Ikea is launching a second-hand marketplace
The furniture retailer Ikea plans to launch a marketplace where customers can sell their pre-owned Ikea furniture to other consumers. By doing so, the company aims to expand its online revenue. The company has already launched a pilot in Spain and Norway.
The Swedish retailer is well-known for its furniture. In several European countries, Ikea leads the online furniture market. To further strengthen its online presence, the company has now announced plans to launch a second-hand online marketplace called Ikea Preowned.
Customer to Customer
Ikea Preowned will be a C2C marketplace, meaning that customers sell directly to other customers. Customers can upload a product with their own price and photos. With the help of AI, the platform adds advertising images, correct dimensions of the product, as well as assembly guides and care instructions.
“Buyers will need to pick up products at the seller’s address”
The platform will facilitate the sale of these products but will not handle the logistics. Buyers will need to pick up the product at the seller’s address. Sellers will receive either payment or an Ikea voucher with a 15 percent discount. For now, listing products on the marketplace is free, but Ikea may charge a fee in the future.
“Testing until December”
A pilot project for Ikea Preowned started this summer in Oslo and Madrid. “The test will continue until December, and during this time, we will be continuously interacting with users to understand customers’ behaviors and interests toward a digital second-hand marketplace, as well as what this would mean for us from a business perspective,” says Jesper Brodin, CEO of Ingka Group, the largest Ikea retailer. “After December, we will evaluate and decide on the next steps.”
“Already 10% of the second-hand home furnishings market is made up of Ikea products”
“The global second-hand furniture market is growing rapidly, with a projected annual growth rate of 6.4 percent in 2024. Already today, Ikea products make up 10 percent of the second-hand home furnishings market. With this platform, we see opportunities to simplify and enhance the experience for both sellers and buyers,” Brodin adds.