Due to the minimalist lifestyle approach of millennials, the demand for furniture rental is on a surge. In contrast to the traditional way of carrying old furniture to the new house, a great deal of 21st-century consumers instead prefer the renting option. The advancement in technology has also brought both the renting and buying options closer to consumers more than ever, and the market share forecasts of the online furniture rental industry indicate a promising future.

The million-dollar question that still remains is the business model

To help you understand how the online furniture rental marketplace works, we have discussed its business model below.

In this business model, mainly three entities are involved.

Website visitors who are the rentee
The admin who is the usually the owner of the website
Furniture manufacturers, merchants, and individual dealers collective known as vendors

How the Model Works:

Step 1: The vendors upload their furniture at a specific rental cost
Step 2: The interested rentee deposits the entire amount plus security to the admin
Step 3: The admin processes the amount to the vendors after deducting his commission
Step 4: The vendor delivers the furniture product to the rentee
Step 5: On return, the vendor conducts a thorough inspection for damages
Step 6: In case if no damages are found, the admin returns the security amount to the rentee without any deductions
Step 7: If the product is returned in damaged condition, the admin deducts the repair costs from the security and transfers it to the vendor

Some of the popular furniture rental marketplaces that are thriving on a similar business model are CORT (USA), Fully Furnished (UK), Pabs (Australia), and Furlenco (India).

Starting online marketplaces also appear lucrative to entrepreneurs due to the multiple revenue streams that are available on an eCommerce store. We have discussed some of these streams and the essential features of an online furniture rental store in our detailed article that you can read here.