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How to Start an On Demand Home Service eCommerce Business

Last week, I went to look for a new house for rent in a new city. I found a house with a beautiful backyard, a family pool, and a classic interior. 

When I entered through the main gate, the first thing that came to mind was, ‘‘The lawn needs to be mowed.’’ After entering the house, I thought, “Oh damn… the walls & ceilings need a renovation ASAP!” 

Let me be honest with you. 

Though the house might look a bit old-fashioned, it was worth every penny I was about to spend. The house was a few blocks from my office, and the grocery shop was just a third block around the corner. It was a win-win investment. But first, I need to do some renovation

But when will I do all of these with a full-time job? So, I ordered home service online. 

While taking service, I felt I needed to know everything about this modern-day service that’s made our lives “A Walk in The Park.” And, I should share my knowledge with you about the on demand home service business eCommerce.

In today’s blog, I’ve poured my heart and soul so you can learn everything about the on demand industry and how to start your own eCommerce business. 

Let’s jump right in 🦘

What is On Demand Home Service Business?

To understand the “on demand home service” term, we first need to understand what exactly “on demand” means. The concept of “On demand” refers to a business model or service where goods, services, or information are made available to users immediately or as needed. Here are a few On Demand Service App common examples:

On Demand Streaming

Services like Netflix, Hulu, and Spotify provide on-demand access to movies, TV shows, and music, allowing users to watch or listen whenever they want.

On Demand Transportation

Ridesharing services such as Uber and Lyft allow users to request a ride on-demand, providing transportation whenever and wherever needed.

On Demand Food Delivery

Platforms like DoorDash, Uber Eats, and Grubhub enable users to order food from local restaurants and deliver it to their doorstep.

On Demand Home Services

Platforms like TaskRabbit connect users with freelancers who can perform various tasks and services on-demand, such as cleaning, moving, or handyman services.

On Demand Printing

Some printing services allow users to order custom prints or products on demand, eliminating the need for bulk orders.

On Demand Home Service Market Share

On demand home service or handyman service-providing businesses are often available digital platforms for users to access and consume home-based services. According to Technavio, The home services market share is expected to increase to USD 5.14 trillion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 36.21%

Do you know, what is driving this industry so fast forward? It’s the increasing number of on demand startups. Guess what? You can! Keep reading to find out everything you need to know 😉

Types of Popular On Demand Home Service Businesses

The on demand home service is popularly known as the handyman service. People involved in these businesses are always determined to help customers with their service. 

8 Popular On Demand Home Service Businesses:

1. Home ServicesCleaning Services
Repairing Services
Pest Control
Lawn Care
2. Renovation ServicesBathroom & Kitchen Renovation
Apartment & Exterior Renovation
Office Interior Services
Basement Remodeling 
3. Automotive ServicesMobile Mechanic
Towing Services
Carwash & Detailing
Auto Repairing 
4. Appliance RepairRefrigerator & TV
Washing Machine
Microwave Oven
Water Purifier & Gas 
5. Pet Care & GroomingPet Sitting
Dog Walking
Pet Grooming
Tick & Flea Treatment
6. Moving & Storage ServicesLocal & International Moving
Residential & Commercial Moving
Short-Term & Long-Term Storage
Packing & Unpacking Services
7. Childcare & BabysittingBabysitter Booking
Child Grooming Services
Home Schooling Services
Assistance for Special Children
8. Beauty & WellnessSalon Services
Massage Therapy
Fitness Training
Spa Services 

Table: Types of on demand home service industries

These on demand home service businesses implement technology to connect service providers with individuals seeking specific services. You can offer convenience and flexibility in scheduling the services. 

If you can offer various services to your customers looking for home task assistance, you’ll win this market soon enough! 

Yes, yes, I know what you wanna say after learning so many business scopes available to you…

Components of A Home Service Business Platform

To find out if your chosen on demand eCommerce solutions is worth it, I’m going to walk you through the main components of a Home Service Business eCommerce platform- 

Admin Panel

The admin panel is the place where the business owner (you) will operate, manage and monitor the entire business. 

This includes monitoring provider & serviceman’s activity, ensuring customer satisfaction, increasing service popularity with promotional offers, taking business decisions based upon real-time reports, and so on. 

