Article | 6 min read

Building a Hyperlocal Marketplace with Near Me Delivery or Pickup

Build a Marketplace
Author
Manav Gupta
Editor
Sharad Kabra
Published
August 5, 2024
Last Updated
September 11, 2024

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How to Create Hyperlocal Marketplaces

Hyperlocal marketplaces are emerging as a powerful trend in eCommerce, especially in grocery delivery, food delivery, and service providers among other on-demand delivery niches.

The hyperlocal model can be interpreted as an online business designed to work with local stores to fulfill "on-demand" and "near me" customer needs.

This hyperlocal delivery marketplace business model has gained traction due to the growing demand for quick, personalized shopping experiences, thus opening businesses with a new channel to reach customers and increase sales.

Moreover, such hyperlocal ordering platforms cater to a specific geographical area, often focusing on neighborhoods or small communities, and offer the convenience of same-day or next-day delivery.

Steps to building a hyperlocal platform

  • Identify Your Niche and Target Audience: Start by identifying the specific needs of your target community. Understanding local preferences and demands is crucial to creating a marketplace that resonates with the local population. You may consider the C2C option / P2P rental with home delivery or pickup option for a competitive edge.
  • Choose the Right Platform: Selecting a platform that supports multi-vendor functionality and is adaptable to hyperlocal eCommerce needs is essential. You can consider multi-vendor plugins offering hyperlocal functionalities on popular carts like Shopify, WooCommerce, or Magento to launch your hyperlocal marketplace - quickly!
  • Onboard Local Vendors: The success of a hyperlocal marketplace depends on the participation of local vendors. Collaborate with well-established businesses in the community that can offer unique goods and services.

Flowchart illustrating the complete customer journey from entering the marketplace to receiving their products and services in an on-demand near me delivery model
Image: Customer journey in an on-demand near me delivery model

  • Hyperlocal fulfillment: Efficient logistics are the backbone of the on-demand hyperlocal marketplace business. Consider partnering with local delivery services or setting up your fleet to ensure quick and reliable delivery.
  • Integrate Technology for Personalization: Use geolocation, AI, and machine learning to personalize the shopping experience. Offer customized recommendations based on the customer's location and shopping history.
  • Market Your Platform Locally: Invest in local SEO, social media marketing, and community engagement to promote your marketplace. Word-of-mouth and local advertising can be powerful tools to increase engagement on your online platform.

Customizing Your Multi-Vendor Marketplace on Shopify for Hyperlocal Delivery

Shopify, a leading e-commerce platform, offers extensive features and customization options for building a multi-vendor hyperlocal marketplace. You need to focus on the right plugins and customizations to transform your online store on Shopify into a feature-rich hyperlocal marketplace. For instance,

1. Implementing Location-Based Product Filtering:

One of the key features of a hyperlocal marketplace is displaying products and services based on the customer’s location. Shopify allows you to customize your store to prompt customers to enter their postal code or use geolocation to filter available products and services automatically. This ensures that customers only see items that can be delivered to their area.

2. Set Up Local Delivery Zones:

Use Shopify's settings to define specific delivery zones based on postal codes distance radii or geographic areas. Further, you can configure your store to offer location-based pricing and shipping options.

3. Implement Click-and-Collect Options:

Shopify allows you to offer click-and-collect services, enabling customers to pick up their orders from local stores. This feature can drive foot traffic and enhance the overall shopping experience.

4. Vendor-Specific Settings:

In a multi-vendor marketplace, each vendor must be able to manage their service areas, inventory, and delivery options. Shopify apps allow vendors to define their delivery zones/radii and manage their products independently. This setup enables a seamless experience for both customers and sellers.

5. Integration with Delivery Services:

Shopify supports integration with various delivery services, making it easier to manage hyperlocal deliveries. For example, you can integrate with local courier services or on-demand delivery platforms like Postmates or DoorDash to fulfill orders efficiently.

Alternatively, you can utilize Shipturtle's 200+ integrated shippers to manage hyperlocal on-demand delivery alongside configurable vendor dashboards.

Merchants must decentralize product-level and order-level controls to individual vendors in a hyperlocal model for better fulfillment. Shipturtle proves to be of great value with powerful vendor dashboards, manage local delivery and pick-up, real-time tracking and more.

Hyperlocal in-demand verticals
Image: Industries Suited for Hyperlocal Delivery Model

Industry Verticals Best Suited for Hyperlocal Delivery Model & Why Should You Invest?

The hyperlocal marketplace model is effective across multiple industry verticals, allowing businesses to deliver fast and personalized services. Here are some of the top verticals:

  1. Grocery and Essentials: The demand for quick delivery of groceries and daily essentials has surged, especially post-pandemic. Hyperlocal marketplaces enable local grocery stores to reach customers more effectively, ensuring timely delivery of fresh produce and household items.
  2. Pharmacy and Healthcare: Hyperlocal delivery ensures that customers receive medications, healthcare products, and other essentials quickly, which is crucial for time-sensitive needs such as prescriptions, over-the-counter medications, and medical supplies.
  3. Food and Beverages: Restaurants, cafes, and even local food vendors can greatly benefit from hyperlocal delivery. This model allows them to offer fresh and hot meals within a short timeframe, catering to the increasing demand for convenient dining options.
  4. Home Services: From plumbing and electrical repairs to cleaning and pest control, hyperlocal marketplaces can connect customers with local service providers for immediate assistance. Hyperlocal on-demand services model is particularly effective in urban areas where there is a high demand for on-demand services.
  5. Fashion and Accessories: Local boutiques and fashion retailers can use hyperlocal platforms to offer personalized shopping experiences and quick delivery, enhancing customer loyalty. This is particularly appealing in fashion-conscious markets where trends change rapidly.
  6. Automobile Parts and Services: Hyperlocal delivery is increasingly popular in the automotive industry, especially for spare parts and emergency services. Customers can order parts from local suppliers via the marketplace app and receive them quickly, minimizing vehicle downtime. Additionally, local mechanics can be dispatched for on-site repairs, offering a convenient solution for urgent automotive needs.
  7. Electronics and Gadgets: With the growing reliance on technology, there is a high demand for quick access to electronics and accessories. Near me hyperlocal marketplaces allow local electronics stores to compete with larger e-commerce platforms by offering faster delivery and personalized customer service.
  8. Flowers and Gifts: Hyperlocal delivery is ideal for florists and gift shops, where timely delivery is crucial, especially for occasions like birthdays, anniversaries, and holidays. Local vendors can offer same-day delivery, ensuring that gifts arrive fresh and on time.
  9. Pet Supplies: Pet owners often need immediate access to pet food, grooming supplies, and other essentials. Hyperlocal marketplaces can cater to this demand by connecting customers with local pet stores that can offer fast and reliable delivery services.

