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Benefits of hyperlocal retail and delivery model for both consumers & retailers
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Saturday, 11 December, 2021, 14 : 00 PM [IST]
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Amit Srivastava
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Since its inception, the hyperlocal marketplace model, also known as on-demand - near me - delivery, has generated a lot of noise. The buzz is understandable because the hyperlocal delivery model provides both the supplier and the buyer with ease and efficiency at the same time.
The popularity of the Hyperlocal marketplace model is growing at a rapid rate since products are delivered to clients in a relatively shorter period. This strategy provides a wealth of opportunities for small business owners, which is why so many companies are embracing it.
Zomato, Swiggy, Dunzo, Blowhorn, Wefast, Grab, Pidge, Grofers, and other notable hyperlocal delivery startups have revolutionised the e-commerce order delivery industry. With the exception of a handful, most of these hyperlocal delivery companies have expanded to transport products other than food, pharmaceuticals, and groceries.
Hyperlocal delivery firms, like the ones mentioned above, work with e-commerce corporations to deliver a variety of goods. This not only improves the client experience, but it also saves time and money for e-commerce stores by eliminating the entire warehousing and transportation procedure. The size of the order being delivered is the only constraint for hyperlocal delivery. In hyperlocal delivery, order sizes rarely exceed 10-12 kgs.
How are retailers embracing hyperlocal?
The hyperlocal marketplace concept is a great example of how technological developments may be combined with long-standing traditional buying techniques to create a winning recipe.
A hyperlocal business is a platform that allows local offline businesses to connect with their target clients and deliver products in a timely manner. A hyperlocal business's service radius could be anything from a few metres to a few kilometres from its physical location. Because of the hyperlocal space's narrow geographic scope, local businesses are essentially guaranteed visibility and clients until they can demonstrate good product and service quality. It ensures that products are delivered quickly and from a reliable store close to the customer's home.
Benefits associated with hyperlocal delivery business model for businesses:
- Supports traditional Stores - Traditional stores have been threatened by the rise of e-commerce and online retail. Hyperlocal delivery models give them the possibility to increase their revenue.
- Minimal Efforts Required from Retailers - Retailers can use their various platforms to list their businesses and build their enterprises. The app aggregator handles everything from pickup to delivery. As a result, shops can expand their businesses with little effort.
- Helps build a sustainable ecosystem - The hyperlocal delivery approach is environmentally good since it reduces carbon emissions by reducing long transportation distances.
- Single Device management - You can track, govern, and administer the entire hyperlocal marketplace using just one mobile app.
What is in it for the customer?
Customers turned to online shopping to cover their daily needs when countries went into lockdowns and stores closed. In fact, e-commerce sales increased by 110.8 percent in May 2019 compared to May of the previous year. During the pandemic, even tier II and tier III cities that were previously outside the scope of online commerce contributed significantly to its appeal. A lot of this was made possible by food, pharmaceutical, and grocery corporations providing clients with speedy hyperlocal deliveries.
The pandemic completely impacted consumer behaviour, whether it was due to the Amazon effect or the popularity of hyperlocal deliveries. Customers today are dissatisfied with long delivery estimates. Cart abandonment is caused by a variety of factors, including delivery charges and lengthier EDDs. As a result, e-commerce companies and logistics partners have had to devise new strategies to fulfil escalating client demands.
A hyperlocal marketplace works by delivering goods and services to customers from offline establishments within a few kilometres of their location. Consider not only FMCG but also home maintenance, grooming, and other customer-valued services. So, if a neighbouring restaurant does not offer food delivery, a hyperlocal business can come in and fill the gap. Such company concepts benefit greatly from the use of a mobile application.
Today, there are markets that enable goods delivery within 24 hours, which is commendable, but a hyperlocal marketplace can do the same thing in less than an hour. The buyer is attracted not only by the timeliness but also by the fact that the products are delivered from their trusted and well-known stores.
Hyperlocal: The future is now and now-onwards
Hyperlocal delivery, which is capable of giving speedy deliveries inside a small geographical area, will undoubtedly grow as blockchain, AI, machine learning, and big data improve. It also has the potential to provide clients with a hybrid of conventional physical store purchasing with the new age paradigm of internet shopping, infusing the shopping experience with warmth, options, and quick availability.
It remains to be seen whether hyperlocal delivery will become the standard in future e-commerce. But one thing is certain: it gives enormous benefits to e-commerce shippers and local businesses, and it has changed the world of online commerce.
(The author is CEO at Smollan India)
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