How to Build an Equipment Rental Marketplace like Rent-A-Center

Over the years, the rental industry has seen dynamic growth as more and more entrepreneurs are using automation strategies to benefit from the sharing economy. More individuals now prefer renting over buying, not only is it more affordable, but it is a more sustainable way as it reduces carbon footprints. It is a well-known idea that we can rent out our homes, our automobiles, and other items as needed. However, renting equipment is a novel and developing idea that is quickly gaining popularity. Numerous unexplored market possibilities are emerging as the rental industry expands into e-commerce platforms. One such company that managed to make ground, Rent-A-Center is a furniture and electronics rent-to-own company.

This blog will be helpful to you if you want to start an online platform for renting equipment like Rent-A-Center. We’ve outlined the best way to build a website similar to Rent-A-Center below.

What is Rent-A-Center

Rent-A-Center is one of the top rental companies for furniture and electronic equipment, headquartered in Plano, Texas.  It was founded in 1973, operates in 50 states, and has nearly 400 franchise locations.

Rent-A-Center provides furniture, electronics, and household appliances, under rent-to-own agreements. They have flexible lease terms with low monthly payments and also provide the freedom to return goods whenever you want. They also offer free same-day delivery and maintenance services to their customers.

Business Model of a Rental Marketplace like Rent-A-Center

An efficiently curated workflow assures consistency and improves business operations. Below mentioned is the workflow for a rental marketplace like Rent-A-Center

1. The marketplace owner/admin invites different vendors to register and create their stores.
2. The vendor lists their products on the marketplace
3. The customer makes a booking by entering rental dates and submitting the rental fee inclusive of a security deposit 
4. The vendor dispatches the product as per the rental dates
5. Once the rental period is over, products are returned to the vendor
6. The vendor inspects the product for damages 
7. In case of any damages, the marketplace owner reimburses them with the help of rental security

What Drives Revenue of Rent-A-Center

Rent-A-Center drives most of its revenue from rental products like furniture and electronic items. According to Rent-A-Center’s latest financial reports, the company’s estimated revenue is $4.24 billion. To help sustain and create ample capital to support revenue generation goals, below mentioned is the revenue model of rental marketplaces like Rent-A-Center:

1. Rental Fees
2. Rental Commission
3. PPC Campaigns 
4. Featured Listings
5. Affiliate Sales

How to Start Your Own Rental Marketplace Like Rent-A-Center

To create a rental marketplace, you need robust equipment rental software. Primarily there are two types of rental software based on the hosting type, SaaS and Self-Hosted rental software.

Wherein the latter is a feasible option, as SaaS- Software as a service is a cloud-based software that restricts the ownership of the software. It is hosted on the server of the service provider. Moreover, the software is costly as it is a subscription-based model. Whereas the Self-Hosted rental software offers complete ownership of the software. It is hosted on the server of your choice. Additionally, it is a cost-effective option as it provides a lifetime license at a one-time cost.

Consequently, for an entrepreneur planning to embark on the journey of creating a rental marketplace like Rent-A-Centre, a self-hosted software solution is endorsed as a cost-effective and reliable software for your rental marketplace.

How Can Yo!Rent Help to Build an Online Marketplace Like Rent-A-Center?

Regular eCommerce solutions are not specifically developed for rental businesses. To address use cases like bookings, security deposits, and more, a dedicated equipment rental solution is required. Yo!Rent is an example of specialized software created with the rental market in mind. It is highly scalable and offers unlimited user profiles, admin accounts, product listings, and transactions.

Some of Yo!Rent’s rent-focused features that set it apart from other rental solutions are listed below

Rental Security Management

The rental security management system is a very useful functionality for the market because there are times when the rental item is damaged and the security deposit can be utilized to reimburse the damages. Additionally, the late cancellation and late return fees can be deducted from the security deposit.

Rental Add-ons

Rental add-ons are complimentary items that can be purchased at a reduced cost in addition to the main item. It is a technique for upselling and drawing more customers because it cuts down the time a renter spends on other websites looking for items that can be used with the main item.

Agreement Management and eSign

The process of signing the agreement electronically contributes to seamless agreement management between vendors and customers. Also, when businesses scale, it gets more difficult to manually maintain an agreement. With Yo!Rents functionality, owners upload the agreement, and customers are required to electronically sign it using the marketplace’s eSign tool.

Product Comparison

Customers face a difficult problem when trying to choose wisely from a variety of options. Switching between them to compare things is more time-consuming. By offering a thorough product comparison of up to 4 distinct products, Yo!Rent allows rental enterprises to completely avoid this issue.

Request-for-Quote Management

A Request-for-Quote Management module handles bulk and complex orders. Customers can use the RFQ module to share the requirements with the product owner and get a price estimate. This feature also allows the consumer to submit a counteroffer to the vendor’s quote.

Rent and Sell option

When a consumer likes a product and wants to buy it, Yo!Rent’s rent-and-sell features allow them to do so on the same platform. Additionally, the marketplace owner can put up a clearance sale for items that are no longer viable for renting.

Inventory Management

Even a minor error in inventory management can be difficult to rectify. Proper inventory management can benefit the business and help prevent over-stocking thus saving from unnecessary investment. Yo!Rent is distinctive in the inventory management system and comes with many features such as real-time tracking, custom stock alerts, unavailability management, inventory reports, etc.

Multilingual and Multi-currency

To allow customers and vendors around the globe to access the platform without any hassle of language and currency conversions, Yo!Rent has multilingual and multi-currency functionalities. To ensure smooth transactions, Yo!Rent has 20+ pre-integrated payment gateways for users.

Life-Time License

Yo!Rent comes with a lifetime license at a one-time cost without having to pay any recurring charges to access the platform. Furthermore, the team ensures a year free of technical support to assist you in the journey.

Conclusion

The online rental industry is growing quickly. However, the marketplace should not only be robust but it must also be versatile enough to accommodate essential changes. You must build a thorough marketplace that allows easy scaling and modifications and streamline all your rental operations right from automating invoicing to managing returns.

All aforementioned features make Yo!Rent equipment rental software a feasible option if you are planning to build a rental marketplace. Additionally, its industry-specific designs will help with branding and offer a simple browsing experience.