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A Closer Look at Hyperlocal Delivery & its Features

April 14, 2020

8 min read

The delivery that you order within a small radius is precisely what hyperlocal delivery constitutes.This type of delivery service became popular during the pandemic when we were all confined to our houses because of the lockdown. Many eCommerce portals began delivering goods using hyperlocal delivery model to ensure everything you required reached your doorstep quickly. 

The demand for hyperlocal deliveries has witnessed a rise over the years. It has become essential for online businesses to provide this service in order to stay competitive. Reports suggest that the hyperlocal delivery industry is anticipated to grow significantly by 2027 reaching $3634.3 billion.

Hyperlocal Deliveries in India

Let’s take a closer look at hyperlocal delivery & its features and Read on to find out how and why hyperlocal deliveries have become an integral part of our eCommerce ecosystem.

What is Hyperlocal Commerce?

Hyperlocal commerce refers to the trade that takes place in a minimal geographic area. It could include grocery shops, chemist shops, flower shops, cafes, etc.

Usually, you do find the shops every 10 to 15 km. People who stay in the vicinity of these shops are regular customers.

From time immemorial, people have purchased daily essentials and other similar products from such shops.

As the lifestyle of people has evolved and technology has taken over our lives completely, we have shifted to ordering these products via phone calls or now even ordering them online.

Since these sellers who have always owned brick and mortar stores do not have an extensive fleet to deliver their products, they are never able to expand their customer base.

This is where hyperlocal delivery comes into play and can be a game-changer for their business.

What is Hyperlocal Delivery?

The Hyperlocal delivery meaning is a straightforward one. Hyperlocal delivery refers to the process of delivering goods and services in a small geographical area. Sellers who want to provide food items, stationery, pharmaceuticals, and grocery items like packaged foods, pulses, cereals, etc. are the prime users of this process. Their supply chain is restricted to a small area, and the transactions are personalized. 

With time, hyperlocal sellers have adapted to the hyperlocal delivery model. They have either started delivering their products through a delivery agent or online marketplaces.

How Does Hyperlocal Delivery Work?

The concept of hyperlocal delivery is straightforward. If the seller has his fleet, he uses it to deliver the products his customers order over the phone, WhatsApp, or SMS.

The buyer places an order on the app, and the assigned delivery agent picks up the product from the shop and delivers it to the buyer.. The payment could be made online or via cash. The marketplace remits the amount to the seller after a fixed period. 

Benefits of Hyperlocal Delivery

Now that you have had a closer look at hyperlocal delivery and its features, it is time to acquaint you with the benefits it offers. Here’s a look:

Reach Customers Faster

With hyperlocal deliveries, you can provide your buyers with same-day or next-day deliveries. Also, if you have the stock, you can deliver products in a few hours, too! Faster deliveries mean more customers in a day.

Personalized Transactions

Since the seller and buyer are nearby, there is a good chance that there has been physical interaction between them. Hence, both parties involved have trust in each other, and payment mode can bedecided based on mutual trust.

Simplified Supply Chain

The supply chain of hyperlocal deliveries is short and direct. Sellers do not need to manage an elaborate inventory, schedule lengthy pickups, or heckle about the volumetric weight

Quick Revenues

The returns are faster as it is equivalent to daily transactions. eCommerce demands a more abundant supply chain and various checkpoints. But hyperlocal delivery yields returns almost immediately. 

Easier Communication

Since the buyer and seller would know each other, the communication channel is direct and hassle-free. The buyer does not need to think twice before contacting the seller, and even in case of exchanges or returns, and the parties can handle it easily. 

Lower Logistics Cost

It helps sellers reduce logistics costs.  How? As the delivery radius is shorter, they save on fuel consumption as well as other transportation expenses such as toll taxes. They can use bikes to deliver their goods to the end consumer.

Greater Visibility in Local Markets

When you choose to sell through a popular platform that offers hyperlocal delivery, you can cater to a larger audience. It has the power to boost your visibility in your immediate geographic area. This helps in building a stronger local presence. By offering efficient service, you can encourage repeat purchases and build a loyal consumer base in your vicinity. 