Service Provider Panel / App

If you’re thinking of launching a personal or single vendor on demand home service business, then the admin panel will be the place from where you manage your services. 

But if you plan to launch a multi vendor on demand service business, then a provider panel/app is a must for you. It’s a dedicated place for all the service providers (vendors) to manage their services while ensuring top-notch customer service. 

On the other hand, you get to keep track of your provider’s services and activities as an admin. 

Serviceman App

If you’re the on demand business owner, you’re less likely to provide all the services yourself. That’s when the servicemen or the handyman comes in. It’s the person who directly provides the service to the customer by going to their home. 

To keep track of the total services provided or total services assigned, find customers’ locations quickly, and receive payment from customers after service, the servicemen need a mobile app of their own. 

Customer App/Website

The entire on demand home service business is about providing helpful home-based services to the customers. To ensure customers can find suitable services, you must have a personalized app and/or website. 

It’s a place where the customer can feel at home and choose their favorite service provider, schedule the service at a preferred time, and enjoy flexible payment options.

Must-Have Features for A Home Service Business 

From essential to crucial, you must take care of all your customers’ needs. To start a home service business platform, you need to make sure the solution you’re choosing is future-proof and authentic. 

All must-have features of a home service business platform-

  

1. Dedicated Panels & Apps

As described above, it is crucial to have dedicated web panels & apps for individual users according to their journey. 

This includes an admin panel, service provider panel & app (if you want to start as a multi vendor on demand eCommerce platform), a serviceman app for users who’ll directly serve customers, and a user app & website for customers for booking services. 

2. Zone-wise Business

You might want to start small, but as your business grows, you will need this feature. I mean, who’ll want to stay in a single zone/location forever when you’re thriving on your on demand business? 

Having multi-zone enabled helps you reach more customers in different locations and extend your service line country-wide. It’s a good catch if you’re planning long-term to become an on demand business giant in your locality. PLUS: You can also set up zone-wise services. 

3. Booking Management

As the owner or admin of your on demand business, you must manage all the service bookings and booking-related activities. 

This may include- verifying booking requests, seeing customized booking requests, editing services, changing payment status, printing invoices, viewing booking status, and the list goes on. 

4. Self Registration

This feature is important for user convenience. Look, it’s not always possible to manually register all service providers, servicemen, and customers all by yourself, right? 

What if the users register themselves while you take care of other important tasks? The self-registration feature also allows you (the admin or business owner) to get more users by automating the process.   

5. Service Categories

Every customer is unique. So is every service provider. Just like you can’t expect a plumber to paint walls, it’s not possible to estimate all customers might have a single problem at their home. The more variety of services you offer, the better. 

Popular service categories can be shifting, plumbing, painting, renovation, gadget repair, etc. After setting up the service categories, you can offer service variations. 

6. Service Provider Management

If you’re looking for a multi vendor on demand service platform to get your business started, your platform must have a service provider management system. The service providers are your vendors/sellers who are selling their services to customers using your on demand platform. 

As the owner/admin, you should be able to add new providers, review new provider onboarding requests, manage provider payments & withdrawals, etc. 

7. Campaigns and Promotions

What sort of service are you offering if you don’t offer discounts & coupons to your customers? 

Running promotional campaigns is an undeniable part of modern marketing. Your on demand service business should have this feature as well. 

8. Wallets and Loyalty Points

Having a virtual wallet & loyalty program encourages customers to use your platform more and more. The wallet feature in your on demand service platform will enable customers to add funds to their wallet from third-party payment gateways, pay for service via wallet, receive loyalty points and referral earnings to their wallets, etc. 

9. Request Customization 

Maybe you have all the services in the world, yet your customer doesn’t want what you’re offering. They might want to tweak your services a little bit or maybe want two or more services at once. What happens then? 

If you have a booking request customization feature on your platform, your customers will love your business. No matter what, they’ll keep returning for the unique customization and personalization facility you’re offering. 

10. Reports and Analysis

The on demand home service business eCommerce platform you’re choosing must have various reporting and analytics systems for you to get an overview of how your business is performing. So you can make future decisions based on real data. 

Some reports include transaction reports, business reports, booking reports, provider reports, etc. 

