Ikea, the world’s largest furniture retailer, is set to challenge the dominance of eBay, Craigslist, and Gumtree in the secondhand marketplace with the launch of its peer-to-peer platform, Ikea Preowned. The new platform will allow customers to buy and sell used Ikea furniture directly to each other, with the company initially testing the service in Madrid and Oslo until the end of the year.
Jesper Brodin, chief executive of Ingka, the main operator of Ikea stores, expressed his enthusiasm for the project, stating that it has been a long-held dream for the company. He emphasised that Ikea is now in a position to explore more advanced and innovative digital solutions, thanks to the confidence in the company’s evolution.
The launch of Ikea Preowned is part of the retailer’s ongoing transformation, which has seen it move from being primarily an out-of-town retailer to one that offers online sales, city-centre stores, and additional services such as furniture assembly. The new marketplace aims to capture a significant share of the secondhand market, where Brodin believes Ikea has a higher market share than in new furniture sales.
Customers using the platform will be able to list their products, upload their own pictures, and set a selling price. Ikea’s AI-enabled database will supplement these listings with promotional images and measurements. Buyers will collect the furniture directly from the seller, who can choose to receive payment in cash or an Ikea voucher with a 15% bonus.
Brodin acknowledged the presence of monopolies or oligopolies in the current marketplace landscape, referring to platforms such as eBay and digital classified ad services like Gumtree in the UK and Finn in Norway. He noted that listings on Ikea Preowned are currently free, but the company may consider introducing a modest fee in the future.
The launch of Ikea Preowned aligns with the retailer’s goal of becoming “circular and climate positive” by 2030. The COVID-19 pandemic has also accelerated Ikea’s digital transformation, with the company adapting its online shopping rollout from a three-year plan to a mere six weeks as a matter of survival during the global lockdowns.
Looking ahead, Brodin envisions Ikea developing a platform that serves as the go-to place for home furnishing, with the marketplace being one of the most crucial components. Other aspects could include services, finance, home planning, and shopping, as the company continues to evolve and meet the changing needs of its customers.
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