Amazon Passing On Massive Rental Opportunity

While Amazon continues to lead the way in innovation that is critical to the modern economy, the company doesn’t necessarily take every opportunity out there.

According to Business Insider, the market for rented items is growing fast, and neither Amazon nor other big retailers have made serious moves to make some extra money from this segment of the retail market.

Retail rental sales are projected to reach $2 billion globally by 2025, and several large brick-&-mortar retailers are already cashing in. Urban Outfitters and other retail chains are already allowing customers to rent clothes and competition in this new market is already taking place. As members of Gen Z grow up, this trend is expected to gain even more traction.

Rentals are gaining popularity as a trend in several industries. For the most part, rental clothing has been at the forefront of the new rental phenomenon, but pretty much anything you use can be offered to you as a rental. Some retailers, such as REI, are expanding their rental programs significantly. This is especially true of high-priced brands, which stand to gain much new business by providing a cheaper way for many consumers to get their foot in the door. Even when people don’t want to buy pricey clothes, these retailers have just completed a new kind of sale that otherwise would’ve never taken place, increasing their revenues one way or another. Many young people want to wear pricier apparel, but without having to buy it.

While Amazon hasn’t jumped on this opportunity yet, others are trying. Despite these people’s efforts, it is very difficult to try to make a rental business without the kinds of resources Amazon has. Rentals are low-margin businesses that currently might not justify the big players’ attention, but the opportunity will just be sitting there until someone jumps on it.

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5 years ago
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