11. Bidding System

The bidding system feature, where multiple providers can place their pricing offers upon a single customization request from a customer, is pretty interesting. 

For example- A customer requested a backyard renovation with some custom instructions. Provider A is offering $100 for the task to be done, while Providers B, C, and D are offering $110, $90, and $95, respectively. Now, it’s the customers’ turn to choose the right provider with the right pricing they can afford. This feature enables customers to get the best service at the best prices. So, the bidding system can be a plus to your on demand platform. 

12. Employee Management

It’s impossible for a single person to handle all of these. So you’re gonna need employees to do a certain amount of tasks. So, the admin panel must have an employee management system. 

With this feature, you can set up employee roles and manage & monitor employees at your free will. 

13. Help and Support

The main goal of a business is to help customers with a problem. With your on demand service business, you’re offering the same. So why not get a little closer to your customers by offering them live chat and call support as well?

14. Refer and Earn

To promote your on demand business through your customers, you can offer a refer & earn program. This feature is so powerful that your business growth will eventually expand without you manually doing complex promotional activities. 

So make sure the on demand solution you choose consists of this incredible feature. 

15. Track Booking

Just like you (the admin), your customers should be able to track their service booking status from the user website or mobile app. So that they can understand where the serviceman is coming from or how much time it may take to complete the service, etc. 

16. Smart Search and Filtration 

To ensure your customers find the right service quickly, you must ensure that the search & filtration option is powerful enough in your system. 

The feature should provide smart recommendations so customers can easily find what they are looking for. 

17. Guest Checkout

Guest checkout is very popular among conventional eCommerce platforms, where customers can purchase a product or service without signing up and sharing their personal information. 

If you can implement the guest checkout feature into your on demand service business, this will be a plus for you and your customers.

18. Multi-Language

The home service platform you’re building must come up with a multi-language feature. Users can change the language according to their preferences and enjoy a native feel while using your solution. 

19. Dashboard with Statistics

Dashboard with statistics is a very basic yet extremely important feature of any On Demand eCommerce business now. Regardless of user variations, be it admin, vendor/seller/provider, deliveryman/serviceman, or customer, everybody must have their own dashboard with their platform usage history. 

20. Payment and Withdrawal

Your on demand platform must allow 3rd party payment gateway integration facility so that users can easily pay and withdraw their money when necessary.

Other Technical Features Your On Demand Business Must Have-

  • SEO & Analytics
  • Payment & SMS Gateways Integration
  • Apps on Android & iOS
  • Cross-Platform Compatibility
  • Customization Availability
  • Firebase Push Notifications  
  • Google Map API
  • Recaptcha 
  • OTP & Login

Earning Model of On Demand Home Service business

Here, I’ve prepared an illustration for you to understand the basic business flow of every on demand business (multi vendor). But, of course, this model varies from business to business. 

However, this illustration is sufficient for understanding the structure of how the business really works. You can see how every user (customer, provider, serviceman) is interlinked and how the admin makes a profit online.

Figure: On demand service business model

On Demand Home Service Business Model 

Apart from all the business models we know of, the on demand home service business model fits in the following: 

B2C Model

If you serve directly to the customers as an on demand service provider (in cases of single vendor eCommerce business) is when it’s a B2C model. 

B2B2C Model

It’s the most popular model of all time. It’s when you’re a business that’s helping other businesses (service providers) to serve their customers with home-based services via your on demand platform. It’s called the B2B2C model.

How to Launch Your Own On Demand Service Business?

Launching your on demand eCommerce business is as conventional as any other eCommerce business. However, as I said, it’s my duty to guide you through every step of the launching process. 

Initially, we’re going to divide the launch of your on demand home service eCommerce into three phases. And learn phase by phase to do’s in bullets.

Launching Process of On Demand eCommerce Business: 

Phase 1: Pre-Launch 

1. Define Niche 

Define the specific niche or home service category you want to focus on (e.g., cleaning, repairs, gardening). 

2. Market Research

Conduct thorough market research to understand customer needs, and preferences, and analyse what others are currently doing in the market.

3. Develop a Business Plan

Determine your business model and revenue streams (e.g., transaction fees, subscription plans, advertising). Then come up with a solid business plan. 

