As part of my quest to find potential FBA deals that are not media related, my next adventure lead me to the furniture store IKEA. I went there for the first time in their Charlotte, NC location. To say the least, I was pretty impressed.
Their store is laid out in an amusement park style format where you’re forced to walk around and view the furniture before going to the warehouse and cashier where you ultimately buy the items.
The one thing that I like about their furniture…it is:
1) Modern Looking
2) Inexpensive
3) Easy to put together
4) Simple
Not only did I buy some end tables and coffee tables for myself, I couldn't resist thinking of some FBA opportunities.
IKEA has a cult like following (much like Trader Joe’s) and there are only so many locations. Also, the store was packed and the checkout line had to be about 50 yards long.
I’m sure people would love to receive their IKEA items with 2 Day Shipping (via Amazon Prime)…so they wouldn’t have to drive to the store and wait in line.
Ikea does have a website where they sell online, however, the shipping costs are high – plus you have to wait up to 3 weeks for delivery.
Anyway, here are some IKEA flips.
IKEA LACK END TABLE BLACK
I bought this for $8.80 and sold it for $49.00 on Amazon FBA
IKEA LACK COFFEE TABLE BLACK/BROWN
I bought this for $22.00 and sold it for $79 on Amazon FBA
The detailed cost – sales – profit analysis spreadsheet is below. I use the Basic eSales Bookkeeping Spreadsheet with some modifications. Here's a youtube video for more info on the spreadsheet.
(click to enlarge)
Hey, Nathan
Thanks for sharing this. Wow, I had never considered IKEA as a source for inventory.
I have a question. How was it to ship the items to Amazon? Was it expensive or difficult?
Thanks!
Hey Serena,
Finding the right box was the only difficult part. I was able to find some on eBay and this site:
http://www.usedcardboardboxes.com/
Thanks for reading!
-Nathan
Nathan:
Why did you have to use other boxes other than the ones from IKEA?
Thanks,
Larry
Hey Larry,
I put several of the IKEA items (which are already in a box) into a bigger box. Then I ship to Amazon.
-Nathan
I grew up in IKEA country. Great merchandise at most reasonable pricing. However, your suggestion is well-intended IF YOU LIVE WITHIN PICK-UP DISTANCE OF THEIR STORE. Otherwise you have a freight factor to consider in your COS -… Then profits don’t look so good anymore!! Regards, Tom
Very true Tom. You have to live close to a store to make this work. But, that is why people are willing to pay 3-4 times the IKEA price.
I looks like your idea caught on quick, Nathan, as now sellers are pricing the Lack table starting at $23, and yours is now at $46.
Yes, plenty of IKEA items already have some FBA competition. However, there are still hundreds of IKEA items that are not even listed on Amazon yet.
Hey, Nathan
Thanks for sharing this idea to consider IKEA as a source for inventory i think its a good suggestion.
thanks
I used to flip IKEA items years ago on eBay… I don’t know why I never made the connection to sell it on Amazon – Thanks!
Amazon is a good place to sell but it takes soooooo long to sell something. I make money quicker on eBay. I sell for less than Amazon but the money comes quicker! So, things that I know won’t sell well on eBay I put on Amazon knowing they will sit there for several months.
Just goes to show us, that we need to OPEN our eyes to all possibilities!
Thanks for opening my eyes; never considered that either. I just think of furniture as being too heavy for shipping, but obviously not all of it is!
you never cease to amaze me, so many good ideas you have.
I live 15 minutes from IKEA.
I am FBA.
In your concept, do I need to have IKEA stock in stock at FBA?
I had my shipped in order to FBA on the dock for 70 days.
I do not like to keep my customer waiting.
Any ideas? Maybe a website AEKI ?
I love your bookkeeping software.
Mary
Mary,
I guess I’m confused on why your FBA items would be on the dock for 70 days. When I ship items, it is usually delivered and up for sale within 3-4 days.
-Nathan
I would have never considered IKEA as a sourcing location. Thanks for the tip.
Are all the items sold by IKEA exclusive to IKEA?
When you buy items from IKEA do you buy multiples of the same product?
Seems like a lot of work for just 1 or 2 items.
My nearest IKEA is in Chicago which is 200 miles so I would like to buy multiples
hopefully of a smaller item.
Does that make sense?
Yes, I buy multiples of the same item. I would be careful not to buy too many of the same. Just in case they don’t sell or if another FBA seller comes in at a very low price.
Hello Nathan,
I was trying to scan ikea items today using my seller app but none of the items I could scan.
I noticed even those ikea items which were already on Amazon, I was not able to scan.
Really need a working suggestion. Plus, how much per pound do you pay as FBA to ship to Amazon. I am independent seller but will be going for FBA soon.
Hmmm. Just to check, did you test your app on items other than Ikea products? If it doesn’t work for other products, you can try to uninstall and reinstall the app.
If you’re using Android, check the permissions of the app.