IKEA Saudi Arabia, a subsidiary of AlSulaiman Group, has partnered with Saudi-based startup Melltoo and FLOW logistics to launch a peer-to-peer furniture buyback program in Saudi Arabia. IKEA customers are incentivized to sell their used furniture on the Melltoo marketplace and will receive cash against their sale and an additional IKEA voucher, valued at 20% of the sale price. Customers list their furniture through the Melltoo app after which FLOW logistics will verify and collect the furniture from the seller and deliver it to the buyer. Melltoo manages the transaction end-to-end, enabling payments, providing customer support, and a money-back guarantee for both buyer and seller.
The market for secondhand and used products has grown rapidly in recent years, driven by consumer desire for a more sustainable model of consumption coupled with supply chain disruptions as a result of the COVID pandemic. The resale market is expected to grow 400% in the next 5 years, compared to 2% for retail. 4 in 5 people surveyed say that they shop secondhand. Brands are anxious to get in on the trend, with French retail giant La Redoute, the top-ranked French site for apparel and home decor, going as far as to launch their own peer-to-peer marketplace called La Reboucle.
IKEA, the foremost furniture retailer globally, has long been involved in sustainability initiatives and has an ambitious plan to become climate positive by 2030. Ammar Nagadi, the CEO of IKEA Saudi Arabia and Bahrain:
“At IKEA, our goal is to create a better everyday life for the many people; that means, we must not only become sustainable, but our sustainability initiatives must also make our customers’ lives better. Used furniture is a huge pain point for most people when moving or upgrading. Often, people just leave perfectly usable furniture outside on the street because they don’t know what to do with it. This furniture inevitably ends up in a landfill, even if the furniture is still in good usable condition. By partnering with Melltoo and FLOW to enable peer-to-peer sales of used IKEA furniture, we simultaneously solve this pain point while helping our customers get some money back for their used furniture.”
Furniture buyback programs are not uncommon around the world. Usually, this involves the customer bringing their used furniture, fully assembled, to a store for evaluation. The store subsequently issues the customer store credit in exchange for the used furniture. However, for the IKEA-Melltoo peer-to-peer program, customers will be selling their furniture to other customers. Everything is done through a smartphone and the seller never has to meet the buyer nor have to move any furniture himself. The seller will receive cash for his furniture and an additional 20% of the sale price as an IKEA voucher. Meanwhile, the buyer will get a great deal on verified IKEA furniture delivered to and assembled in his home.
The IKEA peer-to-peer program is currently available in Riyadh. The first phase covers Riyadh with a national roll-out planned in 2022. Learn more at https://www.melltoo.com/ikea.
Contact: [email protected] | Sharene Lee, COO @ Melltoo | +966 50 133 4787