Ikea expands breadth through third-party sales

6/8/2017

Ikea is getting in on the online marketplace game.



The home furnishings giant is embarking on a test that will focus on selling its products on websites other than its own. This move will get merchandise in front of more online customers, according to Reuters.



The chain was encouraged to make the move based on the disruption that marketplaces, such as those operated by Amazon, which is making its own push in the furniture category; Alibaba and Etsy, are causing in the retail industry. Ikea will begin testing the program in 2018.



In an interview with Reuters, inter Ikea group chief executive Torbjorn Loof said, “On digital platforms, we only sell our products through our own website, and there we also see that the competitive landscape is changing. I leave unsaid on which (platforms), but we will test and pilot to see 'what does this mean, what does digital shopping look like in future and what do digital shopping centers mean?.’”



This test marks the first time Ikea has sold its goods through another company. The new program also coincides with Ikea’s other new concepts designed to connect with more shoppers, including new smaller store format tests and merging digital operations into stores to better support its omnichannel shoppers, the report added.



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