Last Updated: 8th October, 2024
COVID-19 has set up many prospects for the rental industry. Digital technology has transformed the traditional rental businesses from designer dresses to office workspace to bike rental. There’s a growing shift towards the sharing economy, evidenced by the huge rise in demand for furniture rentals in this era.
The global furniture rental market is expected to experience a compound annual growth rate (CAGR) of 9.0% from 2024 to 2031, increasing from USD 47.04 billion in 2023 to USD 94.02 billion by 2031.
The Rise of Online Furniture Rental Market
As per the current trends, millennial are fueling the furniture industry. There is adoption and use of the latest technology in recent years.
Moving to a new place can be a dream come true situation but can’t leave behind the setting up of essential items like furniture. During unprecedented times, people used to shift from one city to another and take everything along with themselves. But millennials are brought up in a unique environment & culture. They embrace the concept of light traveling as they enjoy carrying less stuff. It’s the aspirational lifestyle that has spurred the incredible boom of online furniture rental marketplace around the world.
Leading Players in the Furniture Rental Market
There are quite a few well-known companies in the online furniture rental industry that are worth exploring. They all adopt a distinct business strategy to target different market segments.
Some of the major players dominating the furniture rental market globally are Cort in the United States generating a handsome profit of $512 million, RentFurniture in the United States earned $143 million revenue and LiveFeather in the United States claimed a turnover of around $7 million.
As per the recent statistics, Ikea is looking to roll out scalable furniture rental services and move its store to more centralized locations. The main motive of Ikea was to stop the disposing of furniture with movement from one place to another and promote recycling further contributing to sustainable living.
How does an Online Furniture Rental Marketplace work?
An online furniture rental marketplace comprises furniture marketplace owners (admin), original makers, and buyers. Once the furniture rental request is placed, it needs to get approval from the vendor. On approval, the commission deduction is transferred to the owner’s(Admin) account.
The requested furniture is shipped by the vendor to the rentee’s delivery address. Since furniture safety remains a major concern, a safety deposit is usually maintained in the Admin’s account. This can be refunded back to the rentee upon a safe furniture return. Depending on ‘Terms and Conditions’, deductions can be done from the security fee in case of an unsafe or delayed return.
Revenue Model of Online Furniture rental business
An online furniture rental marketplace can generate revenue in the following ways: –
- Commission on every transaction taking place on the website
- Advertisement on the basis of the number of clicks or views
- Featured listing on the focused spots of the website
- Subscription plan for reduced delivery charges, flat discounts or check on the quality assurance
Key Features that can act beneficial for Online Furniture Rental Website
To establish a successful online rental marketplace, certain features are essential. Here are such elements that you should consider before launching an online furniture rental marketplace.
- Simplified & Valuable Website Categories for Easy Browsing
Varied requirements of users should be met with different search options, allowing them to browse easily. Furniture rental marketplace named Cort offers fast, flexible and affordable options on the website. In this way, users are able to find what they are looking for easily while having access to subcategories under each category.
- Move-In Packages
Different categories are specified to present the ideas in such a way that they define proper clarity. Packages must be designed carefully to meet a diverse range of customer requirements. Moving to a new place with economical furniture rental packages will contribute to better achievement.
- Filtering & Sorting the Search Results
Furniture rental websites include a variety of items that becomes a challenge while searching. Filtering and sorting the results is the best solution to this. Users can easily locate furniture rental products or equipment by searching specific phrases or buttons. Further filtration can be made according to the rental duration and user’s budget or preferences.
- Product favorite wishlist
Saving items for a later purchase assists in better selection of the product for the user. Instead, push notifications need to be sent to the customers in case of any offer provided on the product.
- FAQ’s that convert Prospects into Customers
Frequently asked questions help users learn more about the website. They can be comprehensive or selective. Questions like what is a security deposit are very common. Types of payment methods of the rental furniture industry, breaking a lease, and leaving easily are some of the very important points. There is a need for a FAQ section on the website page that can help in drawing most of the traffic and converting more customers.
- Social Proof & User-Generated Content
Social proofs help in influencing the people when they are in the buying stage. First of all, the reviews are being read, and then the decision is being made for buying.
- Boosting engagements & measuring Customer Interaction
Keywords or search queries help in finding the right website. In other words, it’s the first step for going ahead. Noticeable features like “People also viewed” on the webpage might attract potential clients.
- Optimal Payment Methods for Increased Conversion Rates
The eCommerce industry has come a long way since its early days. Option of placing an order automatically and skipping the shopping cart step is an optimal method. There is increased convenience and security offered by digital payments such as credit cards, Paytm, and many more. Buyers need to understand the mode of payment of goods. There is no need to limit yourself to a single payment method because it might prove as a hindrance to the conversion.
- Choose simple & centralized Order management
The right order management plays a crucial factor in any business. It helps in monitoring the fulfillment of any kind of sale. Also, it facilitates resolving different types of disputes.
- Use Creative Deals such as Discounts & Coupons to drive revenue
Such marketing strategies help in driving the conversion rates. Push notifications are important for those who miss out on these exciting opportunities.
- AirTight Password Security
There are so many products that are sold online on a daily basis. Sophisticated security features help in protecting your online store. That’s why data privacy is considered to be the most important thing. It includes multiple authentication mechanisms such as token cards, security constraints, separate configuration mechanism & many more.
Contemplating the wise words
I hope this article could explain why launching an online furniture rental business makes sense in today’s economy.
Yo!Rent helps in meeting the growing demands of entrepreneurs by providing an extensive set of features with a separate dashboard for managing orders, products, and other settings. So, you can go ahead with this rental solution for starting your business and meet the requirements of various customers. You can drop your requirements by using the contact us form and also schedule a free personalize demo with expert.
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