IKEA Launches Buy-Back Program for Used Furniture
Translated & summarized from Ice by baba
IKEA is launching a new online service allowing customers to sell used furniture back to the company for store credit, starting with a pilot in Spain and Portugal. The initiative aims to capitalize on the growing second-hand market, which is valued at billions and expanding rapidly. IKEA also offers a digital marketplace for peer-to-peer sales with a bonus for store credit. The service is currently limited to Europe, with no immediate plans for Israel.
The story in 7 lines · by baba
- IKEA will launch an online service to buy back used furniture from customers for store credit.
- The pilot program will begin in Spain and Portugal before expanding to the UK and other European nations.
- A digital marketplace allows IKEA loyalty members to trade second-hand items directly with each other.
- Customers opting for store credit on the marketplace receive an additional 15% bonus.
- The UK's second-hand home goods market is valued at £4.5 billion and growing.
- IKEA products constitute about 9% of items sold on second-hand platforms.
- The service is currently unavailable in Israel.
Swedish furniture giant IKEA is significantly expanding its presence in the second-hand market with a new digital initiative. The company will allow customers to sell their used IKEA furniture back to the company directly from their homes in exchange for store credit, through a dedicated online service. This pilot program is set to launch in Spain and Portugal before the end of the year, with plans to expand to the UK and other European countries subsequently.
Alongside this home collection service, IKEA is also rolling out a digital "Marketplace" platform. This platform enables loyalty program members to trade second-hand items directly with each other. The system assists sellers with structured descriptions and suggested bargaining prices. It offers an additional incentive: a 15% bonus on the sale value for those who opt to receive payment as store credit.
These moves come in response to unprecedented growth in the consumption of used products. IKEA reports that the second-hand home goods market in the UK alone is valued at approximately £4.5 billion, growing at about 6.5% annually. In the past year, around 63% of British consumers purchased used items.
Greg Lucas, IKEA's Sustainability Manager for the UK and Ireland, stated that the second-hand market has become mainstream and has completely changed how people furnish their homes. The second-hand sector is projected to capture about 16% of the entire home furnishings market within the next year, with IKEA products currently making up approximately 9% of items sold on used platforms.
Customers in Israel will have to wait, as the service is currently in a trial phase in Europe and is not expected to reach local branches in the near future.