Exploring the Hyperlocal Delivery Market in India

The hyperlocal delivery market in India is witnessing rapid growth. This is because of the rising demand for quick and efficient services. This model enables the delivery of products from local sellers directly to nearby customers. 

Businesses selling groceries, food, medicines, and personal care products mostly complete deliveries within a few hours. Various hyperlocal delivery applications & hyperlocal marketplaces have come into the picture over the years. These They make ration shopping very convenient for buyers.

However, it also entails certain challenges and drawbacks for the sellers. One of the main drawbacks of this model is that apps require sellers to pay commissions.. If they commit to free delivery in an attempt to increase their sales, they also require paying delivery charges. Sellers face challenges such as rising competition in the market, route-related issues, planning multiple delivery routes, and adhering to estimated times of arrival (ETAs).

Various hyperlocal delivery applications & hyperlocal marketplaces have come into the picture. These make ration shopping very convenient for buyers. Moreover, most hyperlocal delivery apps also have exclusive partnerships with stores and in-house brands that make it difficult for other brands to succeed.

It is to be understood that the scope of hyperlocal deliveries is vast, and it cannot be reached with the help of just online marketplaces. To make hyperlocal delivery active in every region, sellers will have to either hire their own feet or collaborate with delivery partners.

To make hyperlocal delivery easier for sellers, Shiprocket has launched its hyperlocal delivery initiative. Let’s have a closer look at it. 

Shiprocket – Hyperlocal Deliveries Made Easy! 

With Shiprocket, you get the flexibility to ship your products directly to your customers within a 50 km radius. You can ship your orders with renowned hyperlocal delivery companies like Dunzo, Shadowfax, Ola, Borzo, Porter, LoadsShare, and Flash.

Also, you do not need to associate your store with an online marketplace to do so.

The best part is, you can directly schedule pickups on a hyperlocal dedicated mobile application by Shiprocket –Quick. Using Quick, you can schedule pickups for your hyperlocal orders easily, handover the invoice to the delivery agent, and deliver your product to your customers’ doorstep.

here is no limit to the minimum number of orders when you choose this delivery type. On the other hand, the upper weight limit for the goods is mostly set between 12 to 15 kg. Heavier items may be delivered by paying some additional cost.

Apart from delivering hyperlocal orders to customers, Shiprocket quick also offers you with a pick and drop service, using which you can send packages such as documents, food items, gifts, flowers, and many more to your friends and family.

You can prioritize your orders at your convenience and deliver them accordingly. Shiprocket Quick Delivery rates start at INR 10/km. The service is available round the clock. You do not have to pay any demand surge fee to use its services at any hour.

If you also want to ship your hyperlocal orders at your convenience, you must ship with Shiprocket for lightning-fast hyperlocal delivery. 

To begin, just click here.

Conclusion

Hyperlocal delivery sector has evolved into a crucial component of the eCommerce industry. It is driven by consumer demand for instant delivery of a wide range of products. It enables sellers to deliver goods like groceries, food and medicines at lightening fast speed. 

Its key benefits include support for local businesses, lower logistics costs and quick revenue. However, sellers have to face challenges such as managing inventory to meet urgent demands, rising competition and ETA adherence. Despite these issues, the sector shows immense potential for growth. 

If you also want to conduct hyperlocal deliveries and reach maximum buyers, you can do that easily and independently with Shiprocket Quick.

FAQs (Frequently Asked Questions)

What is a hyperlocal delivery?

Hyperlocal delivery is a shipping model where the customers’ needs are met through local offline stores. The shipping is done in a minimal geographical area.

Does Shiprocket offer hyperlocal delivery?

With Shiprocket quick, you can offer in minutes delivery with courier partners like Shadowfax, Dunzo, Borzo, Porter, Ola, Rapido.

What are the benefits of hyperlocal delivery?

Hyperlocal delivery helps in reaching customers faster and it the simplest supply chain as well.

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