The Hyperlocal Marketplace offer a platform to the people who are willing to start a marketplace with local merchants. The marketplace is the trending online business that has extreme potential in the coming years and the hyperlocal marketplace concept is shaping up small businesses. There are various service marketplaces such as Urban Company, Zomato, etc. popular these days. A rise in investment has been observed in marketplace ideas in the last few years.
But, what is a hyperlocal marketplace? How does it work? How can you start a hyperlocal marketplace in low investment? These are some pressing questions that come to mind when you start digging into it.
What is hyperlocal marketplace business?
As the term ‘hyperlocal’ indicates, the desired items can be purchased locally from the local retailers and shipped to consumers within a short period. So it has two major factors involved: Distance and time.
The delivery model that works with the local merchants for the local people is the concept of Hyperlocal Business. And, if a marketplace is developed with location and distance filters considering the time constrain will be the Hyperlocal Marketplace.
For the basics of Hyperlocal Marketplace, you can refer to my previous article here.
Suppose you live in a town and willing to start a marketplace with local merchants then the hyperlocal marketplace is the one you are looking for. It is easy to connect with local sellers because in small places everyone knows everyone and customers trust the sellers more as compared to other online websites.
I have written another article covering the major industries which are dominating the on-demand hyperlocal marketplace businesses.
Why Hyperlocal Marketplace is flourishing?
The hyperlocal marketplace business is creating a buzz in the marketplace industry and many big brands are coming up with this functionality after the COVID-19 outbreak. The pandemic has forced people to buy products from local businesses as it is a more convenient, transparent, and trusted option. Also, on-time delivery is the major plus for a hyperlocal marketplace over another online website. The major benefits of starting a Hyperlocal Marketplace are:
- More reliable
- Support local businesses
- On-time delivery
- Enhance transparency and efficiency
How can you start a Hyperlocal Marketplace?
To start a marketplace for local businesses you need to decide on an eCommerce platform on which you are willing to create your Hyperlocal Marketplace. Also, it is important to decide the industry and niche before launching your online store. Here is the list of the top 10 hyperlocal business ideas for those who haven’t decided yet. Once you have decided the industry and niche, you can start looking for the necessary features and functionality you want to add to your marketplace.
Put yourself in the customer’s position and see what all a customer demands and do the same for the sellers. You can either ask coders to develop a marketplace website or you can create one with Hyperlocal Marketplace Modules available in the market. Knowband has developed the Hyperlocal Marketplace Module for PrestaShop and it has all the features of a marketplace with navigation functionality.
What functionalities make up a hyperlocal marketplace?
Creating a hyperlocal marketplace isn’t easy but technology always adds ease to difficult things. Do market research and figure out you’re demands and target audience. List the sellers and products in advance and contact them well before launching it. Here is the list of functionalities you must see before developing a hyperlocal marketplace.
· Navigation System
The influence of smartphones can be explored by hyperlocal enterprises today. The GPS or other in-built navigation systems tell customers about the location of stores, the tie-ups they have and help them select the best. It is very simple to find retailers in the nearby area, arrange returns, etc. With customers flagging their exact location through Google maps or other navigation apps, delivery is smooth here.
· eCommerce Platform that has scalability
Todecidethe platform for your local marketplace, look for the scalability that the platform offers. The eCommerce platform you will be selected for the marketplace must support various functionalities and it should be expandable. You can even convert your PrestaShopeCommerce website into a marketplace with PrestaShopHyperlocal Marketplace Module.
· Look for the lucrative revenue models
Your revenue model will be based on two sources: the merchant partners’ commissions and the membership plan. The commission is the lifeblood of your business model and the main contributor to your sales.
The commission model allows you to take some charges from the seller on every successful order he/she makes. This can a fixed amount or a percentage-based amount.
Membership plans are another lucrative source of income for the marketplace owner. The seller has to buy a membership plan for listing their products and the admin can set the eligibility and terms and conditions for various membership plans like time duration, number of products and can combine both.
· The easy seller registration process
Make the registration process quick and easy because a long registration form can kill the seller’s interest and this may cause you with potential sellers. Also, see if the registered sellers are worth the while because you cannot risk it with the frauds on a new marketplace platform as you need to build trust with your customers.
· Let sellers manage everything
Look for the options where you can divide the responsibilities with the seller. A seller dashboard with inventory management, order handling, customer support, and many such features can be a great fit. The PrestaShopHyperlocal Marketplace plugin allows the seller to see the sales comparison based on the Daily, Weekly, Monthly, and Yearly Basis.
· Transparency with transactions
In order to check the sales details that include average income per order statistics and products sold in the form of easy to understand graphs, sellers get quick access. This sales report provides the seller with detailed information about its PrestaShopHyperlocal Marketplace orders and earnings. On a daily, weekly, or yearly basis, the sellers get to compare the sales report. Sellers can see the income and details of the administrator’s transactions, etc.
Testimonials are statements written or recorded that promote your credibility and level of expertise. By expressing the confidence that other individuals have in you and your business offerings, they also strengthen your reputation.
Social proofs: Review and rating system
The Hyperlocal Marketplace PrestaShop module allows customers to post vendor reviews. The Testimonial section of the PrestaShopHyperlocal Marketplace module settings can handle such reviews. Let customers add them!
· Shipping and Payment choices
For different customers, the sellers should handle the shipping options for Hyperlocal Marketplace products. To provide a better shipping service to the customers allow the sellers to list their shipping methods.
PrestaShopHyperlocal Marketplace has the functionality added that can be accessed from the seller dashboard but the listed shipping needs admin approval. The sellers get access to list shipping methods, update their seller profile, handle and process the orders.
· Seller Payouts
Automated seller payout options are the best where you can set the payout days like daily, weekly, or monthly. Also, sellers can raise the payout request to the admin of the hyperlocal marketplace.
These are some of the most important features you should consider before starting your hyperlocal marketplace. Also, have a powerful customer support system with return and refund policies defined properly. Do not forget about GDPR compliance if you are living in Europe. Every contr have their rules for businesses, you must go through them and plan your new venture accordingly.
In the on-demand delivery industry at present, the Hyperlocalmarketplace has been one of the hottest buzzwords. Customers, retailers, developers, and the economy all have a host of good reasons for embracing and welcoming the hyperlocal on-demand delivery model. In the near future, you should foresee a proliferation of such firms!
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