How will an online shopping increase cost of business?
Besides setting up an e comnerce site with payment options, there is little extra cost incurred. In fact, in long term, it will reduce cost and increase buying traffic to ikea.
In an online system, ikea can offer online purchase for purchase items as a package. They can offer more points for ikea members.
The physical store only has so much space for max number of walk in. Any more walk in customers, its not benefiting ikea.
So having an additional online shopping, ikea can have more revenue generated than just walk in customers purchases.
The delivery contractor are out sourced. No additional cost to ikea. in fact, it's more profit to the contractor due to online shopping purchases.
What's IKEA's return policy now? 90 days and only if the package is unassembled. Having a physical store ensures that customers cannot say that they didn't know what the item would be like assembled. I can see why an online shop really doesn't fit in with their philosophy of selling unassembled furniture and producing packages that are easy to self-assemble. They would probably have to rope in a lot more manpower to entertain an increased volume of customer complaints, either absorb the costs of returns via delivery contractor OR incur the wrath of unhappy customers who will proceed to declare that they will never buy from IKEA again, and if they give in to customers' demands of being unhappy with the half-assembled item, either choose to discard the half-baked outcome or disassemble, repack, etc. This will also require more storage space, depending on how quickly they can turn over the returned items. Does that sound simple? Not to me. The result will have to be an increase in their prices (which makes them less attractive to consumers in general) to maintain the same level of profits.
I'm also not sure if people these days in Singapore will be happy to click on furniture icons to buy things. There seems to be a greater focus on aesthetics and feel within one's home than the previous generations these days, so I feel that there's also a tendency to want to look at the physical piece of furniture (or be able to return it if they aren't happy, FortyTwo style at least), just from a local context.
Anyways, that's just my view.
On another note, it's interesting to note that IKEA started off as a mail order catalogue company (see history here).
Found this article on the topic...
If you have different preferences then this is your prerogative. Just don't expect or demand that every shop out there must follow your ideas. Or would you seriously ask a stall owner in a food court about an ordering portal and home delivery?
Even sites like fourty two operate very different from IKEA, where most products are sourced or dropped shipped, and not manufactured in house.
Last edited by daredevil123; 9th July 2014 at 12:52 PM.
IKEA stuffs, small one ok to buy. Else go other furniture mall. I hardly sees people did what TS said. Or should TS makes a few trips instead of one if he knew only 2 person doing it.
Only Sony device mostly, haha!
When I buy furniture, I must look, touch, measure, and fiddle with the real thing first.
i am certainly a very unhappy customer now!
You still dont get the point.
You still can visit their store, view the setup there for those items you have in mind. If you like it, you would hv the flexibility of ordering it online for big quantity and bulky things and get it delivered to you WITHOUT you going to the store and laboriously moving things yourself.
This service FOC if the furniture purchase amount >5000, which is easily reached. Just that day i hv already spent about 1300 on those items that i lugged at the store.
I should seriously consider this option for my the other house. But wonder if they still hv this service.
And of course there are many other points that I could make here, but since you don't bother reading, I won't bother typing.
those two really sleeping there? LOL
Last edited by Yutaka Go; 10th July 2014 at 08:13 PM.
I eats, shoots & leaves