Main Differences Between Hyperlocal Delivery And Last-Mile Delivery

1) Overview

The eCommerce logistics industry is chock-full of a variety of different services to streamline shipping operations, optimise fulfillment and improve customer experiences.

Hyperlocal delivery and last mile delivery are two such services. Both of these services are new to the e-commerce industry and therefore come with a fair share of things to consider. They both bear numerous similarities.

They consist of deliveries made directly to customers transported over smaller distances. However, there are also many differences between these two. While hyperlocal delivery is offered as a specialised service, last-mile delivery is a part of the normal delivery mechanism to be carried out by any shipping company.

In this article, we’ll be taking a closer look at the differences between the two. The introduction of hyperlocal delivery services by courier companies has in many ways revolutionized the e-commerce shipping ecosystem by making deliveries extremely fast.

The last-mile delivery service, on the other hand, is responsible for ensuring that all orders are fulfilled in a timely manner and that the packages received by customers is always in the best shape. Both of these services are expensive because of their high demand and the skillful operation of courier teams.

We are going to talk about the differences between hyperlocal delivery and last mile delivery services. But before that let's dig in a little deeper and find out what each of these services entail.

ClickPost's experts in shipping and marketing tell us that these two terms - hyperlocal delivery and last mile delivery, are often interchangeably used. We understand why this confusion exists and we are here to bust the misconceptions. Let's start!

2)What is Hyperlocal Delivery?

Hyperlocal delivery, as the name suggests, is a service that enables faster delivery of goods for customers within a small geographical area. In hyperlocal delivery, goods or orders placed at e-commerce or online selling sites are directly sent to the customer from a local vendor or shop in that area.

A delivery qualifies as a hyperlocal delivery when orders are delivered to customers within the distance bandwidth of 15 - 50kms. The time taken for a hyperlocal delivery is anywhere between 45minutes to 2 hours. However, this time may vary depending on the proximity and availability of the local merchant sending the order. 

Hyperlocal delivery management software and service is a rapidly growing sector of eCommerce shipping and logistics services. It has enabled numerous different industries to grow rapidly from food to pharmaceuticals. For eCommerce businesses, hyperlocal delivery is a service with immense potential.

Although hyperlocal delivery is still a new delivery model in India as well as the rest of the world, many courier companies and logistics solution providers are already coming forward with this service. The main reason for this is the huge convenience it provides both for e-commerce vendors and their customers.

Hyperlocal delivery gives local stores in different locations an opportunity to sell every last bit of stock. This is because hyperlocal deliveries are typically completed within a few hours and use local shop owners to send orders to the destination address.

Many logistics companies, like Blowhorn, Shadowfax and Pidge, are now beginning to offer hyperlocal delivery services. This offers numerous eCommerce courier services provider companies the avenue to maximize order fulfillment.

3)What is Last-Mile Delivery?

After an order has been placed, its life cycle can be traced through a series of set steps. The first of these is the creation of the order and the last is ensuring its safe return (though not all orders go through this final stage).

The penultimate step in this process is last-mile delivery. After the order reaches its final in-transit storage, it must be delivered to the customer.

The delivery agent within that vicinity is then responsible for ensuring the order is transported from the central hub and dispatch centre to the customer's location and handed over.

For example, let's say, an order A leaves a warehouse in Mumbai to reach its destination in Delhi. The final leg of the delivery process, where the courier delivery agent picks up the order from a warehouse or hub in Delhi to deliver it to the customer's doorstep is called the last-mile delivery.

4)List of Major Differences Between Hyperlocal and Last-Mile Delivery

Down below we have drawn up a list of the major differences between hyperlocal delivery and last-mile delivery in terms of shipping limitations, delivery process, order delivery times, etc. Taking a look at the table will give you a better picture of what these services can do for your e-commerce business.

5)What are the Key Benefits offered by Hyperlocal Delivery to & E-commerce Companies

Hyperlocal delivery in spite of being a new delivery model in the e-commerce courier and logistics industry has brought on immense innovation in how goods and orders are delivered. The buying trends of today's customers have also changed owing to the same-day delivery services introduced by Amazon Prime.

