Update: Ikea has issued the following statement.
"IKEA is not selling products on Amazon or any third party sites at this time. Any IKEA product on Amazon now is being sold by a reseller. IKEA has no relationship with them. Currently IKEA is only exploring opportunities to sell on online platforms, in addition to its own. IKEA sells its products at IKEA stores worldwide and on IKEA.com"
Original article continues below.
Swedish furniture company Ikea has finally decided to embrace online shopping. Soon Ikea products may be available on Amazon, and you will be able to sit at home and fill up your virtual cart to decorate your home. For people who don’t live near the superstore’s outlets, this could be a great way to order their preferred Ikea products online.
Ikea does have a website through which provides e-commerce services, but making Ikea products available on Amazon could open it to a whole new group of customers. Amazon offers free shipping to its Prime members, which is a big plus. Since Ikea manufactures and sells products like couches and dining tables which have a high shipping cost, it’s understandable that only limited number of products are sold through their e-commerce website. Shipping takes a toll on the profit margins of any company. Tying up with Amazon only means that now a higher number of products will be available for online sale.
Ikea now has 300 stores in 27 countries with an annual sale of $36 billion. It has become a global phenomenon and attracted a lot of furniture lovers from around the world. Ikea hasn't announced or confirmed about their partnership with the e-commerce giant. But if the rumor is true, then not only will the company reap more profit, but its buyers would be able to get the products delivered more easily.
Inter Ikea Group Chief Executive, Torbjorn Loof, told Reuters that there is plenty more coming before before anything is announced about the furniture brand tying up with an e-commerce website. The company is planning to give it a try and run a pilot test to see what the digital future holds for them. He said that they are at an advantage because they design, produce, and distribute their products.
However, no confirmation news has come out yet; this will be the very first time Ikea has experimented with something like this. It is also reported that the megastore is planning to open up smaller stores in metropolitan cities so that the city dwellers also have access to their services and produces.