IKEA might bring an online marketplace for second-hand items to Canada this year

After conquering the world of furniture (and developing a near-perfect meatball), IKEA is taking on the online resale market.

What happened: The world’s biggest furniture retailer is launching Ikea Preowned, a peer-to-peer marketplace for buying and reselling used IKEA products. The online platform is part of IKEA’s effort to cut a big slice out of the growing US$34 billion second-hand furniture market.

  • The site is being piloted in Oslo and Madrid and will roll out globally by December. Listings are free for now, but the company says it could one day charge a “humble” fee.
  • Second-hand markets are gaining popularity as the cost of living soars. One survey found that furniture made up almost a third of used items bought by Canadians in 2021.

How it works: Just like eBay, Kijiji, or Facebook Marketplace, users upload pictures of a product and name their price. Buyers can then pick up the furniture directly from sellers, who are given a choice between cash or an IKEA credit for the amount plus a 15% bonus.

Bottom line: In an interview with the Financial Timesthe company’s CEO estimated that it has a higher share of the second-hand market than new furniture sales. Offering IKEA credits could bring some of that resale cash right back into its stores.

Get smarter about what matters. Sign up for The Peak, a free five-minute daily email on Canadian business, tech, and finance that you’ll actually enjoy reading.

Source