4. Choose The Right Technology Stack

Choose and develop the necessary technology stack for your platform, including website or app development, payment gateways, and geolocation services. 

5. Prepare Your Solution 

After choosing your suitable tech stack, you have to prepare your solution with the right combination of codes and APIs by hiring talented developers and analysts. Or, you can get a ready-made solution and make this journey shorter.

6. On-Board Service Providers 

After preparing your solution, establish a process for verifying and onboarding service providers. That includes background checks, certifications, and skills assessments.

Phase 2: Launch

1. Testing

Integrate essential features such as booking systems, payment gateways, and geolocation services. Then, test your solution from admin to customer and see if there are any bugs or improvements needed. 

2. Security

Ensure the platform complies with local regulations, privacy policies, and terms of service. Also, keep your solution protected so there’s no data leak or hacking.

3. Marketing

Run pre-launch marketing campaigns through social media, email campaigns, and other channels. Offer launching discounts & incentives

4. Full Launch

Officially launch the platform to the wider public after fixing any issues identified during the previous phases.

Phase 3: Post-Launch

1. Maintenance

Maintain your server’s load time, optimize site links & contents regularly, and initiate any technological support from an in-house or third-party dev team to keep your business operations smooth. 

2. Retention

Implement a responsive customer support system to address user concerns and conduct ongoing customer retention campaigns.

3. Constant Improvement

Collect user feedback and make necessary updates to improve the platform based on real user experiences.

Launching an on demand home service eCommerce business requires careful planning, development, and ongoing optimization. Regularly seek user feedback, adapt to market dynamics, and continuously enhance your platform to stay competitive in the ever-evolving on demand economy.

How Much Does it Cost to Develop an On Demand App?

The cost to develop a basic on demand app can start from $20,000 to $50,000. However, for more complex applications with advanced features, the cost can go well beyond $100,000 and may even reach several hundred thousand dollars.

It’s important to note that these estimates are general figures. Actual costs can vary based on the specific requirements of your on demand app. Consulting with experienced app developers and obtaining detailed project quotes will provide a more accurate estimate tailored to your project’s needs.

Where Can You Find Budget-Friendly On Demand Home Service App? 

There’s always an alternative for everything. So, if you don’t want to spend a fortune on developing your own on demand home service app from scratch, I know a place where you can find the right solution at 1/10000 cost! 

Demandium is a complete on demand service business solution that comes with complete source code. You can find Demandium on CodeCanyon– An Envato marketplace for coders and software developers. 

Demandium Solution Comes With The Following- 

✅ Admin Panel

✅ Provider Panel

✅Provider App 

✅ User App

✅ Flutter Web App

✅ Business Website

✅ Serviceman App 

If you’re a developer, then configuring Demandium will be a breeze for you. Because it’s written in PHP language and developed using Laravel & Flutter framework. And if you’re an entrepreneur, you don’t have to have any technical knowledge. Demandium is fully documented and their support team is always here to help you get started. 

How to Make Your On Demand Business Successful? 

Invest in strategic marketing and collaborations. Consider loyalty programs to foster customer retention. Prioritise security and legal compliance to build trust with users. Stay agile, adapt to feedback, and embrace innovation to stay tuned to the trend. 

Maintain operational efficiency, leverage analytics for informed decision-making, and engage with your community to build brand loyalty. By combining these strategies, your on demand business can thrive in the long run.

Bottom Line

Now you know what is an on demand home service business, how it works, and how to get started with it. I’m confident that you’ll find your way to success in no time! 

Just always remember, you don’t have to be good to start, you just have to start to be good! So stay curious & keep exploring. 

Until next time.

FAQs

What is an on demand service company?

An on demand service company, also known as an on demand business, is a type of company that provides immediate access to goods, services, or resources in response to customer demand.

What are some examples of on demand companies?

TaskRabbit, Uber Eats, Airbnb, Upwork, Netflix, Spotify, Udemy- are some popular examples of on demand companies.

What is on demand ecommerce?

On demand eCommerce refers to a business model in which products or services are made available to customers instantly or as needed through digital platforms, such as online marketplaces, mobile apps, or websites.

What is on demand service marketplace?

An on demand service marketplace is a digital platform that connects service providers with users or customers seeking specific services.