Web-based rental platforms for clothes and accessories have been gaining popularity amongst youngsters, particularly women. Websites such as Le Tote, Bag Borrow or Steel, and Rent the Runway have attracted the style-conscious women who prefer wearing designer wear to stay in trend with the latest fashion vogue. The fashion industry continues to witness the arrival of a range of online clothing rental business, from services to third-party mitigation. As the global market for online clothing rentals expands vigorously, one must understand the true dynamics of running these businesses before entering the market.
The process of renting clothes online has been simplified by several leading web developers across the globe. New technologies have enabled the online dress rental marketplace towards inspiring budding entrepreneurs and fashion start-ups. The key highlights on running an online clothing rental business have been mentioned below.
Tips on Running an Online Clothing Rental
One must remember that an online clothing rental business is always more than just a fashion company. It is technology enterprise that has reinvented the way fashion has been traded. The business model for online clothing rental services is largely based on collaborations with top apparel agencies and fashion designers. The key objective of an online clothing rental service is to provide its customers the access to newest accessories and outfits at a reasonable rent.
As the owner of an online clothing rental website, your job is to rent out clothes and dresses that are in trend and discard the ones that have gone out of fashion. This allows the business to represent the fresh and updated quotient to the customers. The business should allow the rentals for a week or more, so the customers are diligently satisfied about the reliability of the clothes being rented and the trust rapport created by the company. Charging a certain percentage of the whole retail price as a rental fee is the revenue generation exercise for this business. This price should also cover the delivery and pick up, dry cleaner and other minor costs.
While being dispatched from the company’s inventory unit, the online clothing rental business remains to a pre-packaged and pre-paid clothing business. Companies in the global online clothing rental market are also instating a provision of holding huge deposits or insurance fees for clothes with high-grade workmanship, in case of accidental damage or un-intimidated extension of rental period.
Online Clothing Rental Platform – Business Model
It all begins with the customer who is expected to login to the website and create his or her user profile. This customer profile enables the company to maintain a database of its clients. After logging into the website, the customer can search for the cloth to rent, select it and add to the rental cart. With easy transaction options, a full payment of the rent is made online.
The online dress and accessories rental platform receives the payment and lists the selected clothing items for rentals. With limited stocks, the website shows that the clothes have been rented out and are not available for others. After buying the dress form designers and apparel manufacturers, the selected clothing is sent to the customer to the mentioned and verified address. After the stipulated rental period, the dress is returned to the site as the customer hands it over the return after usage personnel. A thorough inspection of the clothing is done and the customer is charged for accidental tear or stains.
Some online clothing rental services also provide discounts on bulk renting, which is quite suitable for corporate holding fashion shows for the annual gatherings.