The Swedish furniture retailer IKEA has announced it will be launching a secondhand marketplace as part of its aim to become a circular business by 2030. Currently, this new sustainability strategy is being trialled in Oslo and Madrid until the end of 2024, with the hope for a global rollout if the platform proves successful.
About the resale platform and how it will work
The peer-to-peer resale platform is called IKEA Preowned and will allow people to buy and sell preloved IKEA products. IKEA Preowned is part of a broader range of efforts by IKEA to reduce resource use and become a circular business. By keeping their furniture out of landfills and finding them new homes, the brand is hopeful it can encourage waste reduction and prolong the life of its products.
The marketplace will allow sellers to list their preloved furniture and homeware items by uploading photos and setting a price. IKEA will then leverage AI to pull in the correct measurements for the piece from its own database and any supporting imagery from its back catalogue. Buyers can pick up their purchase directly from the seller, who has the choice of being paid directly or receiving an IKEA voucher with 15 percent additional credit.
Rivalling other resale platforms
The company has said the aim is to rival other resale platforms like Gumtree, eBay, and Facebook Marketplace, where its products already make up a significant portion of the inventory. IKEA has shared that currently, 10 percent of the second-hand home furnishing market is made up of its products. With this platform, they will have the ability to simplify and improve the experience for both sellers and buyers alike.
The arrival of the secondhand marketplace comes under a broader objective of the brand to ensure that all IKEA products can be reused, refurbished, or “as a last resort” recycled by 2030. To ensure this, the marketplace will also feature a ‘care and repair’ section that enables people to order spare parts, wood stains, and removable covers to refresh the furniture pieces they plan to sell or purchase.
At present, the platform allows users to purchase and sell products for free, however, the company plans to charge ‘a humble fee’ in the near future. IKEA is currently assessing questions like this and other business implications as part of the ongoing trial, in addition to checking in with users to comprehend how the platform is working for them. Once the trial ends in December, they will begin to evaluate and determine the next steps.
IKEA Preowned expands on the company’s existing buy-back programme, whereby the company resells customers’ preloved items in stores. It addresses some of the previous drawbacks to make the selling and buying experience more seamless. Another important part of this initiative is that it builds on IKEA’s mission to become “the go-to place for home furnishing”.
Summary
By launching the IKEA Preowned marketplace, IKEA is demonstrating a forward-thinking approach to sustainability. The company is not only extending the lifecycle of its furniture but also leading the charge in the transition to a more sustainable, circular economy.
Their innovative use of technology, combined with an emphasis on reuse and repair, showcases how businesses can rethink their models to prioritise resource efficiency and environmental responsibility. Other companies should be inspired by IKEA’s commitment to change, embracing circular economy principles to meet growing consumer demand for sustainable solutions and contribute to a more responsible, waste-free future.
If you’re interested in learning more about the circular economy and the challenges circular economic models present to businesses, we recently did a webinar on this. During the session, speaker Dr. Maurizio Catulli illustrated these limitations and provided insights into addressing these challenges. Watch the webinar replay here.
