After conquering the world of furniture (and developing a near-perfect meatball), Ikea is taking on the online resale market.
What happened: The world’s biggest furniture retailer is launching Ikea Preowned, a peer-to-peer marketplace for buying and reselling used Ikea products. The online platform is part of Ikea’s effort to cut a big slice out of the growing US$34 billion second-hand furniture market.
- The site is being piloted in Oslo and Madrid, and will roll out globally by December. Listings are free, for now, but the company says it could one day charge a “humble” fee.
- Second-hand markets are gaining popularity as the cost of living soars. One survey found that furniture made up almost a third of used items bought by Canadians in 2021.
How it works: Just like eBay, Kijiji, or Facebook Marketplace, users upload pictures of a product and name their price. Buyers can then pick up the furniture directly from sellers, who are given the choice between cash or an Ikea credit for the amount plus a 15% bonus.
Bottom line: In an interview with the Financial Times, the company’s CEO estimated the company has a higher share of the second-hand market than new furniture sales. And by offering Ikea credits, it could bring some of that resale cash right back into its stores.—LA