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Amazon - A New Distribution Channel for Ikea?

Jim Riley

10th October 2017

IKEA was slow to move into online sales. However, it now appears to be accelerating changes to its traditional store-based approach to distribution.

The Financial Times and BBC report here on Ikea's plans to test the sale of Ikea products through third-party online sellers such as Amazon.

This would represent a significant change for Ikea. Among the challenges they will face will be the loss of profit margin (Amazon typically takes a 30-40% cut of the selling price) and how to maintain the Ikea brand image on third party websites.

The move is part of a broader review by Ikea of its distribution methods, although there is no suggestion that it will abandon its large-store format anytime soon.

The FT article reports that:

"Ikea is also experimenting with new store formats including city-centre pick-up points and specialised pop-up stores as well as smaller shops that have fewer car parking spaces and less inventory.

Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

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