A Complete Guide to Start Your Hyperlocal Marketplace Business Model – The Rise of D2C

Mitesh Modi Mitesh Modi
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A Complete Guide to Start Your Hyperlocal Marketplace Business Model – The Rise of D2C

Organisations are looking for different business strategies to enhance their business prospects. In fact, the main agenda is always being revenue increase, there are quite a lot of revelations happened in recent times. One must also accept the fact that the pandemic has given rise to certain business tactics that have helped them ride through the tide. Moreover, such tactics can be implemented even in the present and in the future to have lucrative benefits. 

One such business strategy is the Hyperlocal Marketplace Business Model. Many might be wondering as hyperlocal delivery works? Interestingly, as consumers, we have been using such services for quite a while now. Many businesses have inclined to this approach as it is convenient for both the parties; Seller as well as the Buyer. As such, the businesses are focusing on increasing customer satisfaction as they have started integrating this model as their prime source of income. 

Incidentally, the hyperlocal marketplace is adopted by many small and medium-sized businesses too. All they have to do is to increase their local presence through online campaigns and digital applications. Business strategists have also identified that hyperlocal delivery has reduced a lot of expense and complexity in reaching out to the customers too. With the business model gaining popularity and if you have a business and looking to adopt this model, read this article further to get all the information with regard to the strategies and advantages of the hyperlocal marketplace business model. You will be gaining insights on

  1. Hyperlocal Marketplace Business Model and its significance
  2. Understanding D2C as a business strategy
  3. Advantages of D2C market strategies
  4. Increasing Local presence through Online platforms
  5. Future of Hyperlocal Market place
  6. Ways to Build Hyperlocal market place
  7. Key features to be available in developing the D2C online platform

This article shall be exhaustive and informative as we have detailed every aspect of this strategy for all sizes and types of businesses. 

What Are Hyperlocal Marketplace Model And Its Concept?

Hyperlocal Marketplace is the online mode of offering products and services to customers. It can also be called an online business where the merchants and vendors shall advertise their product or service so that the customers can opt for the same by paying for it. 

The main aspect is to deliver the best to the customers to their doorstep. Customer satisfaction begins with the speed at which the product or the service is offered to the consumers. You might have come across a few industries already utilizing this model. If not, let us recollect. 

  1. Food Industry – Be it cooked food or ingredients
  2. Laundry Services
  3. Online Grocery Store

We have given these industries as just an example. As such, there is on-demand hyperlocal delivery for almost all types of businesses that exist on earth. All you need is to be present online with a mobile application so that the customers can use it to order the product or the service to be delivered on time. 

The basic difference in the operation lies in the channels through which the product reaches the customer. Let us see the difference with an example.

The traditional supply chain is

  1. Manufacturer to the Wholesaler 
  2. Wholesaler to the Distributor
  3. Distributor to the Retailer

Finally, from the retailer, it reaches the consumer.

The new supply chain shall be

  1. Manufacturer to the Advertising departments or Website
  2. Consumer subscribes or purchases the product

As you can see, the several channels of movement are restricted and the product reaches the customers directly from the manufacturer. The complexity of reaching the middlemen is avoided and thereby reducing a lot of complexity in the process. 

hyperlocal delivery model By MultiQoS

Why is Hyperlocal Marketplace Business Model is Blooming?

The hyperlocal delivery market is on the surge because of many reasons. As seen earlier, it reduces the complexity of the process. Further, the customers are finding it easy to order through the mobile application. The flexibility of usage and availability of the products anytime is making the consumers prefer the digitized mode of purchase. 

Firstly, the change in this market trend is because of the change in customer preference to purchase their desired products. Secondly, the customer has several options to compare the price and quality of the product before making the purchase decision. Lastly, the competition among similar industries has given rise to numerous benefits to the customers to lure them to buy the product or the services.

Incidentally, this has brought the sellers and the customers closer. There is no requirement for a wholesaler or a retailer to be available. The organisations are using business analytics to understand consumer behaviour and give them the right offers and discounts too. A lot of the cost that is involved in procuring the product and selling it to the customers is vastly reduced. This adds to the profit margin for the organization too. 

With the cost being reduced and many complex processes being compromised, the businesses are finding it to be the best, thus making it an on-demand hyperlocal delivery.

Also Read: How to Develop an Internet of Things Application: The Guide to IoT Development

What Is D2C Model?

The method through which an organization can sell their products or services directly to the customer without any involvement of the third party is called the Direct to Customer business model. Most of the businesses that were operating offline previously are inclining to this model by setting up an online platform of their own and selling their products to their consumers.

