Although Amazon is known for its innovative approaches driving the modern economy, the company is not pursuing every potential opportunity available.

Business Insider reports that the market for rented goods is expanding rapidly, yet Amazon and other major retailers have not made significant moves to capitalize on this growing segment of the retail industry.

Projections indicate that global retail rental sales are set to reach $2 billion by 2025, with several traditional brick-and-mortar retailers already benefiting from this trend. Companies like Urban Outfitters are enabling customers to rent clothes, sparking competition in this emerging market. As Generation Z consumers mature, this trend is expected to gain further momentum.

Renting items is becoming increasingly popular across various sectors. While rental clothing has spearheaded this new trend, almost any product can potentially be offered for rent. Retailers like REI are expanding their rental services significantly, especially high-end brands that can attract new customers by providing a more affordable entry point. Even when customers are not looking to purchase expensive items, retailers are creating opportunities for additional revenue by offering rentals. Many younger consumers desire to wear upscale clothing without the commitment of buying it.

Despite the growing interest in the rental market, Amazon has not yet seized this opportunity. While some companies are venturing into this space, establishing a rental business without Amazon’s extensive resources can be challenging. Rentals typically operate on thin profit margins, which may not immediately attract the attention of major players. However, the potential for growth in the rental sector remains untapped, waiting for an enterprising player to capitalize on it.