Ikea is launching second-hand marketplace

Furniture retailer Ikea plans to launch a marketplace where customers can sell their pre-owned Ikea furniture to other consumers. By doing that, it wants to expand its online revenue. The company launched a pilot in Spain and Norway.

The Swedish retailer is well-known for its furniture. Within several countries in Europe, Ikea is the leader in the online furniture market. In an effort to strengthen its online presence, the company has now announced that it plans to open 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 AI, the platform adds advertising images and correct dimensions of the product, as well as assembly guies and care instructions.

‘Buyers will need to pick up products at the seller’s address’

The platform will enable the sale of these products and not take on the logistics. Buyers will need to pick up the product at the seller’s address. Sellers will either receive payment or an Ikea voucher with a 15 percent discount. For now, listing products on the marketplace is free. In the future, Ikea could charge a fee.

‘Testing until December’

A pilot for Ikea Preowned started this summer in Oslo and Madrid. “The test will go on until December and during this time, we will be continuously interacting with users to understand customers’ behaviors and interests towards a digital second-hand marketplace, as well as what it would mean for us from a business perspective,” says Jesper Brodin, CEO at Ingka Group, the largest Ikea retailer. “After December we will evaluate and decide on the next steps.”

‘Already 10% of the second-hand home furnishing market is made up by 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, 10 percent of the second-hand home furnishing market is made up by IKEA products. With this platform we see possibilities to simplify and enhance experience for both sellers and buyers,” Brodin adds.