Anytime someone puts the word “hyper” in front of something, you know they mean business. And while the term “hyperlocal delivery” is one that few people are familiar with, there’s a good chance you’ve used this type of delivery service at some point.
For retailers with a brick-and-mortar stores, hyperlocal delivery is an excellent way to give customers a fast and convenient purchasing option. However, if you’re going to take advantage of a hyperlocal delivery model, there are a few important factors to consider, including the delivery service provider that you partner with. In this article, we’ll go over all these key considerations to help you decide if local delivery is the right choice for your business.
What is hyperlocal delivery?
Hyperlocal delivery is the process of delivering customer orders within a very short distance—typically the same neighborhood or city where the business is located. It’s a logistics model that allows businesses like restaurants, pharmacies, grocery stores, florists and other retailers to offer rapid home delivery of their products. Services such as Uber Eats and DoorDash are the most well-known examples of hyperlocal delivery, but there are many other hyperlocal delivery services that go beyond food delivery to serve a wider range of local businesses.
Unlike traditional delivery models that rely on regional warehouses or fulfillment centers, products delivered via hyperlocal delivery are sourced at the store level. This cuts down on both travel time and costs, enabling local businesses to offer home delivery without the need to build an expansive logistics network.
The benefits of hyperlocal delivery
For distributors and retailers, the hyperlocal delivery model offers a lot of benefits. We’ve already touched on some of these benefits, but here’s the full list of why retailers should consider leveraging hyperlocal delivery:
1. Faster delivery times
In the hyperlocal delivery model, products are delivered directly from your store to customers who are located in your area. As you can imagine, this results in rapid delivery times, often within a matter of hours (or even minutes) after the customer places their order. With customer expectations regarding delivery times continuing to rise, offering expedited delivery can help boost sales and increase customer loyalty.
2. Increased sales and revenue
Lots of customers today prefer to shop from home. By offering a hyperlocal delivery option, you can reach these customers and expand your store’s customer base beyond in-store shoppers.
3. Cost-effective logistics
With short delivery distances and direct pickup offered by the hyperlocal delivery model, businesses can cut down on transportation and warehousing costs. Many delivery solution providers also offer flexible, pay-as-you-go pricing models that make hyperlocal delivery even more affordable for local and regional businesses.
4. Environmentally friendly
Shorter distances mean lower carbon emissions, which makes hyperlocal delivery a model that is just as beneficial for the environment as it is for businesses.
Interested in exploring hyperlocal delivery for your business?
Key considerations when implementing hyperlocal delivery
Hyperlocal delivery can provide a lot of advantages for businesses, but there are a few important factors you’ll want to consider before you adopt this delivery model:
1. Choosing the right delivery provider
The most important decision you’ll need to make if you want to implement hyperlocal delivery is choosing your delivery provider. As the hyperlocal delivery model continues to grow more and more popular, the number of delivery providers stores have to choose from is growing as well. Services such as Instacart and DoorDash are popular choices for parcel deliveries, but there are also service providers like Bungii who offer hyperlocal delivery for retailers that sell big and bulky goods, like appliances, furniture, and home improvement products.
When selecting a delivery provider, be sure to consider these important factors:
- Delivery speed and reliability
- Coverage area
- Commission fees and pricing structure
- Integration with your point-of-sale (POS) system
- Customer service and support
All these factors will have a big impact on your experience (and your customers’ experience) with a delivery provider, making it important to research and consider each one carefully.
2. Optimizing inventory management
Hyperlocal delivery works best when inventory is well-managed to avoid stockouts or delays. Keep in mind that this becomes more complicated when customers are purchasing from a digital shelf. Using real-time inventory tracking can help ensure you only sell what is available.
3. Offering a seamless ordering experience
To create a smooth and enjoyable experience for your customers, it’s essential to offer a user-friendly ordering experience. This can be accomplished in a few different ways. Many businesses create a dedicated website or delivery app to accept online orders. Depending on the delivery service provider you partner with, you may be able to accept orders via their delivery app as well.
4. Managing delivery costs
Hyperlocal delivery can be a highly cost-effective option, but it’s still essential to keep track of your expenses and ensure that you’re getting a good return on your investment. Expenses such as delivery service fees, packaging costs, and the cost to create and maintain a delivery website or app will all need to be considered.
Start offering hyperlocal delivery with Bungii
Hyperlocal delivery is a powerful way for local businesses to reach new customers and better compete with brands offering on-demand delivery. If you would like to start leveraging the benefits of the hyperlocal delivery model, Bungii can help. We offer an expansive delivery network that covers more than 80 cities across the country and specialize in hyperlocal delivery services for a wide range of industries and businesses of all sizes. Contact us today to learn more.
