The newest rental business model in town that is making waves is the toy rental idea. Renting toys makes perfect sense to subscribers. People tend to spend a lot on toys- 1000’s of dollars, a quick research online says. And kids tend to forget toys after a while. Two major players in this business are Pley (formerly Pleygo, a clever pun on Lego and Play) and SparkboxToys. They are headquartered on either side of the continent and are part of an oligopoly of sorts, in the toy rental arena.
This is an industry that cannot survive without a shipping partner and a definite shipping and logistics strategy. So, what goes into an industry that ships each product once a week?
Needless to say, a freight partner and a solid deal is on top of the list. FedEx and UPS offer great deals and USPS is almost out of the equation since it requires the sender to go to the post office in person to send the shipment. A subscriber would think twice about doing this when he rents toys.
If a freight partner messes up with a shipment and deliveries, the reputation of the toy rental company goes for a toss. So, a reputed shipping partner is the need of the hour. Beyond a point in this trade, shipping cost is the most major cost.
So, what goes into the shipping strategy of a toy rental business?
Condition of toys delivered and received
Care has to be taken to make sure every piece in the particular shipment is intact when it leaves a household. A missing piece in the Lego set does not bode well for the business. So, the collecting personnel has to make sure that the unit has all the pieces in the same condition it was received in. This calls for a lot of training with the shipping partner and his associates.
Emphasis on on-time delivery
If a family has stated that they want a Lego set for the holiday season, when the weather does not permit outdoor activity and schools are off, they expect the toys to arrive on time. There is no way one can mess up with the delivery and ruin weekend plans for the kids. Delivering to adults is different. Disappointing kids is an entirely different thing. So, striking a solid rental shipping strategy is very important with toys.
Read more on holiday mess ups by major shipping carriers here.
The very least that a toy rental company can do, in this aspect is to track and automate shipping refunds. This brings down shipping overall cost.
Inventory basics
As with every other rental industry, there is a definite peak season- this coincides with school vacations, weekends, festive seasons, long weekends, celebratory times like right after school results are out and parents want to gift their kids something. So, the inventory has to be planned keeping this in mind. Subscribers should be made to freeze their rental plans well in advance in order to make the shipping smooth.
Read more on inventory basics here.
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