Hyperlocal Marketplace: The latest buzz in the eCommerce industry
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Someone had a brilliant idea to bring hyperlocal marketplace online and now it’s a trend. A hyperlocal e-commerce business might be a new term for you but ‘hyperlocal business’ is a concept very old and traditional. First of all, let’s build an understanding of the hyperlocal business.
What is a Hyperlocal Marketplace?
Services, communities, news or products that are associated with a single village, town, postal code or any small geographical area. E.g. local clinics, shops, garages, markets, grocery stores, restaurants, etc.
In terms of the e-commerce space, the spread of the Coronavirus on a global level isn’t a hamper to the business, especially at this time when there is a surge in demand for home delivery of goods.
Hyperlocal markets and shops have been there for a very long time. People desire comfort, convenience, and want to save their time and effort. This factor made the concept of hyperlocal eCommerce business platforms extremely popular.
While searching for shops, clinics, restaurants, etc. through search engines, customers look for the nearest available option. That’s the concept of hyperlocal. Google has taken the fact into account and now the search results are based on the “Near me” concept. The hyperlocal eCommerce marketplace has tweaked the concept a bit.
The main motive of a hyperlocal business is to deliver every kind of facilities and services within the shortest possible time.
It could be understood as a version of the Online Booking Business. The clutch of e-tailing and hyperlocal businesses is seeing an uptick such as grocery (110-115%), E-pharma (50%-60%).
Online food delivery registers a 10% dip in the first two weeks of March as online services in some areas have taken a huge hit.
This is the right time to get online, especially for offline merchants who might be facing business ups and downs during this crisis. It’ll be a fully wise decision to starting with an online business today so that even after the COVID19 crisis, you can get better growth. For more information on how and where to start, click here. Make the best of the Corona crisis today!
How is Hyperlocal eCommerce Business Marketplace Similar to Multi vendor Marketplace?
The concept of a hyperlocal eCommerce marketplace and a multi-vendor marketplace is quite similar. Like a multi-vendor marketplace, multiple vendors register on a hyperlocal marketplace too. But these vendors mostly sell services instead of goods and ensure delivery within the shortest time (within 24 hours). E.g. Urbanclap, Bigbasket, ClickYourMed, Swiggy, Ola, etc.
Some other similarities between a hyperlocal and multivendor marketplaces are
Admin and Seller system
- Vendors register themselves.
- Admin Adds services just like its counterpart in a multivendor marketplace, which adds products
- Customers pay either online or offline.
- The admin has total control over the commission rate.
But a hyperlocal eCommerce business is still different in certain aspects from a multivendor marketplace.
- Hyperlocal admin can decide to restrict their service area to a city or they can expand it over a larger geographical area.
- They deliver services in a very short time.
Since the hyperlocal eCommerce business is totally based on the “Near Me” concept, the hyperlocal site uses a geographical location detector. The site detects the current location of the customer. It helps to scan the nearest registered service provider. This is how hyperlocal sites provide their services at a precise time.
Hyperlocal space is taking over the economic market. In developing countries like India, the course of development of the hyperlocal eCommerce market is growing substantially. Indian hyperlocal eCommerce businesses like Swiggy, Bigbasket, Urbanclap, etc. started and became a big league in no time.
Why Start a Hyperlocal Marketplace?
Hyperlocal eCommerce business is taking over the economical market at a rapid speed. It can be a good idea to invest in such a business. Hyperlocal business needs comparatively less capital. There is no need to rent a warehouse to keep stocks. Consumers will be provided with all the products through local vendors, hence you will not have to manage their orders. Delivery destinations being local, you will not have to think much about the shipping methods.
Benefits for the admin
- You get an upper hand in the business by delivering services within no time.
- The registration of more vendors will bring more profit.
- Whether the customer pays online or offline, the generation of income is fleet.
Benefits for the vendor
- They will get noticed more if they register their shops.
- It gives a wide window to the growth of their business.
- A good scope of generating extra income.
Benefits for the consumers
- Receive services and products within a very short span of time.
- Receive a greater discount than the grocery stores. It helps them save money.
- Consumers feel in-control of the whole supply chain due to transparency.
- Consumers will know the location of the shop from where their products are being shipped. It creates a greater degree of trust.
How Can You Start a Fairly Active Hyperlocal Marketplace?
Choose what to sell.
Just like multivendor eCommerce sites you too can choose what kind of hyperlocal business you want. It can be as multidimensional as Urbanclap or as niche focused as UrbanPro.
Choose your target consumers
Segment your consumers according to their age and needs and then target them accordingly during your service time. Strategizing beforehand how and when to target which type of customers will help you.
Bond with local vendors and encourage them to register on your site. You may need doorstep deliveries if your hyperlocal business is delivery based like Grofers, Swiggy, or Big Basket. You can hire deliverers on payroll or on you may get into a contract with a delivery agency.
Get an idea about the hyperlocal delivery model
Have a defined revenue model
You may choose all the stages where you can charge a commission from the vendors and the consumers as well.
You may charge the vendors a monthly commission that is fixed. Or you may charge them to commission every time their products are picked. Plus there are site maintenance charges as well that you may add to the commission you charge. You can also charge the consumers for providing the home-delivery services.
Get a mobile app for your business
The importance of mobile apps for businesses has been already emphasized enough. All the multivendor sites have a mobile application of their sites. But having an application for your hyperlocal site is even more important. Most of the urbanites own smartphones that have replaced the PC. It will be useless if your site won’t be mobile-friendly. People won’t get the facility to order from wherever they want. It will simply defy the whole idea of going hyperlocal.
Just imagine a customer will have to switch on their computer and wait till it opens. Then type the URL of your site and wait till it loads, then logs in and then places the order. It sounds hectic, doesn’t it? That’s the reason consumers won’t prefer your site if you don’t have a mobile app for your site. The entire idea of a hyperlocal marketplace is favored because its USP is speed, why let a slow responding site hamper the experience.
The hyperlocal addon for Magento 2 by Cedcommerce lets the admin, local vendor and consumers to connect with each other. Along with other features, there is a prominent feature. This addon helps the site to auto-detect the location of the consumers if they don’t enter it manually.
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For a remarkable amount of time, CedCommerce has been offering the necessary technical solutions specifically made for building one such platform. These extensions come with a multitude of features to aid in the development of a rich multi-vendor e-commerce marketplace. CedCommerce’s Magento 2 Marketplace extensions and add-ons are ready-made and reasonably priced solutions for building a website like Amazon. A hyperlocal eCommerce business website armed with these features is undoubtedly going to possess the best in class features.
To build your own multi-vendor marketplace & to see what our satisfied customers have to say about us do visit: CedCommerce