Second Home

A test by Ikea of a new online marketplace could represent an attempt by the company to achieve greater control over its own secondhand business, according to a Fast Company report.

First launched in Spain and Norway, Ikea Preowned is an online marketplace that lets people buy and sell lightly used Ikea products through an interface that feels like the home furnishing brand’s regular site. If launched in the U.S., the site will provide an alternative to Ikea used furniture transactions that have up until now occurred through third-party apps such as Facebook Marketplace, Craigslist, or eBay.

Visitors to the new site can first enter their postal codes to see distances of buyers or sellers from them. The site then asks the visitors if they want to buy or sell. From a design perspective, the site features the same typeface and overall vibe as Ikea’s regular online catalog.

The site also features images of the used products that are up for sale so you can check out their condition. After adding a product to their carts and purchasing it, buyers are connected to the item’s seller to arrange pickup.

A new emphasis on preowned furniture might seem to deepen Ikea’s attempts to serve its traditional target audience. Which would largely appear to include middle-income young adults, families, and professionals who are more DIY-inclined. Or interested in modern, trendy furniture designs at a more affordable price.

In particular, such initiatives could provide more budget-friendly furniture options to a group of consumers who are already price-sensitive. And help them furnish their homes in an even more eco-friendly fashion by letting them reduce their overall consumption of new resources.

But they could also help serve this audience in more subtle ways. Preowned furniture offerings, for instance, might allow consumers access to unique styles that aren’t currently available among new pieces, as well as pieces with unique character.

In addition, the Ikea Preowned marketplace itself could help foster an additional sense of community among the brand’s existing customers. Bound not only by the sharing of furniture-related tips, advice, and inspiration, but also by a circular economy orientation that helps minimize environmental impact.

According to Jesper Brodin, CEO of Ingka Group, which owns Ikea, the global second-hand furniture market is growing rapidly, with a projected annual growth rate of 6.4% in 2024. Ikea products already account for 10% of that market.

Fast Company noted that although the Ikea Preowned pilot program is free of commission charges for furniture sellers right now, the company is considering a “humble fee” for the service in the future.

Customers can currently pay for products with cash on the site, but sellers can choose to get paid with either cash or Ikea credit. If sellers choose the Ikea credit, the company adds a 15% bonus to their total sale price.

The platform also ties into Ikea’s existing buyback program, where customers can sell used furniture back to the company for in-store resale. Overall, these initiatives are part of the company’s larger goal of ensuring by 2030 that all its products are reusable, recyclable, or able to be refurbished.

In 2019, Ikea also announced it was expanding its tests of a furniture rental program to 30 countries, including the U.S., China, and India.

At the time, Ikea said it was facing a squeeze on resources as the global population grew and more people wanted to buy its products. And that the traditional way of manufacturing, including extracting resources, making products, and selling them to consumers who ultimately put them in landfills, no longer made sense for them.

As of several years ago, the company was already testing subscription-like models for furniture in a few locations, including a program for small businesses in Switzerland and for students in the Netherlands. It was also working on a voucher program in Australia for people who returned furniture for resale, and another similar program in Japan.

Over time, Ikea has also rethought aspects of its furniture design. Their Vimle sofa, for instance, is sold in parts so if you need a bigger piece you can buy an extra seat rather than replacing the whole thing.

Other Ikea products are built from recycled materials. Including a rug made from leftover fabric used in bed linen production, a spray bottle made from leftover plastic film used in packaging, and kitchen cabinets made from recycled wood and plastic bottles.

In terms of the new Ikea Preowned platform, Ingka Group is closely monitoring its performance and customer feedback as the trials in Madrid and Oslo continue, according to Fast Company. The retailer will reportedly do a full evaluation in December 2024 which will determine whether it rolls the platform out globally.