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ikea buy back scheme

IKEA Australia, Circular System

In 2018, IKEA Australia embraced the 100% Circular commitment as part of Global Retail Business strategies. Inspired by a Sydney store employee who noticed good IKEA furniture being discarded due to lacking buyers, a 'buy back service' was conceptualized and tested locally.

After thorough market research and benchmarking against international practices, a six-month pilot using a manual system highlighted the need for a more efficient backend. Consequently, a technological solution was developed and implemented across all ten Australian stores. Subcinctus's CE Expert Dr. Kate Ringvall, played a key role in the development and roll out of this program.

The Pilot store leveraged the unique As-Is process to introduce a buy-back service, expanding its customer base. Local feedback highlighted the need for better transport options for returning used furniture, leading to a partnership with a local car-sharing platform providing vans.

A web-based platform was then integrated into the IKEA Australia website, allowing customers to identify their furniture, receive a conditional value, and return it within a month. Upon return, items are assessed, and qualifying customers receive a gift card. Following a successful Sydney pilot, the buy-back service expanded nationwide, reducing waste and offering a convenient resale option. 

circular products

benefits provided

  • Provided an even greater opportunity to connect with even more new customers because they could now afford IKEA furniture where they couldn’t before.
  • Customers snapped up the second-hand IKEA furniture in the As-Is section so quickly that the stores would run out of items in a day.
  • There was a 300% increase in sales from each gift card compared to the price of the item sold.
  • Conscious customers would actively choose to buy second-hand from IKEA, knowing that they were buying an item that had been guaranteed in good condition by the store and without the numerous challenges that buying from strangers found through social media represents. 

national achievements

  • During the year-long trial, 1,600 furniture pieces were repurchased into the store and ended up in a new user's home
  • Then, the Furniture Buy-Back Program was rolled out live across 10 Australian stores. 
  • In the first two months of the live national program, 4,539 furniture items were returned 
  • By the end of 2019: Over 100,000 customers visited the furniture buy-back web tool and 45,000 kgs of furniture were diverted from landfill waste  Statistics By End Of 2019

circular product line | reuse & repurpose | extended product lifecycle | waste diversion

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