4 Reasons Why E-commerce is Coming For Equipment Rentals

Online shopping has been the "lifestyle" for many, especially in recent years. In well-developed countries, almost 80% of people have shopped online at least once. The COVID-19 pandemic has even brought up the demand for online groceries and food delivery services. This has changed consumer behaviour forever. 

When it comes to B2B transactions, e-commerce is relatively at its infancy stage. With the majority of industries starting to move towards digitalization and adopting e-commerce practices, it’s a matter of “when” and not “if” the construction industry will also follow suit. Let's discuss why we think e-commerce practices are coming for the construction equipment rental industry in Singapore.

4 Reasons Why E-Commerce is Coming for the Equipment Rental Industry

1. Change in Consumer Behaviour

According to a 2019 consumer survey conducted by the American Rental Association, more than a third of American contractors already expect their equipment rental transactions to be completed 100% online.

Separately, in its 2019 annual report, United Rentals (the world's largest equipment rental company) announced an incredible 66% increase year-on-year in self-service e-commerce revenue. This revenue stream includes their full range of equipment rentals, tools, and other services.

As often observed in other industries, the consumer behavior trends in western countries can serve as a good prediction and indication of the upcoming trends in the Singaporean market. To remain competitive and relevant in the market, catering to the change in consumer behavior should be a top priority for all equipment rental companies.

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2. Transition in Consumer Demographics

According to a Merit study, 73% of all B2B purchasers are now millennials, and millennials are no longer teens (Millennials are generally defined as people born between 1981 and 1995).

Millennials prefer to research and place orders for what they need online. As of 2019, it was reported that millennials do 60% of all their personal shopping online. This shopping behavior will inevitably carry over when millennials are conducting B2B transactions on behalf of their companies. 

Most construction businesses in Singapore are family-owned and are still fairly traditional. But as the previous generation retires, they will eventually pass on their business operations to millennials. With the younger generation and new members joining, this transition in consumer demographics will spearhead the construction industry’s adoption of e-commerce and digitalization.

3. Consumers Research Online First

These days, procurement executives and quantity surveyors are utilizing technology and digital channels to work smarter and faster. This also includes going online to check for equipment rental prices, specifications, and other information.

The older generation might still call up equipment suppliers one by one for quotations and clarifications. This traditional sourcing process is very time-consuming and might not yield the best results as a person’s network of suppliers is limited.

The newer generation now prefers the efficiency and transparency offered by an online e-commerce platform. Where they can view all the information they need at a glance in just a few clicks.

4. Preference for Digital Platforms

The COVID-19 global pandemic has forced everyone further into the digital world and exposed companies that were not prepared to serve their customers online. Many businesses saw huge increases in e-commerce revenue, whereas physical in-person sales were close to non-existent.

This demand for digitalization will undoubtedly outlast the pandemic. When everyone goes back to the office and construction projects are being rolled out again, consumers’ preference for digital platforms will not change.

Equipment rental companies that took action adopting digitalization will come out the other side of this pandemic more efficiently and effectively. Those that do not will risk getting left behind by the market.

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Antbuildz.com: The gateway to E-commerce for Construction Equipment Rental in Singapore

Antbuildz.com is Singapore’s First and Largest online construction equipment rental platform. You can now Search, Compare and Rent all types of equipment in just a few clicks. Be it one day only or months, every equipment rental made on Antbuildz.com will be protected with Antbuildz Machinery All Risk Insurance that offers up to S$15,000 first loss coverage. We are the only company in Singapore that covers you with equipment rental insurance, and it’s FREE!

Looking to rent out your own equipment? You can also sign up and become our Antbuildz.com Rental Partner today! Here's why you should join us:

1. Unlimited free equipment listings in just a few clicks.

2. Access to a broader range of users across Singapore.

3. Solve your payment collection issues with our on-time payment.

4. Protect your equipment during rental with Antbuildz Machinery All Risk Insurance.

To learn more, visit our Partner's Guide here.