What Is Hyperlocal Ecommerce?
Hyperlocal ecommerce is a business model where customers can order products or services online and the final delivery of the products/services is done through a chain of local stores or service providers. The hyperlocal ecommerce model can be a digital-native set-up or can have both offline and online stores.
The aim of the hyperlocal ecommerce model is to deliver orders quickly and cater to the local demands in an efficient and seamless manner. A strong vendor network along with smart order management and delivery systems are key to the success of the hyperlocal ecommerce model.
How Does Hyperlocal Ecommerce Work?
Hyperlocal ecommerce works on the hybrid ecommerce model comprising of multi vendor marketplace and location-based stores network. Local vendors from different geo-locations are onboarded on the hyperlocal marketplace as vendors. Customers from different geo-locations can order from a catalogue designed from the products offered by the vendors in their given city/state/country.
In the digital-only hyperlocal marketplace, the customers order through the brand website or hyperlocal ecommerce app. The orders are then routed to the nearest vendor store who fulfils the order quickly. In the omnichannel hyperlocal setup, customers can place their orders through the website, app or in-store. They can choose to get their orders delivered at home or can pick-up from the nearest offline store.
To speed up delivery the vendor stores in the hyperlocal marketplace setup use their own fleet of delivery boys who are well acquainted with the local areas. Alternatively, they can also use hyperlocal delivery partners to ensure quick deliveries.
What Is Hyperlocal Delivery?
Hyperlocal delivery is the process of delivering goods from a local seller to the end customer in a short span of time. It starts after the customer places the order and the order is routed to a local vendor. The designated courier agent then picks up the order (products) from the seller and delivers it directly to the doorsteps of the customers.
For example; a customer orders fruits and vegetables on a grocery hyperlocal marketplace. The order is routed through the nearest vendor in the customer’s city and locality. The vendor prepares the order and hands it to the delivery boy for delivery to the customer’s address.
What Are The Benefits Of Hyperlocal Ecommerce?
Hyperlocal ecommerce in India, as well as global markets, is gaining huge popularity among the customers as well as the vendor merchants. With a lot of benefits for each party this model offers a win-win scenario with the following benefits:
- Win customer loyalty by offering a better shopping experience
Offer diverse and rich product catalogue to customers
Quick delivery ensures customer retention
Customize deliveries using hyperlocal delivery partners
Offline presence gives customers a more engaging buying experience
Boost order volume with frequent orders by satisfied customers
Fast word of mouth brand promotion by happy customers
Ensures better reach to a wider customer base for local sellers
Higher marketing ROI with targeted marketing campaigns
Scale up the hyperlocal marketplace brand to new markets or product lines by onboarding new vendors
The hyperlocal ecommerce market is expected to grow 3X from 2019 to 2027. Valued at $1,324.2 billion in 2019, the market is growing at a CAGR of 17.9% (from 2021 to 2027) and is expected to reach $3,634.3 billion by 2027 (Source: Allied Market Research).
Hyperlocal ecommerce is a fast-growing market and is here to stay and evolve in the coming years. With increasing focus on personalization and quick deliveries, this business model is proving to be
How To Build Hyperlocal Ecommerce Marketplace For Your Brand?
With hyperlocal marketplaces becoming the favourite shopping hub for online buyers, it is a smart choice to experiment with your own hybrid hyperlocal ecommerce model. StoreHippo offers end-to-end solutions to power goods or services-based hyperlocal ecommerce models. From building your location-based stores to hyperlocal ecommerce app and managing the fleet of delivery boys, StoreHippo has it all and more.