Why doesn't Ikea sell online?

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M

Morgan

  • #1
    Small items I mean, I know you can get larger things delivered. It's a particular bug bear of mine as it means a 45 min drive to my local one so inevitably can't just 'nip' and end up buying things from elsewhere or ebay where there are specialist Ikea shops but obviously with a good mark up.

    Surely they're missing a trick by not having a comprehensive online shop?
     
    fisicx

    fisicx

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  • #2
    Doesn't fit their business model.

    If you wander round their store following the path of doom you will pick up all sorts of stuff you don't really need. If they sold online you wouldn't do that.

    In Sweden Ikea is regarded as cheap tat, a bit like MFI when it was really pants.
     
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    cautiouscapy

  • #4
    I suspect that their margins are so tight it's not worth their while to pick and pack small items for online orders? They'd lose money on each sale.

    I laugh at those reselling on Ebay; but when I consider the petrol and time to get to my nearest Ikea (similar distance to you), it would actually be economically more sensible to use an Ebay re-seller in preference if I just wanted a small item.

    There were plenty of man and van operations in locations far from an Ikea making money by taking orders and collecting in bulk (charging comission/delivery) when Ikea was pick-up only.

    I guess Ikea started offering online order/delivery to get that slice of the pie.
     
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    M

    Morgan

  • #6
    Yeah, I get what you're saying about the buying things when you walk round the shop but for me and surely loads like me, they're loosing sales full stop. Not many big shops don't have an online site as well these days?
     
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    KidsBeeHappy

    KidsBeeHappy

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  • #12
    At the moment they store all stock in bloody great warehouses where the customers, pack, pick, pay and take home.

    An online shop would require them to pay people to do all of the above. Additionally, do you really think that argos pay £5.99 to the courier company to deliver the sofa to you? So there are costs of delivery and transport. And of the IT systems needed to process the sales, payments, stock pick, distribution & logistics. Plus as mentioned, the customer services staff to deal with the returns, the missing bits, the damages, those customers who just like to harass customer service departments.

    Seems quite obvious to me.
     
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    Morgan

  • #15
    sandiep said:
    At the moment they store all stock in bloody great warehouses where the customers, pack, pick, pay and take home.

    An online shop would require them to pay people to do all of the above. Additionally, do you really think that argos pay £5.99 to the courier company to deliver the sofa to you? So there are costs of delivery and transport. And of the IT systems needed to process the sales, payments, stock pick, distribution & logistics. Plus as mentioned, the customer services staff to deal with the returns, the missing bits, the damages, those customers who just like to harass customer service departments.

    Seems quite obvious to me.
    Click to expand...

    I understand all that but other large stores do online delivery as well so I'm surprised that it's just not cost effective to do it for Ikea?
     
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    KidsBeeHappy

    KidsBeeHappy

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  • #17
    Morgan said:
    I understand all that but other large stores do online delivery as well so I'm surprised that it's just not cost effective to do it for Ikea?
    Click to expand...

    Because other shops have migrated online from the highstreet, where moving to online represented cost savings rather than additional costs. Where they could aggregate distribution and warehousing channels, reduce the number of premises owned and maintained, reduce the number of staff paid to operate the stores, service the customers, fill the shelves etc.

    Take Littlewoods/Very for example. Shut hundreds of very large stores, build a very good website, bung a few million at advertising.

    The high street stores that do online most well (whilst still maintaining/increasing high street presence) use the stores as part of their distribution network for consumer orders (pick up instore).

    If you want a comparison, the comparison is models like the Supermarket online shopping, where ASDA/Ocado etc are investing millions in building & improving their fulfillment channels for online. Online can be really cheap if you're doing an amazon and starting from a nil base as a brand new online company. However, if you're an established business you will be constrained by the physical, and there are huge costs in changing business models partic to meet the next day delivery that customers expect.
     
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    LicensedToTrade

    LicensedToTrade

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  • #19
    You get what you pay for with Ikea. Yes it has a bit of a reputation as a purveyor of crap but it has its uses.

    Rather than travle 4 hours to work everyday I decided to rent a place nearby. I kitted it out with a couple of thousand pounds of Ikea crap and saved myself a fortune. ...what I didn't take into consideration was the loss of time and increased blood pressure associated with putting the bloody things together. If I never see another allen key again it will be too soon. :mad:
     
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    Esk247

  • #21
    I'd love to see a property decked out with ikea furniture from living room to bedroom...everything would look a bit wobbly, a bit wonky, a bit creaky..it must be somewhere near what Pete Docherty sees when he gets home on a saturday night..only he's never been to ikea :eek:
     
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    LicensedToTrade

    LicensedToTrade

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  • #22
    Esk247 said:
    I'd love to see a property decked out with ikea furniture from living room to bedroom...everything would look a bit wobbly, a bit wonky, a bit creaky..it must be somewhere near what Pete Docherty sees when he gets home on a saturday night..only he's never been to ikea :eek:
    Click to expand...

    I hope you aren't doubting my skills with an allen key? I'll have you know that after getting through £2k of the stuff I'm a bit of a dab hand at it.

    Although I made a bit of a balls up with an Ikea 'Billy Bookcase' (every home has one) The thin plywood backing panel only has the finish on one side. I put it on the wrong way round before nailing it on. :redface:

    ...and that's why you will always find me in the kitchen at parties...
     
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    Matt1959

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  • #26
    Esk247 said:
    I'd love to see a property decked out with ikea furniture from living room to bedroom...everything would look a bit wobbly, a bit wonky, a bit creaky..it must be somewhere near what Pete Docherty sees when he gets home on a saturday night..only he's never been to ikea :eek:
    Click to expand...

    I'm wondering whether you're talking from ownership of several items experience here?! Anyone that knows about furniture will realise that many Ikea furniture products are actually very well thought out and, for the price, well made. We've got a small pine kitchen table and 4 chairs that we've had for 5 years and its had heavy family use. Paid £99 from ikea for the lot. After 5 years , nothing wrong with it. If it had been from another source for £99, it would be firewood by now.....we've had other ikea furniture inc a kitchen in our last house and I cant fault any of it. It is what it is - fantastic value for money
     
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    Esk247

  • #27
    Matt1959 said:
    I'm wondering whether you're talking from ownership of several items experience here?! Anyone that knows about furniture will realise that many Ikea furniture products are actually very well thought out and, for the price, well made. We've got a small pine kitchen table and 4 chairs that we've had for 5 years and its had heavy family use. Paid £99 from ikea for the lot. After 5 years , nothing wrong with it. If it had been from another source for £99, it would be firewood by now.....we've had other ikea furniture inc a kitchen in our last house and I cant fault any of it. It is what it is - fantastic value for money
    Click to expand...

    I just had an image of a totally pine interior on someones brand new semi detached in Essex.

    "Whats with the sticks Dave?"
    "Oi, thats me sofa that is"

    I have a warped sense of humour :rolleyes:
     
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