Although hyperlocal delivery can be difficult to implement because of the sheer amount of coordination and skill it takes on the part of logistics and courier delivery teams, it promises many grand rewards in return.

In the section below we talk about how offering hyperlocal delivery can help e-commerce companies gain traction, get more customers and keep those customers happy so that they keep coming back for more.

5.1) Reduced Logistics Expenditure

By sourcing products from the same or nearby locality of the customer, hyperlocal delivery brings the order many steps closer to the customer. In doing this, a large chunk of the shipping process, where an order leaves the central warehouse of an e-commerce company or courier partner and travels all the way to the customer's doorstep, is already eliminated.

This reduces the overall shipping cost of every order by getting rid of transportation fleets. There is another added advantage to this. Since products do not have to travel via air, sea, and land, the chances of product damage in transit also reduce considerably. A hyperlocal delivery service, therefore, cuts costs and losses on all sides.

5.2)Faster Delivery

As discussed above, since the hyperlocal delivery model does away with several steps of logistical operations, it makes the delivery of orders that much faster. A delivery is considered a hyperlocal delivery when the distance range of order delivery is between 15 - 50kms.

So, you understand, the time taken for a courier delivery agent to cover that distance and deliver that order will be somewhere between 45 minutes to 2 hours.

None of the other delivery models, not even same-day delivery, can beat the delivery times offered by hyperlocal delivery. In today's fast-paced world where the Amazon effect has already invaded the e-commerce market, lightning-fast deliveries are the only way to keep customers engaged and satisfied.

5.3)Enhanced Post-Shipping Customer Experience

Research shows that the shipping experience of a customer has a significant influence on customer satisfaction as well as customer retention. The second most hateable thing for a customer after product returns is a delayed order. Hyperlocal delivery lets e-commerce stores avoid this awful yet extremely common shipping malfunction.

By directly collecting goods from a local vendor, e-commerce companies can reach their customers much faster and also save up on shipping costs. A faster delivery experience that is uncomplicated and hassle-free is sure to enhance your customer's shipping and shopping experience.

5.4)Greater Visibility of Local Stores

Hyperlocal delivery provides better visibility and revenue by bringing local stores and merchants into the e-commerce shipping framework.

Since hyperlocal deliveries target local markets near the customer's delivery address, it enables brick-and-mortar stores to sell their products independently as well as through an e-commerce retailer.

This gives local stores the opportunity to increase their business reach and widens their audience. Hyperlocal delivery also benefits local shops by increasing their revenue and footfall in the local market.

5.5)Real-time Tracking

The best part of hyperlocal delivery after super fast deliveries is obviously the transparency is provided in Order fulfillment. Hyperlocal delivery service providers enable an order tracking feature on all outgoing shipments so that customers receive order notifications on their phone, email, and WhatsApp after every order milestone.

The transparency between the shipping and Order fulfillment channel and customers guarantees that no fake delivery attempts are made.

It also ensures that customers are constantly in the know of where their order is at a given point in time and have the ability to track, trace and find more about their orders. This fosters a sense of trust and understanding between businesses and their customers. 

6)Conclusion

While last-mile delivery and hyperlocal delivery share one common feature (i.e, direct delivery to customers), there are numerous differences between the two, as we have elucidated above.

Last-mile delivery is a duty of the logistics partner alone. Larger volumes of goods can be delivered through this process from much greater distances and cross-country warehouses.

Hyperlocal delivery depends on the workforce and stock available with local sellers and suppliers and is limited to orders of a specific nature and size.

Perhaps one of the most prevalent differences is that hyperlocal delivery is an added service to be availed by businesses, while last-mile delivery is a built-in service when it comes to ordering fulfillment.

As first responders in the e-commerce shipping industry, we at ClickPost advise you to really consider hyperlocal delivery for your e-commerce company in India.

Yes, there are a lot of logistical challenges in implementing hyperlocal delivery in India as a viable delivery option. But the benefits a business can reap from a delivery service like this are endless.

Hyperlocal delivery companies in India come with the added advantage of fulfilling orders much faster than last-mile delivery as the geographical area covered by the latter has fewer restrictions.

We hope this article has helped you understand the differences between hyperlocal delivery and last-mile delivery. We also hope it helped you determine which of these two services your e-commerce store needs right now and move toward it.