Six Online Marketplaces for Construction Materials

The construction industry is a booming economy with immense potential.

Within the construction trade, the building materials sector is set to become a $1.5 trillion global industry by 2027.

And yet, it's an industry that has been slow to digitize.

In fact, most lumberyards and building supply stores are still using paper catalogs and manual order processes.

In recent years, there has been a shift towards digitalization and online transactions in the construction industry.

An infographic by Raconteur cited that 70% of construction companies believe that those who fail to embrace digitization will eventually go out of business.

Several online marketplaces cater to the needs of the construction industry. 

Let's review six online marketplaces for construction materials!


Amast Becomes a Go-To Contractor Marketplaces

Amast is a business-to-business online marketplace where building materials vendors or suppliers can connect with contractors and management companies.

Founded in 2019 by longtime real estate developer Boaz Gilad, the company prides itself on being FROM the industry, FOR the industry.

Amast works with numerous suppliers in construction fields, including plumbing, carpeting, eco-materials, outdoor products, tools, and chemicals. 

On the Amast platform, contractors can compare, click, and buy from credible, reliable vendors in their local area.

Amast also offers buyers the option to submit a shopping list of materials.

The company will get back to them with quotations from different local and national vendors - handy! 

Companies can sign up on the platform to become vendors or suppliers with Amast.

Amast will then contact the company about setting up its product catalog.

Amast will set up the vendors' accounts and products on the platforms using documentation that the suppliers will send.

In additional benefit, Amast will also handle marketing on a vendor's behalf.

This includes sending emails and product videos and creating promotions for their suppliers.

Contractors can pay for their orders with a credit card or AMAST Pay.

AMAST Pay is a payment system used by the company that transfers payments to suppliers within hours.


Yesler Aims to Become an "Expedia" for Lumber and Building Materials

Founded by Matt Meyers in 2019, Yesler is an online marketplace for LBM or the "lumber and building materials" industry.

The company's name was inspired by Henry Yesler, who built Seattle's first sawmill in the 1850s.

As Henry Yesler's legacy laid the foundation of the next stage of Seattle, so will Yesler as an online marketplace for the LBM industry.

The company aims to optimize the flow of information within the lumber and building material supply chain. 

Dubbed the "Expedia" for the lumber industry, vendors and buyers are able to contact, negotiate, and transact using the Yesler platform.

Yesler makes money by taking a cut per transaction conducted within the platform.

The vendor knows the fee before the transaction takes place.

The buyer, in return, knows that the seller and not Yesler set the price they see on the quotation.

Interested lumber and building material companies can request a demo from the website to become a seller on Yesler.


MaterialsXchange Focusses on Price Matching

Founded by Mike Wisnefski and Ashley Boeckholt in 2019 in Chicago,  MaterialsXchange is a business-to-business online marketplace for buying and selling wood products.

Products on "MX" are uploaded on a daily basis, and buyers can bid and negotiate on available products in real-time.

MaterialsXchange is somewhat unique because the transaction happens automatically when a seller's and buyer's prices match.

MaterialsXchange will then transfer the funds and arrange the delivery of the purchased items.

Interested suppliers can register for an account on the MX website.

A representative from the company will get in touch with them for their login credentials, and from there, they can start the process to be a seller on their website.


Offloadit Focusses On Getting Value Out of Excess Construction Materials

Founded in 2020 by Steve Silva and Jim Firth, Offloadit is a platform for contractors looking to offload their excess materials and used equipment.

Offloadit uses a subscription-based revenue model that starts at $9.99.

The construction industry generates around 600 million tons of waste debris annually in the United States.

Almost 30% of all building materials in construction sites end up in landfills, where they often take up valuable space and contribute to environmental waste.

Offloadit aims to reduce this.

The company has launched a free app to make the buying and selling of excess construction materials easier and more efficient for contractors.

Buyers can find various categories of building materials and used equipment on the platform, including aggregate equipment, concrete and asphalt, construction tools, masonry, mechanical, plumbing, HVAC, traffic control tools, and many more.


Enviromate Wins Awards for Sustainability and Eco Entrepreneurship

Launched in 2015 by disruptive innovators and eco-entrepreneurs Reiss Salustro-Pilson and Nigel Van Wassenhoven, Enviromate is a UK-based online marketplace, similar to Offloadit, that connects people who want to search, buy and sell leftover building materials.

Environmate works with tradesmen, DIYers, wholesalers, and regular folks who want to renovate or build their homes over the years.

Enviromate's mission is to revolutionize the construction and DIY sector by reusing surplus and excess building materials.

Enviromate has won several awards, including the P.E.A. Sustainability Awards, Pioneer of The Year, The Great British Entrepreneur Awards, and the Eco Entrepreneur of the Year Natwest Boost Award.

The platform doesn't charge commission or selling fees; however, Enviromate has four packages to choose from for its members: Free, Premium, Premium +, and Wholesalers.

A free package allows users to sell and buy from the platform.

A Premium account enables the users to sell with unlimited ads and images on their listing, as well as three free ad bumps for £2.99 a month.

Premium +, their most popular package for £19.99, offers six ad bumps per month, exclusive access to wholesale ads, and exclusive discount offers.

The Wholesalers package for £29.99 gives access to the sale stocks and a seller hub.

Wholesale package users are also given nine ad bumps per month and can list their items on the Premium+ community for increased sales and reach.

Since its inception, Eviromate has helped prevent 4,000 tons of building materials, valued at around £600,000, from going into the waste stream.


Unbuilt Builds a Business Model Around Selling Consignment Construction Materials

Unbuilt is an LA-based online resale marketplace specializing in unused construction materials and merchandise.

The platform was founded in 2019 by Matt Kennedy and Sara Noyes, who wanted to create a resale market for construction items.

Again, like the other resale platforms, the company sources its inventory from builders, designers, and property owners who often have items left over after completing their jobs.

Unlike some of the other construction platforms, though, Unbuilt operates on a consignment business model.

Those who want to consign with the company can schedule a pick time via phone or email.

The company will then pick up the items, create an inventory list, take pictures of items, and list them on the website and partner platforms.

Unbuilt accepts various categories, including lighting, kitchen and bath, tile and flooring, accessories, windows, doors, cabinets, and associated hardware.

Once an item is sold, Upbuilt will ship the items to the buyer, wait for the 30-day period for product returns, and then the seller's share will be sent to their Seller Account.

Seller revenue ranges from 30% to 70%, depending on the value of the item sold.

Sellers may opt to re-claim their unsold items from Unbuilt.

Items not claimed by sellers will be donated to a charitable organization or recycling center.

The same conditions also apply to items that have not passed the company's standards.


In Summary

Online marketplaces can be an excellent way for construction companies to find building materials, equipment, and services.

Is there room for more? Yes, potentially.

Especially those who target a niche market or provide unique offerings, such as Unbuilt who chose to work on a consignment model.

Interested in building your own marketplace?

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