Further, the companies are using advanced digital marketing techniques to market their website or their mobile application so that the customers are aware of such practices. There are many reasons why businesses are moving towards the Hyperlocal marketplace. We shall see a few statistics that may give you a fair idea of why you must opt for this business model.

  1. In the US alone, the millennial has spent $600 Billion in the past year through online shopping
  2. The future trend of shopping is online and it shall increase to 81% in just one year.
  3. More than 87% of the companies in the world are able to relate to the customers through this digitized mode of business

It is indeed a simple set-up. If you are planning to leverage the above-mentioned numbers, set up an online platform for your business and start selling the products to your customers. You may additionally require a workforce for delivering the products. Also, you can easily cut the middlemen in the transaction and spend less than half of it on digital marketing aspects. Going global and catering to the customers worldwide can be your expansion strategy too. 

Advantages of Moving to D2C Model

The Hyperlocal model of delivery ensures increased business and enhanced revenue margin. But, if this is the advantage you are looking at, you must also realize that there is much more to it. This column shall help you gain clinical insights on the major advantages you may experience by using this model.

Understand Your Customers Better:

This is indeed the best part of using the D2C model in your business. The digital platform shall allow the customers to choose their preferred products. The back end tools of your platform shall give you the data of the customers purchasing a particular product in a specific season. Similarly, you can learn consumer behaviour through data analytics techniques. You can use this data to make some informed decisions to improve on customer experience. Remember, delivering the product is not a challenge, it is all about customer retention and satisfaction these days. 

Scale Your Market Reach Conveniently:

D2C model helps you experiment the new products by narrowing the locations to which you are planning to sell. This approach shall help you get feedback from the customers and expand the market reach gradually. The testing of the product and customer reaction shall be completed conveniently without spoiling your brand image. Further, you can also learn the likes and dislikes of the customers using such techniques too. 

Enhanced Brand Image and Reputation:

You are completely under the control of any situation. The moment a customer gets in contact with your site, you are the person to develop the brand and its image. The transparency in the transaction processes and delectable product offerings shall increase customer loyalty too. This in turn helps in increasing the business prospects too.

The list of advantages are many and this is enough as an essence to kick start proceedings with the hyperlocal marketplace. The key focus will be on improving customer experience and customer interaction. The marketing channels shall shift completely digital and your brand shall go viral among the audience if used with the right digital marketing strategies. As said earlier, once entering into an online mode of business, you are actually going global. Setting up an international corridor for your business is just a decision away. 

How Does A Hyperlocal Marketplace Work?

If you are an offline business owner serving the customers on a retail basis, shift your mindset to a digitized platform. Saying ‘No” to this venture will cost your business dearly in future. In fact, 2020 and 2021 saw a sea change in customer behaviour. And this pattern does not seem to change in the recent future. Experts predict this behaviour to be constant for a very long time. 

The D2C model requires you to create delectable websites and highly interactive mobile applications for the customers to use. Precisely speaking, you will develop an e-commerce store that shall cater to the customer’s needs. You may have any business of your choice. Be it a laundry store or a computer hardware service company. You can utilize mobile app developers to set up the online platform for the customers to use and purchase the product or the service of their choice.

In order to bring customers to your website or download your app, you must be on top of the business in making some impeccable decisions in terms of digital marketing. It can be social media marketing or SEO or any other techniques that can increase traffic to your website or your application. The more the customers download your app, the higher the revenue margin. Further, once the customers are on your platform, you must ensure that they are engaged with a lot of offers, discounts and services through different strategies. 

In a nutshell, the Hyperlocal Portable Application can be of 2 types

  1. Hyperlocal Services
  2. Hyperlocal Delivery

What Technologies Make Up A Hyperlocal Marketplace?

For you to go digital with your business, there are two types of requirements. One is on the infrastructure side, the other is the technology side. The former is not challenging but the latter requires meticulous thought. 

Ace Navigation Systems

The primary technology required to set up a D2C system is the mapping services. Of course, the customers use their cellphones to invoke an application and select the product to purchase. Additionally, the location of the cellphone shall determine the proximity of the store too. This is a critical aspect of your system as depending on the distance, there can be many strategies incorporated. 

Payment Systems

As an online store, you need to have safe and secured payment gateways. The customers have numerous ways to make the payments and your application must be equipped with that. Limited payment gateways might be one of the reasons for the customers to abandon your brand. 

hyperlocal on-demand delivery model

Ecommerce Platforms

You need a comprehensive platform to build the hyperlocal marketplace business. We had discussed earlier that you need a platform to interact with the customer and that shall be the eCommerce platform. 

