Few Mistakes That Can Doom Your Hyperlocal Commerce Startup
Hyperlocal e-commerce business is thriving in the retail industry. Why? We all know that predicting consumer behavior is impossible so as their preferences change, retailers have to take a step forward and transform their processes to stay consistent in all aspects.
Consumers always expect fast, efficient, and quick services from their retailers. And being a startup retailer, you cannot afford to fulfill customer’s demands as they are always on the top priority. But some startups still fail to do so because of multiple reasons like budget constraints, few employees, poor market response, etc. You might have heard of big hyperlocal firms such as BigBasket, Grofers, Zopper, HonestBee and a lot more.
According to researchers, hyperlocal e-commerce will be the next big leading edge in the retail sector, delivering everything at the doorstep of consumers. Hyperlocal e-commerce is the amalgamation of online shopping and promise of local retailers contending the consumers well. However, the industry that overgrows faces new challenges, and the more you dig, the more problems you will come across. Therefore, if you are planning to start your hyperlocal business you need to be aware of common mistakes made entrepreneurs and ways to avoid them:
#Mistake 1- Stepping in the market with no focus on services and product offerings-
Every startup in the hyperlocal market don’t do their research homework properly because launching the same product in the competitive market where you will find small and giant players already selling the goods, will never make you successful. Why should a consumer switch to your brand from a long-term brand established in the market?
Solution: Always do your research work and try to be unique. Knowing strategies of competitors is one thing but replicating everything like them will take you nowhere.
For instance, there’s a Sweden-based firm namely Grastrofy that offers dietary food items, and it is only meant for people who are strict diet or always be on a diet. That ultimately makes them unique from others, and they also offer the users to follow their favorite chefs to gain some dietary cooking knowledge on their channels.
#Mistake 2- Inefficient last-mile delivery process-
The hyperlocal market is known for its efficient and quick delivery services and every business in this sector has to be proficient with its delivery process. However, last-mile delivery has its own set of challenges as the firm has to rely on logistics companies to pick the product from different hubs and take them to the final destination. And many entrepreneurs fail in this process at the initial stage as they join hands with useless companies who are just smart at flaunting.
Solution– Choose your logistic partner wisely and smartly. Always evaluate their skills and technologies they make use of like flexible sign-in, sign-out from preferred apps to maintain the balance of delivery boys, GPS tracking, etc. For instance, Grofers is one of the famous brands in Delhi that is connected with local retailers and delivers their service at the doorstep of consumers. And now they have become a giant logistic firm working with brands like Townrush and Spoonjoy as well.
#Mistake 3- Operating with a single touch-
Digitalization has become quite common today and being a startup; you have to be skilled in every digital aspect. Following outdated methods for your hyperlocal commerce store will keep your growth stagnant and eventually lead you to failure.
Solution– As per Micknsey research reports, brands with digital touch points are the one that will win the customer trust seamlessly. So make sure, you offer your products and services through websites, mobile app or mobile responsive site, etc. Keeping your business integrated with online and offline channels lead you towards healthy growth and allow you to earn higher profits.
For instance, Instacart- a leading US-based firm offering grocery to the customers whether the consumer order through an app or website, Instacard promises an hour delivery to their doorstep.
#Mistake 4- Not making a strong tie-up with local retailers-
Hyperlocal e-commerce is known for its efficient, quick and accurate delivery of goods and services. To be super-fast in shipment, you have to make strong relationships with local retailers to provide seamless delivery to consumers.
Solution– When you plan strategies for hyperlocal e-commerce business, don’t forget to add this factors. Go out in the market and tie-up with marts to make the process easier.
For instance, Honeybee, when they started their business in Singapore, firstly they tie-up their business with six specialty store in the local market including big markets and frozen stores to gather all the products mentioned in the list and deliver everything in an hour!
#Mistake 5- Investing less in marketing and HR-
Well, being a startup- finances are your biggest constraint. But you have to be wise enough to invest in essential departments to stay ahead of the competitors. Neglecting marketing and HR department can be your biggest mistake as hyperlocal e-commerce store are in promising age, and many people are not ready to accept that someone can deliver their daily products and grocery to their doorstep. So without marketing and employing the right people you can never achieve the desired goals.
Solution– Marketing will help you deliver quality goods to consumers by reviewing all the products you receive from the supermarket and brand your company too and aware people. Secondly, HR will hire reliable personnel who are quick and efficient.
You know, when Peppertap started in India they mainly focused on hiring professionals to build inroads across the cities to operate in a better way. They also came up with reasonable offers to attract new customers
The hyperlocal e-commerce without any doubt will reach the pinnacle very soon. However, startups who are planning to initiate a business in this sector have to avoid the above-mentioned mistake to provide seamless on-time delivery to its consumers as it the only ladder to success in this competitive era for hyperlocal e-commerce owners, allowing them to stay consistent in the market.