Ikea tests digital secondhand marketplace to rival eBay

Ikea is trialing an online secondhand marketplace in Oslo and Madrid to rival other peer-to-peer services such as eBay.

In a LinkedIn post, the company’s chief executive Jesper Brodin said that Ikea Preowned would enable people to purchase Ikea products at an “even lower price” and contribute to the furniture retailer’s sustainability efforts.

Ikea has previously experimented with buying used furniture and reselling it in its stores, but according to the Financial Times (FT), the new platform is “more ambitious” and will tap into the secondhand market where Brodin believes Ikea has a higher market share than in new products.

To use the platform, the publication said customers upload pictures and a price at which they would like to sell their product. Ikea’s database then uses AI to add promotional images and measurements.

A spokesperson for Ikea confirmed to National Technology News that selling on the platform is currently free, but Brodin told the FT that Ikea could charge a “symbolic” or “humble” fee in the future.

The seller can choose to get cash or a refund card with 15 per cent additional credit that can be spent at Ikea.

Tolga Oncu, head of retail at Ikea Retail at Ingka Group said that the trial will last until December, during which the company will gain an understanding of customer behaviours and what the platform could mean for Ikea from a business perspective.

“The global second-hand furniture market is growing rapidly, with a projected annual growth rate of 6.4 per cent in 2024,” he added. “Already today, 10 per cent of the second-hand home furnishing market is made up by Ikea products.

“With the platform that we are testing in Madrid and Oslo, we have the possibilities to simplify and enhance the experience for both the seller and the buyer.”