Myself Bhavmeet, as a business consultant having a experience of 4+ years and help you to grow your business or startup firm through complete analysis, and strategy of various business module and up trending technologies.
I think it is possible to launch a rental eCommerce store for construction equipment business but it is not that simple. It depends on the approach you take. Not many people are aware of this but there are some rental marketplace solutions already available in the global market that can be used to launch online rental stores.In UAE, launching an online rental store for heavy equipment is a lucrative idea considering the increased construction activities in the region and 3.3% CAGR of the heavy equipment rental industry in 2018-2024.
When you create a website from scratch, especially for a unique type of business like a rental ecommerce store, it requires advance planning, including finding a feasible business model and developing an MVP. On the flip side, the benefit of ready-made marketplace solutions is that their feasibility is already proven. They don’t require excessive research and resources and limit the business establishment journey to a mere sell and buy transaction (that’s if you don’t require customization).
The business model of a construction equipment rental store would be something like:
- A visitor adds your equipment to the cart
- Selects the rent duration and pays rent + security deposit
- Returns the equipment after using
- You deduct the damage amount from security and return the money
I did a little research to educate myself better and found a company that is doing the same thing you are looking for. Tenderd is UAE-based company that deals in construction equipment. It does not sell the equipment but only lends. Tendered was launched in 2018 and was able to raise $5.8 million seed funding with more 3000 equipment to rent within a year of its launch.
If Tenderd fascinates you then Investing in a white-labelled rental marketplace solution(https://www.yo-rent.com/) and rebranding it is a very reasonable option to get started with your online construction equipment rental business. It also comes with the following benefits to resolve various pain points of a business owner:
* They improve your online visibility, do branding, and build trust
* Provide access to a larger audience promoting long distance business operations
* Streamline payment processing and management via third-party integrations
* Increase price transparency facilitating a competitive advantage for the marketplace owner
* Provide passive income streams like PPC ad campaigns, paid featured banners, affiliate marketing and monthly subscriptions
* Easy to market via social media channels, Search Engine Optimization, and email newsletters
Hope you liked my answer.
As per Allied Market Research, the fitness equipment market size was valued at $11.5 billion in 2019 and is projected to reach $15.2 billion by 2027.
The COVID-19 outbreak has indeed shaken up the health and fitness industry in a way no one could have imagined a few years ago. The national lockdowns meant the gyms and fitness centers had to remain shut until the virus could be contained. This is an unprecedented crisis for a number of gyms around the world, but the situation has spurred businesses to adopt new ways to cater to their loyal clientele.
Gear rental is one way in which fitness centers are looking to serve their customers. This is a sensible approach as it allows gym enthusiasts with much-needed gear such as resistance bands, cycling bikes, weights, treadmill, dumbbells, and many more to continue their training at home without the risk of being exposed to the virus. The idea of gym equipment rental was popularized at the start of the pandemic by GymLend - a Sydney-based startup that invited local gyms in the region to list their equipment on rent. GymLend quickly shot to success and is now serving multiple cities across Australia.
This is clear evidence that the concept of a gym and fitness gear rental is both feasible and profitable.
Let’s take a look at Gym & Fitness Gear Rental Marketplace Business Model
An online fitness gear rental marketplace comprises a marketplace owner(admin), several gym gear owners(renter/vendors), and individual customers wanting to rent the said gear(rentees).
The rentees can look up listings on the platform based on their geographical location. They can select the gear they would like to rent. Once a gear rental request is placed, it needs to get approval from the gear owner. On approval, commission charges are transferred to the owner’s(Admin) account.
Rentees can select the shipping method that’s most convenient to them, viz. self pick-up or doorstep delivery while placing the request. Since gear 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 gear return.
Revenue generation model of a Fitness Gear Rental Platform
An online gym and fitness gear rental marketplace can generate revenue from multiple channels such as follows: -
Commission through every transaction
Advertising on the marketplace
Featured listing as an initial focus during peak hours
Subscription plan with a wide range of benefits such as free delivery, fixed discounts & much more
Key Players Dominating The Gym Equipment Rental Industry
In 2019, the fitness industry valued at nearly $100 billion globally. Some of the vital players that dominate the market globally are A.E.S. Fitness in New Jersey generating a handsome revenue of $1.5 million, FitDel in Texas earned $0.6 million profit, and HireFitness in the United Kingdom claimed a turnover of around $3 million.
How to Set-up a Gym & Fitness Gear Rental Marketplace?
Instead of building such a marketplace from scratch that would be an expensive and time-consuming process, I recommend going in for a white label turnkey solution such as Yo!Rent that can be deployed in a few days. It offers all the essential features to launch an online gym and fitness gear rental marketplace such as: -
Renting & Selling option.
Real-Time Stock availability.
Intuitive UX design.
Powerful Mobile Apps.
In-Built Analytics & Reporting.
If you have any queries regarding the information shared in this answer or need expert advice for setting up an online gym and fitness gear rental marketplace - https://www.fatbit.com/fab/guide-to-start-online-gym-fitness-equipment-rental-marketplace/, please feel free to connect with me.