knows the market like the back of its hand, it is 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 model is perfectly suited to match the delivery requirements of customers residing in geographical proximity. They can schedule their deliveries as per their needs. A customer who wants a gift to be delivered to his friend on his birthday, which is tomorrow, can make an order today itself, leaving the rest to the partnering platform. 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 on board are not too high and the onboarding process is simple, even 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 of ecommerce delivery solution and the hyperlocal model that businesses are resorting to, so often.
7. How To Go Hyperlocal?
If you are eager to offer your products to customers at a lightning pace and are willing to adopt a hyperlocal business model for yourself, then here is precisely what you can do.
- Decide the products you want to deliver
- Choose your target market
- Partner with an efficient and futuristic hyperlocal delivery solution provider
- Choose a suitable revenue model
- Get onboard and get going
Read more about how to start a hyperlocal delivery marketplace
8. Future Of Hyperlocal Ecommerce Business Model
The future for hyperlocal businesses, it would be rational to state, is highly promising. Since the model finds close geographical proximity with the customers and sellers, it is becoming a rage the 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 center 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.
9. Conclusion
Large ecommerce players, 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 customer convenience and improved digitalization of the highest order, and there is no other future for businesses, except hyperlocal.
‘Yes, pretty much inarguably, the future is hyperlocal!’