SRM – Supplier Relationship Management

The customers must know the products available at your store. This shall be done by SRM and as and when the inventory of a certain product goes low or shows unavailability, then it must trigger the vendor to supply more goods for the customers’ use. 

CRM – Customer Relationship Management

This is the critical technology that must be available in your online store. The best place for the customers to interact is through this. Also, this is the medium through which the customer grievances are addressed as well. 

Finally, you require an appropriate shipping mechanism so that the customer receives the product on time. 

What Is the Future of the Hyperlocal Marketplace?

With 81% and more customers inclined to online shopping, the trend seems to be pretty positive for hyperlocal marketplace solutions. The requirements of customers keep changing but the only mode through which it can be addressed is your online store. 

As a business owner, you must be constantly researching customer interests and their buying behaviour. This shall help you set up clinical plans and increase the business. Also, the trend in developing strategic digital marketing plans will be on the cards. Using content management systems and video-based marketing techniques shall be surging to bring traffic to your app and your website. 

How To Build A Hyperlocal Marketplace For Your Business?

For you to set up the D2C model, you primarily require hyperlocal marketplace software. This is the mode through which you will set up the online store. Of course, you might have to look for app development or a web development company to get the tasks done. 

You must also require a proper warehouse to store the products if you are planning for a bigger version of D2C. Timely updates of availability of the product must be available for the business owner too. As you do this, the app requires the basic features to help the customers navigate and choose the product.

Also Read: How to Develop an On-Demand Gas and Fuel Delivery Mobile App? – A Comprehensive Guide

Benefits of Building a Marketplace Based on a Hyperlocal Business Model

Setting up a D2C model for your organization helps you create a single system operation for the entire business. This shall be a standout chance for you to establish control over the business operations. 

You can also set the offers and discounts for several customers based on their purchase behaviour. The system shall be transparent and you can make informed decisions using the data that you shall get from the application too. 

Of course, there is increased revenue and the customer base shall increase drastically with the help of digital marketing methods. 

Key Features of Hyperlocal Marketplace

The Mobile application development shall be of greater importance in this venture. The features that need to be available in different categories shall be discussed in this column.

Admin Features

This is the centrifugal control for both vendors as well as the customer features. In fact, this is the mode through which you can get maximum reports and make any changes as and when required. A few features that are required are

  1. Customer Logins
  2. Inventory Management
  3. Online Payment Gateways
  4. CRM tool for customer interaction

Vendor Features

This is the prime part of your mobile application. The vendor features must include, online payment systems and accessing the same to generate reports. The links and features to identify the customer behaviour is a needed one too. Also, prime data analytics reports about the sales and comprehensive sales report generation must be a part of the application.

Customer Features

One must also understand that this is the domain that shall help you generate revenue. These must-have login areas, navigation areas and easy check out options.

Please Note: the features given in all three domains are for a basic setup. 

D2C is the trend from now on. Any business not inclining to this shall face a business decline for sure. If you do not have an online presence, it is time that you get in touch with your regions’ best mobile app and web development company


As with business enhancement, any organization would look for a strategic edge among its competitors. But, the scenario is reaching the survival aspects. Though retail options for purchase will not fade away, the consumer thought process to get it done through online mode shall surge drastically. Hyperlocal Marketplace shall be the saviour to most of the businesses from now on. Building delectable and high performing mobile applications must be your focus right now. Though infrastructure requirements are also on the cards, they can be adjusted with the existing units too. For the new business owners, getting into the digital mode of sales is what is necessary. Further, planning the digital marketing campaigns to increase web traffic should be a timely process in your business functionality.

If you have any plan to build your own Hyperlocal Marketplace, contact our experts to know how we can help you grow your business. We’ll be happy to answer any of your questions and see your company grow every day.

MultiQoS, a leading mobile app development company, can assist you in establishing the necessary technological infrastructure for hyperlocal delivery services. You can collaborate with our team to map out the future of your hyperlocal business, including the revenue model you want to use and how you want your mobile and web solutions to work and feel.

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Mitesh Modi

Written by Mitesh Modi

Mitesh Modi is the Sr. Business Development Manager at MultiQoS. He has in-depth knowledge of business services and IT operations. He works with clients in several sectors, including startups, commercial, education, tourism, banking & finance, entrepreneurship and technology.

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