Close Button
Newsletter Button

Sign up for our newsletter

The latest from Inc. Southeast Asia delivered to your inbox.

By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.
INNOVATE

Ikea Just Made a Brilliant Announcement That Could Completely Change the Way It Does Business

Got some old Ikea furniture you’d like to get rid of? In the near future, you might be able to sell it–back to Ikea.

Share on
BY Justin Bariso - 28 Jun 2018

Ikea Just Made a Brilliant Announcement That Could Completely Change the Way It Does Business

PHOTO CREDIT: Getty Images

It's difficult to imagine just how many millions of tons of furniture are thrown away each year, never to be used again.

Well, Ikea wants to do something about it.

The Swedish-founded retailer, which happens to be the world's largest purveyor of furniture, has announced a new pilot program: One of its stores will now buy back your old, unwanted furniture.

For now, the service is only available at a single Ikea store, located in Sydney, Australia.l

But how does it work?

As outlined by Ikea's website:

  • Potential candidates must fill out an online submission form, which should then be sent via email along with five photos of the unwanted furniture
  • An Ikea employee then evaluates the product, issuing a response to the customer within 24 hours as to whether the furniture is eligible for the takeback service
  • If approved, the owner must deliver the furniture to Ikea within 14 days.
  • If the furniture is deemed to match the pictures submitted through email, the customer will receive an Ikea voucher up to 50% of the original value of the furniture.

Ikea asks that the furniture be delivered fully assembled. In fact, the company has even partnered with car sharing company GoGet to provide free van rentals (for up to two hours) to help ease the task of getting the old furniture into the store in one piece.

But lest you believe Ikea's motives are completely pure, there's something you should know:

This move actually makes brilliant business sense.

For one thing, customers are receiving Ikea vouchers for their used furniture. So, the value of the returned furniture basically amounts to a discount on...more Ikea merchandise. This encourages customer loyalty and repeat purchases.

Moreover, Ikea may manage to resell the used furniture for the original amount paid to buy it back, or close to it. Or, the company may be able to recoup some of that repurchase cost by recycling materials--all while reducing environmental impact.

"For IKEA this is clearly about business, we are in the business of selling furniture," stated Kate Ringvall, Sustainability Manager at IKEA Australia (as reported by Gizmodo AU). "Our core business isn't really about sustainability or talking about sustainability but the way that we approach it is...through how we produce our products, how we move those products, how we talk to our customers about the amazing products we do sell and how they can help their life."

inc-logo Join Our Newsletter!
The news all entrepreneurs need to know now.

READ MORE

This Company Has the Largest Fleet of Orbiting Satellites in Human History. Here’s What It Plans to Do Next

Read Next

The 5 Biggest Changes to Hit Your Money in 2015

Read Next