Things to know in building online rental marketplace platform

Things to know in building online rental marketplace platform
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Kowsika SEO Analyst
2019-02-01
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What is online rental marketplace?

Online rental marketplace is getting bigger and highly demanded in terms of economic activity and spending.The current scenario is changing with a tremendous shift from owning to renting. Today, people are looking for available on rent that creates more value for money compared to owning. The online service marketplace is known as “rental marketplace”. Rental oriented marketplace is more profitable and challenging than any other service oriented marketplace. Choosing the right marketplace business model for your business is the key for successful marketplace.

Rental marketplace has 3 phase of life cycle

  •         Booking product and services
  •         Services during booking time
  •         Getting back product or services

The rental marketplace involves renting of goods with high percentage of net worth such as vehicles, homes. It’s one too many transaction type. Renting makes sense when the frequency of usage is less and owning involves huge investment. It’s the game of supply and demand. Demand is created by many. Best example for this is “Car renting” one car can be rented by many customers with different time frame.

Why online rental marketplace?

Want camera for vacation, need stay in different cities, need a vehicle to travel, there are multiple online rental marketplace available to rent out products and services. Online rental marketplace connects multiple business and individuals together to provide wide range of products on consumer who needs it. Today younger generation is more on mobile shifting to new cities for job, renting good is most viable solution for them.

Business jumping into provides goods on rent; consumers are able to get goods in no time spending only a small fraction of ownership cost.

Major challenges in online rental marketplace

Challenges in Online marketplace aren’t few. The growing demand for rental marketplace, challenges become more. The challenges in rental marketplace depend on industry you are focusing on.

Analytics

Analytics helps to understand customer needs and their expectations. Business insights give you clear view of how customer behavior changes over time with expectations. Understanding customer’s needs and offering services as per customer requirements make you to retain most of potential customers. Analytics helps to enhance the service provided to customers.

Logistics

Online marketplace works on one to many models. Many customers rent for same good for particular time frame. Managing the logistics in online rental marketplace is based on optimizing supply and demand. If you have number of good in your inventory carrying cost applies. Analytics comes to your rescue to optimize supply demand that produces more profit and less cost to business.

Focusing on quantity

In online rental marketplace, quantity is necessity, but optimized quantity is essential. To cater to consumer demands, enterprises either increase the quantity or decline quality. Same way good or product is used or rented by multiple consumers; Quality of good must be consistent. 66% of customers said that features and quality of product or service were most leading factors in determining brand loyalty.

Revenue model- Rental marketplace (Airbnb clone script)

  • Listing fee
  • Commission fee
  • Banner and Advertisement fee

If you are looking to develop online rental marketplace similar to “Airbnb”, HomestayDNN airbnb clone offers perfect solutions for your business software needs.