IKEA, the pioneer in the flat-pack furniture industry, is taking a customer-centric approach that focuses on providing customers with what they want, when they want, and how they want it. Hot on the heels after launching their Halloween 2024 collection this summer, the Swedish furniture retailer is trying to crack something eBay, Craigslist, and Gumtree did years ago. The company is on a pursuit to challenge the already existing market forces with the launch of IKEA Preowned. In simple words, the company is testing a secondhand marketplace that will allow people to buy and sell used IKEA products.
Currently, the idea is in the testing stages and is on a trial run in two cities: Madrid and Oslo. If successful, the company envisions a global rollout after December. “We are testing a digital secondhand marketplace in Oslo and Madrid to help customers connect, buy, and sell pre-owned Ikea items between each other,” Jesper Brodin told the Financial Times. Brodin also highlighted that though these listings are free as of now, Ikea could eventually charge “a symbolic fee” in the future.
The company isn’t shying away from making blunt comments either with Tolga Öncü, retail operations manager for IKEA franchisee Ingka Group, clearly stating that it wants to rival online resale platforms like eBay and Facebook Marketplace. The IKEA Preowned marketplace will allow sellers to list their furniture and homeware by uploading photos and setting a price.
The Swedish furniture retailer would then deploy AI to configure the correct measurements for the piece from its database. Additionally, the AI tool would also provide supporting images from its back catalog to help buyers determine their choice. At the moment, sellers have the option to get paid via a bank transfer with no added fees. However, IKEA provides an option to the buyer where they can receive an IKEA voucher with 15 percent additional credit.
Also Read: Interview With Friso Wiersma – Lead Designer of IKEA’s New Record Player
The effort to launch IKEA Preowned is being hailed globally as part of its aim to become a circular business by 2030, but the idea is meeting a fair amount of backlash from critics too, with people arguing that IKEA is too late to the game with eBay and Facebook Marketplace already dominating a huge section of the market.
It will be interesting to see how IKEA plans and implements this further. Meanwhile, it’s worth noting that the firm already offers a service where it sells pre-owned items, in a few of its stores.
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