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The system now offers you the option of providing Local Delivery as an alternative to regular shipping or store pickup. Here is a short video of how you can set up this option:

Setting Up Local Delivery

1. Click on the Admin Button > Settings > Website Settings > Shipping and look at the area for System-Configured Shipping Options.
2. Click the Configure button for System-Configured Shipping Options.
3. In the section for Domestic shipping methods, click the green button to Add Domestic Shipping Method.
4. In the System Shipping Method panel that opens, first set the method name to Local Delivery.

5. As soon as you set Local Delivery the window will change to allow you to enter ZIP / Postal codes. So, for example, if there are two zip codes within which you are willing to do deliveries for free, you could set the method up as pictured below, and then you could create another Local Delivery method with ZIP Codes a little farther away for which you would be willing to deliver for a fee. 

6. Be sure to set the Delivery Time to your expected time frame, as pictured above.
7. If you plan to charge a fee for the delivery, set the rate as pictured above in item number 3 for whatever fee you want to charge. If you plan to offer free Local Delivery, set the Rate to 0.00. You can set up multiple Local Delivery methods if there are ZIP Codes you would deliver to for free, or for a higher fee. All ZIP / Postal Codes listed will use whatever fee you set here, if any.
8. When you have everything in place, scroll to the bottom of the panel and click Save.

After this is set up, the Local Delivery option will appear with your other shipping methods for online orders that qualify based on the zip codes / postal codes you set, as pictured below.