Ingka Group, which operates a majority of Ikea shops on this planet, is piloting a brand new resale market initiative known as Ikea Preowned. The digital market is designed for patrons to purchase and promote used Ikea furnishings straight with each other.
The net peer-to-peer platform is at present being examined in Madrid and Oslo till December, with the potential for a world rollout if the trial proves profitable.
“We are going to begin in Oslo and Madrid, but the ambition is increased,” Jesper Brodin, CEO of Ingka Group, mentioned in a LinkedIn post. “With the check, we are going to get deeper insights in how we will meet folks’s desires and desires in life at house, by making the Ikea vary extra accessible at an excellent cheaper price and as part of our sustainability efforts.”
Ikea ranks No. 7 within the Europe Database, Digital Commerce 360’s rating of the most important on-line retailers within the area. Digital Commerce 360 initiatives that Ikea net gross sales will attain $10.76 billion in 2024.
Ikea net gross sales by 12 months
Ikea Preowned consumer expertise and future plans
Through the pilot section, Ingka will have interaction with customers “to know clients’ behaviors and pursuits in direction of a digital secondhand market, in addition to what it will imply for us from a enterprise perspective,” Brodin mentioned in a press release saying the brand new platform.
At the moment, Ikea Preowned is free to make use of, although the corporate could introduce what Brodin described to the Monetary Occasions as “a symbolic payment, a humble payment” sooner or later.
To date, many of the merchandise listed on the platform fall inside classes equivalent to front room, kids’s furnishings, and storage.
Patrons can reserve preowned Ikea objects, prepare a meetup with the vendor, and examine the merchandise earlier than deciding to finalize the acquisition. If the merchandise doesn’t meet their expectations, they’ll cancel the acquisition and obtain a refund.
In the meantime, sellers can checklist Ikea furnishings with their very own images and costs, whereas Ikea’s algorithms add promotional photographs, measurements, and product particulars. Every itemizing additionally contains meeting guides and care directions. After a sale, sellers can select between a financial institution switch or an Ikea present card, which comes with an extra 15% off of future purchases.
A devoted on-line platform for Ikea merchandise
Ikea furnishings is already a staple on on-line resale platforms like eBay, Craigslist, Gumtree, and Fb Market. Ikea merchandise now account for 10% of the secondhand house furnishings market, in accordance with Brodin.
Along with this, Ikea has a buy-back program in some shops the place it purchases used furnishings from clients and resells it as pre-owned.
Nonetheless, Ikea Preowned units itself aside by providing a devoted on-line platform solely for purchasing and promoting Ikea objects, with the purpose of capturing a bigger share of the secondhand market and shifting focus from bodily shops to the rising on-line gross sales sector.
Brodin additionally highlighted that the worldwide secondhand furnishings market is projected to develop by 6.4% yearly beginning in 2024, reflecting a broader pattern of shoppers turning to pre-owned choices for high-value objects.
Ikea works to assist sustainability by means of resale
Ingka Group famous that Ikea Preowned is a part of its bigger efforts to assist clients prolong the lifetime of merchandise. The corporate provides a variety of providers, together with in-store buybacks, substitute components, and recycling applications like RetourMatras, which repurposes previous mattresses.
The initiatives align with Ikea’s sustainability targets and contribute to the round economic system by retaining merchandise out of landfills.
The Global Circularity Gap Report 2024, an effort between Deloitte and the Circle Economic system Basis, discovered that the round economic system has reached megatrend standing. The amount of discussions, debates, and articles on the subject has practically tripled over the previous 5 years.
Nonetheless, international circularity nonetheless stays in decline, with the share of secondary supplies on this planet’s economic system falling to 7.2% in 2023 from 9.1% in 2018 — a 21% lower over 5 years.
The report says systemic change requires coordinated efforts from governments, monetary actors, and residents to introduce insurance policies that promote round practices and penalize dangerous ones. It additionally requires adjusting fiscal insurance policies to replicate true costs and guarantee funding for round options.
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