Questions

What is the Best Solution to Launch an Online Marketplace for UAE Based Equipment Rental Business?

Looking to launch an online rental website for my UAE based heavy construction equipment rental business, please suggest a best possible solution for me.

2answers

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.


Answered 10 months ago

The online marketplace can be broadly classified into 3 categories on the basis of target audience:

Business to Business (B2B)
Business to Customer (B2C)
Customer to Customer (C2C)

Business to Business (B2B)

It is a type of online marketplace which acts as a mediator between the seller and the buyer, where the trade of products and services takes place in large quantity.
This kind of marketplace requires a lot of investment and consistency, and is hard to establish initially. But once it is established it becomes very profitable and builds up wide range of customers. B2B marketplace is a preferable choice for most of the sellers as:

They are not required to make their own ecommerce trading website.
It provides wide range of customers.
It is quick and efficient.
It does not require much investment.

Being a mediator, B2B marketplace has different business strategies and set of terms and conditions for its sellers and buyers.

Based on Commission

It is used most frequently, as the big industries can easily adopt this method and sell their products by giving some percentage of commission to the mediating platform for providing the customers. Some of the examples are Alibaba, freelancer etc

Based on Subscription

Subscription based method is usually opted by companies who already have customers and buying subscription won’t be much big of an investment. For example, fashion brands etc.

Based on Listing Fees

Marketplaces like Etsy take fee for listing the products and add additional commission charger to every purchase made.

Business to Customer (B2C)

It is another kind of marketplace where the business industries do not sell their products or services to another business industry but to the customer directly. This kind of marketplace is most popular these days as it helps direct interaction with the customer. For example, AliExpress and makemytrip.

Just like the B2B marketplace B2C also have different types of business strategies and set of terms and conditions.

Based on Commission

B2C marketplace requires the provider and receiver of the service to pay an amount of commission for the delivering and mediating the service or products. Travel sites like travelyaari, makemytrip, red bus widely use this method.

Based on Subscription

Unlike B2B marketplace, B2C marketplace requires only the seller to pay for the subscription and not the buyer. For example, eBay.

Based on Listing Fees

Along with the commission, there are some sites like Etsy which also charge listing fees of about $0.20 for premium listing etc.

Customer to Customer (C2C)

C2C marketplace is the most convenient form of marketplace as it allows people with same interest to share the products and services. Peers can share their services or products they want to offer to people who wish to take those services. It is a very organic way of reducing unemployment as it provides a platform to all range of service providers. A buyer can be a seller tomorrow with no bars. For example, Uber.

Unlike B2B and B2C marketplace, C2C marketplace has different business strategies and terms and conditions.

Paid Promotions

The service provider can promote its product or services by paying some amount to the marketplace, in order to standout. It helps them attract customers and build up their business. Paid Promotions can be further divided into 3 parts.

Sponsored Vendor profiles
Featured Products and Services
Promoted Products in cart/at checkout

Advertisement

Another method is promotion of the product or services by the third party through advertisement. Advertising methods can be further divided into 3 parts.

Cost per Impression
Cost per Click or Pay per Click
Cost per Period

With the emerging trend of virtual marketplace, there is increase in competition which has open doors for opportunities for so many entrepreneurs and businesses. Therefore, it is very important to know your space of strengths.

I've successfully helped over 150 entrepreneurs, startups, and businesses, and I would be happy to help you. Please send me more information before scheduling a call - so I can give you maximum value for your money. Take a look at the great reviews I’ve received: https://clarity.fm/ripul.chhabra


Answered 10 months ago

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