How to Launch an Online Furniture Rental Marketplace – Business Model & Key Considerations

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Overview of Online Furniture Rental Industry & Bootstrapping Strategy

Travelopro is a furniture marketplace for renting high-end furniture, art and accessories at accessible prices, and it's a solution that serves a wide range of customers.




How to launch an Online Furniture Rental Business Marketplace?

How about launching an online furniture rental business marketplace to enhance your business visibility and operate your business at ease? But to begin with, you must understand why furniture rental startups are booming nowadays.

The culture of owning furniture is diminishing as the mindset and tastes of the people change when there is a new design or a trend that sets in, hence they rent furniture. To keep up with the changing economic set-up, we as business owners have to start running our business differently. 

Why Is The Online Furniture Rental Business Booming Now?


The rental business basically works with more customer psychology than that of any other aspects. 

  • The problem of shifting from one place to another could be eliminated when we rent furniture, if at all the renter shifts again – no heavy packing and moving will be involved.

  • Ease of renting according to the space that renter moves into.

  • The furniture owner can circulate the old furniture and make money out of it.

  • More choices available when it comes to renting and the users can adapt to their lifestyle.

  • The demand for renting out furniture for offices, educational institutions, and other multifunctional purposes is always present.


How Could You Operate An Online Furniture Rental Marketplace?


Taking your traditional furniture rental business to the next phase using an online marketplace will enhance your business performance to an extent that just requires your supervision. Effective operations are completely based on the features that you provide to your users.

How does an Online Furniture Rental Marketplace work?


An online furniture rental marketplace comprises furniture marketplace owners (admin), original makers, and buyers. 

Once the furniture rental request is placed, it needs to get approval from the vendor. On approval, the commission deduction is transferred to the owner’s(Admin) account.

The requested furniture is shipped by the vendor to the rentee’s delivery address. Since furniture 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 furniture return. Depending on ‘Terms and Conditions’, deductions can be done from the security fee in case of an unsafe or delayed return. 

Which Business Model Works Best For Furniture Rentals?




When it comes to furniture on rent, there are three types of business models that startups look to deploy. Despite whichever model is chosen, companies that currently operate in this market offer furniture on a subscription rental basis. 

With a full-stack model come large inventories and with large inventories come storing and warehouse costs. If the products do not have a movement cycle where they move out faster and stay for longer, it may result in higher costs for the company.

It can either buy and own the furniture that it offers on rent, or act as a marketplace for other furniture providers or adopt a full-stack model where it builds the furniture and owns the entire value chain from development to delivery.

As the cost of customer acquisition is quite high, the subscription or recurring revenue business model makes sense for furniture rental startups. The subscription model also helps retain customers under a long-term contract, rather than startups chasing repeat purchases.

A furniture rental company that operates as a full-stack company believes that the model allows the startup a lot of flexibility. “We manufacture most of our products in-house and easily fix the older inventory to refurbish it and give a new, modernized look. This recycling process gives us a great edge when it comes to managing inventories.

Revenue Model of Online Furniture rental business 


Since a business cannot survive without revenue channels so here we’ll discuss the most lucrative sources of revenue for the eCommerce furniture marketplace:

Product Sale: The first and foremost revenue channel for the eCommerce marketplace is the sale of its products. When a customer places an order and makes payment online, the transaction money minus the admin commission goes to the marketplace vendor.

On-page Advertisement: Advertisement is a major revenue source especially on-page advertisement. By implementing effective digital marketing strategies partnered businesses get more exposure that may result in improved sales figures. With on-page advertisements, the eCommerce marketplace enjoys higher traffic generating more revenue for admin and sellers.

Commission Fee: A commission fee is a direct revenue source for admin that is deducted from every purchase. When the buyer makes payment the transaction money passes to the admin who then transfers it to the vendor’s wallet after deducting the commission fee. This commission per sale is different for every marketplace and is decided by the admin beforehand.

Subscription Membership: Premium memberships are a valuable source for marketplace owners to earn steady revenue. In an eCommerce business, subscription memberships can offer several benefits like free delivery, one (or two) day shipping, zero transaction fees, and more. These benefits will entice users and build repeat customers.

Key Features That Can Act Beneficial For Online Furniture Rental Website


To establish a successful online rental marketplace, certain features are essential. Here are such elements that you should consider before launching an online furniture rental marketplace.

Choose simple & centralized Order management


The right order management plays a crucial factor in any business. It helps in monitoring the fulfillment of any kind of sale. Also, it facilitates resolving different types of disputes. 


Use Creative Deals such as Discounts & Coupons to drive revenue


Such marketing strategies help in driving the conversion rates. Push notifications are important for those who miss out on these exciting opportunities. 


Move-In Packages


  • Different categories are specified to present the ideas in such a way that they define proper clarity. Packages must be designed carefully to meet a diverse range of customer requirements. Moving to a new place with economical furniture rental packages will contribute to better achievement.


Simplified  & Valuable Website Categories for Easy Browsing


  • Varied requirements of users should be met with different search options, allowing them to browse easily. A furniture rental marketplace named Cort offers fast, flexible, and affordable options on the website. In this way, users are able to find what they are looking for easily while having access to subcategories under each category.


Filtering & Sorting the Search Results


  • Furniture rental websites include a variety of items that becomes a challenge while searching. Filtering and sorting the results is the best solution to this. Users can easily locate furniture rental products or equipment by searching specific phrases or buttons. Further filtration can be made according to the rental duration and user’s budget or preferences.


Product favorite wishlist  


  • Saving items for a later purchase assists in better selection of the product for the user. Instead, push notifications need to be sent to the customers in case of any offer provided on the product.


FAQ’s that convert Prospects into Customers


Frequently asked questions help users learn more about the website. They can be comprehensive or selective. Questions like what is a security deposit are very common. Types of payment methods of the rental furniture industry, breaking a lease, and leaving easily are some of the very important points. There is a need for a FAQ section on the website page that can help in drawing most of the traffic and converting more customers. 


Social Proof & User-Generated Content


Social proofs help in influencing people when they are in the buying stage. First of all, the reviews are being read, and then the decision is being made for buying. 


Optimal Payment Methods for Increased Conversion Rates


The eCommerce industry has come a long way since its early days. The option of placing an order automatically and skipping the shopping cart step is an optimal method. There is increased convenience and security offered by digital payments such as credit cards, Paytm, and many more. Buyers need to understand the mode of payment of goods. There is no need to limit yourself to a single payment method because it might prove as a hindrance to the conversion. 


AirTight Password Security


There are so many products that are sold online on a daily basis. Sophisticated security features help in protecting your online store. That’s why data privacy is considered to be the most important thing. It includes multiple authentication mechanisms such as token cards, security constraints, separate configuration mechanisms & many more. 


Boosting engagements & measuring Customer Interaction




Keywords or search queries help in finding the right website. In other words, it’s the first step for going ahead. Noticeable features like “People also viewed” on the webpage might attract potential clients. 

Wrapping Up:


The freedom & flexibility which comes from renting furniture according to the latest trends and personal taste is unparalleled. 

A choice of lifestyle, sustainable living with a low carbon footprint & a minimalistic approach of millennials has led to the proliferation of the online rental industry

Setting up an online furniture rental marketplace isn’t complex if you have the right technology partner. We at Travelopro have helped a number of rental businesses, with our perfect solution. Get in touch for more information.

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