In a bold move, Ikea is set to rival online platforms such as eBay (NASDAQ:EBAY), Craigslist, and Gumtree by introducing a peer-to-peer marketplace for customers to trade used furniture.
The innovative platform, named "Ikea Preowned," will be trialed in Madrid, Spain and Oslo, Norway until the year's end, with the intention of a global rollout, as stated by Jesper Brodin, CEO of Ingka, the main operator of Ikea stores, Financial Times reported on Thursday.
This marketplace is a significant step in Ikea's evolution from a traditional out-of-town retailer to a digital enterprise offering online sales, city-center stores, and services such as assembly.
The secondhand furniture market is a thriving industry, and Ikea's new platform aims to capitalize on this trend. The platform will enable customers to list their products, determine a selling price, and upload their own images. Ikea's AI-enabled database will enhance these listings with promotional images and measurements.
As per Brodin, Ikea's market share in the secondhand furniture market surpasses that in new furniture sales. This innovative platform could potentially re-establish Ikea's connection with customers, providing sellers the choice to receive money or a voucher from Ikea with a 15% bonus.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
