Ikea launches secondhand marketplace to compete with eBay, Gumtree
People queue at Ikea as it re-opens, following the outbreak of the coronavirus disease (COVID-19), in Gateshead, Britain, June 1, 2020. (Reuters Photo)
Swedish powerhouse Ikea is revolutionizing the secondhand furniture market with the launch of Ikea Preowned, a dedicated online platform that allows customers to buy and sell used Ikea products directly.
Initially tested in Madrid and Oslo, the platform is set to go global by December, positioning Ikea as a direct competitor to established resale giants like eBay, Craigslist, and Gumtree.
Why is Ikea entering secondhand market?
- Sustainability: Ikea Preowned is a significant step towards Ikea’s goal of becoming a circular and climate-positive company by 2030. The platform supports sustainability by encouraging the reuse of furniture, thereby reducing waste and minimizing environmental impact.
- Digital expansion: This initiative marks a critical phase in Ikea’s ongoing digital transformation. Moving beyond its traditional retail model, Ikea is now embracing the growing online market, providing customers with more flexible and convenient shopping options.
- Market dominance: With a strong presence on platforms like eBay and Gumtree, where thousands of Ikea items are already listed, Ikea is leveraging its brand to dominate the secondhand market. The Preowned platform is designed to make the buying and selling process more efficient and controlled.
How Ikea Preowned works?
- Listing and selling: Customers can list their used Ikea furniture on the platform, upload their photos, and set a price. Ikea’s AI-enhanced database supplements these listings with official images, product measurements, and the original retail price, making the process seamless and user-friendly.
- Global rollout: Following successful trials in Madrid and Oslo, Ikea plans to expand the platform globally by the end of the year. This move is expected to tap into the growing demand for secondhand furniture, which has seen a steady rise in popularity.
- Payment options: Sellers on Ikea Preowned have the choice to receive payment in cash or opt for an Ikea voucher with a 15% bonus, adding an extra incentive to use the platform.
Zoom In: The platform offers a wide variety of products, ranging from large items like sofas and wardrobes to smaller items such as toilet roll holders. Listings are currently free, although Ikea may introduce a small fee in the future. Early feedback from users has been positive, with many appreciating the convenience and added value of the Ikea voucher option.
