Ikea is stepping into the second-hand market with the launch of “Ikea Preowned,” a peer-to-peer marketplace where customers can buy and sell used furniture directly to each other. This move pits the Swedish giant against established platforms like eBay, Gumtree, and Craiglist.
Initially, this platform will be tested in Madrid and Oslo until the end of the year, with plans for a global rollout, according to Jesper Brodin, the Chief Executive of Ingka, the main operator of Ikea stores.
“This has been a dream in the making for a while,” said Brodin in a recent filing. “We are in a place in Ikea where we can do more advanced and cool stuff. There is an incredible confidence in the company evolving on digital.”
The Preowned marketplace marks a significant shift for Ikea, which has traditionally operated as an out-of-town retailer requiring customers to assemble their own purchases. Over the past few years, Ikea has been transforming into a modern business with online sales, city-center stores, and services like furniture assembly.
While Ikea already has a smaller initiative that allows customers to sell used furniture back to the company for resale in stores, the new platform is far more ambitious. It aims to tap into the thriving second-hand market, where, according to Brodin, Ikea holds a higher market share than in new furniture sales.
On the platform, sellers can list their furniture by uploading photos and setting a price. Ikea’s artificial intelligence-enabled database will automatically provide promotional images and measurements. Buyers will collect the items directly from the sellers, who can choose to receive payment of an Ikea voucher with a 15 percent bonus.
“Very often there is a monopoly or oligopoly on platforms that operate,” said Brodin, referring to competitors like eBay and digital classified ad services such as Gumtree in the UK. In Oslo alone, there are currently 8,700 Ikea items listed on Finn, a popular local website.
The service is free for users to list items, although Ikea may eventually introduce a small fee. “We’re going to verify the full scope, including the economics,” said Broden. “If a lot of people use the offer to get a discount with Ikea – it’s a good way to reconnect with customers. I am very curious. I think it makes business sense,” he added.
This initiative is Ikea’s first foray into second-hand marketplaces, aligning with its broader goal to become “circular and climate positive” by 2030. It also builds on Ikea’s experience of selling new furniture on third-party platforms, like Alibaba’s Tmall in China.
The move towards online shopping was accelerated during the Covid-19 pandemic, a period that forced Ikea to adapt rapidly, where Brodin stated it was a matter of survival for them. “We were 100 percent closed. The digital transformation saved us,” he added in a media filing.
Now, Ikea aims to create a comprehensive platform that will be the “go-to-place for home furnishing.” The marketplace will be a key component, with future expansions potentially including services, finance, and home planning.