Two ways to convert your Shopify store into a hyperlocal marketplace platform

If you’re looking to build a hyperlocal marketplace on Shopify, there are two primary approaches you can take:

  1. Use Shopify Apps to Build a Multi-Vendor Marketplace
  2. Custom Development for Hyperlocal Features

1. Use Shopify Apps to Build a Multi-Vendor Marketplace:

Shopify’s app ecosystem offers various solutions to convert your store into a multi-vendor marketplace. For instance, Shipturtle’s Multi-Vendor Marketplace Pro+ allows you to add multiple vendors to your store, each managing their products, services, and delivery areas. These apps provide comprehensive tools for vendor onboarding, order management, and commission settings out-of-box.

2. Custom Development for Hyperlocal Features:

You can opt for custom development to build hyperlocal-specific features directly into your Shopify store for more advanced customization. This approach allows you to create bespoke hyperlocal marketplace solutions tailored to your business needs, such as integrating advanced geolocation services, custom delivery options, and unique vendor management tools.

Creating a near-me hyperlocal market allow local vendors to compete with larger e-commerce platforms by offering faster delivery and personalized customer service and at no inventory management hassles for the merchant.

hyperlocal marketplace examples
Image: Famous Examples of Hyperlocal Business Model

Hyperlocal Business Model: Top Examples

The hyperlocal concept is adaptable to various industries and is successfully applied to a wide range of products and services by the following hyperlocal companies:

1. Grocery Delivery Apps:

  • Instacart: Offers on-demand grocery delivery from local supermarkets and grocery stores across the United States.
  • Blinkit: Styled as India's last-minute app, consumers can avail of hyperlocal delivery services from groceries to printing.
  • Getir: A Turkish grocery delivery app known for its rapid delivery times.

2. Food Delivery Apps:

  • Uber Eats: A global food delivery platform that partners with local restaurants.
  • Zomato: A popular food delivery app in India with a strong focus on hyperlocal services.
  • DoorDash: A US-based food delivery app that operates in various cities.

3. On-Demand Services:

  • TaskRabbit: Connects customers with local handymen for various tasks like cleaning, assembly, and repairs.
  • Gojek: An Indonesian ride-hailing app that also offers on-demand services like food delivery, grocery shopping, and courier services.
  • Postmates: A US-based on-demand delivery service for food, groceries, and other items.

4. Local E-commerce:

  • Amazon Fresh: Amazon's grocery delivery service with a focus on local products and delivery options.
  • Walmart Grocery: Walmart's online grocery delivery service is available in select areas.
  • Local marketplaces: Online platforms that connect local businesses and customers, such as Etsy, Kijiji, and OLX.

5. Community-Based Platforms:

  • Nextdoor: A social networking platform for neighborhoods that facilitates local communication and commerce.
  • MyGate app: Housing community-based safety app in India that often includes features for local businesses and services.

Benefits of investing in hyperlocal marketplace

I. Competitive Edge:

  • Leveling the Playing Field: Hyperlocal marketplace works by enabling smaller businesses to compete effectively with larger e-commerce giants. By focusing on a specific geographical area, these platforms can offer faster delivery times and more personalized services that cater to local preferences.
  • Enhanced Customer Reach: Hyperlocal marketplaces provide a platform for businesses to reach a targeted audience within their community, increasing their visibility and customer base.
  • Niche Market Focus: Businesses can specialize in products or services that cater to the unique needs and preferences of their local customers, differentiating themselves from larger, more generic e-commerce platforms.

Benefits of investing in hyperlocal marketplace

II. Increased Customer Loyalty:

  • Personalized Experience: Hyperlocal marketplaces can offer a more personalized shopping experience by recommending products based on local tastes and preferences.
  • Faster Delivery: Quick delivery times, often same-day or next-day, can significantly improve customer satisfaction and loyalty.
  • Community Support: By supporting local businesses, hyperlocal marketplaces can contribute to a sense of community and foster customer loyalty.
  • Convenience: The convenience of ordering items online and having them delivered locally can make hyperlocal marketplaces a preferred choice for many customers.

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Wrapping Up

Building a hyperlocal marketplace involves identifying your niche, choosing the right platform, onboarding local vendors, optimizing logistics, integrating technology for personalization, and effectively marketing your marketplace.

Platforms like Shopify, along with specialized plugins and app development partners, offer the tools and flexibility needed to create an online marketplace.

You can book a demo with us today to learn more about developing your business idea into a hyperlocal marketplace.

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About The Author

Manav Gupta

Manav is a content curator and consultant at Shipturtle, with expertise in translating complex concepts into clear, everyday business language. He is a graduate engineer with well-read opinions that empower readers with actionable insights.