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Old Dec 16th, 09, 8:24 am  
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Re: What's the deal with Ikea Direct shipping???

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Originally Posted by desb782 View Post
Are you kidding me? A company of IKEA's size gets better rates for shipping than smaller sized companies. Their shipping rates are absolutely absurd. There is no other way to describe it. IKEA.com would sell a lot more stuff if their shipping rates were not so CRAZY and OUT OF LINE with the rest of the retail world. I don't know who is in charge of their on line stuff but they should be fired immediately. Whoever runs Amazon's shipping or well...any other company on line's shipping should be hired. Shame shame IKEA!!!
How about getting some insight in all the logistical processes behind the shipping, before posting nonsense like that?
It's impossible to compare shipping charges for the products Amazon sells to the shipping charges for furniture.
And besides that, IKEA has a self-serve concept.

IKEA Direct probably barely earns them any money, so from that point of view there wouldn't be any reason for them to offer that service at all. Now at least the people who live far away from a store can still get the stuff if they want.

In most parts of Europe (where the distances the products would have to be shipped are generally a LOT shorter), IKEA decided not to offer an service like IKEA Direct, because of the enormous costs.

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Old Dec 16th, 09, 9:47 am  
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Re: What's the deal with Ikea Direct shipping???

REALLY?? How about gaining some insight into what Amazon sells before posting something as ignorant as that. Amazon and it's different companies, sell just about everything....and yes furniture as well. Hayneedle is another company that sells furniture and seems to be able to ship it to you without costing hundreds of dollars.

As a business IKEA should ALWAYS be looking for new ways to expand their market. Online is just one of the ways they should be exploring to move their merchandise.


As I said in my earlier post IKEA is doing themselves a disservice when they don't explore other options and move toward a global response.

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Old Dec 16th, 09, 10:53 am  
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Re: What's the deal with Ikea Direct shipping???

Sorry, my fault indeed
Didn't know they sold large products like furniture.

A big difference however is that Amazon and Hayneedle are online-only retailers, which means the whole supply chain is aimed at getting individual products to the customers at home against low shipping costs and as fast as possible.
IKEA's main source of customers will always be the physical stores, which means that that's where the logistical focus will be. Obviously the need for a service like IKEA Direct is much larger in the US than in Europe. Europe however has by far the largest turnover share.
IKEA's entire supply chain is aimed at reducing logistical costs by shipping in bulk and reducing the handling of products. A service like IKEA Direct collides head on with that strategy, which is why IKEA will never be able to ship to customers against the same rates as companies like Amazon.
Since IKEA's supply chain is a worldwide system, making changes in this just for the US would be next to impossible.

Just a few costs of a service like IKEA Direct:
- separate distribution centers (costs to build, maintain, equipment, etc etc)
- a separate flow of goods to those distribution centers
- all of the processes in these distribution centers (unloading, transport to the picking locations or the storage locations, picking, refilling of the picking locations, planning, loading, etc)
- lots of extra personnel
- new contracts with transport companies
- finding new suppliers to fulfill the additional demand (the stock for these distribution centers of course can't just be taken from the 'normal' distribution centers, and finding new suppliers isn't very easy nowadays)
- etc.

Anyway, IKEA of course has researched this subject thoroughly, if there was any chance of getting good profit out if it, it certainly would have been done

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Old Dec 16th, 09, 11:14 am  
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Re: What's the deal with Ikea Direct shipping???

You make some very interesting points ROYY. Let me address them individually.

1. You, stated, "Europe however has by far the largest turnover share." I would not argue with that. IKEA isn't user friendly to the market here in the USA and part of that is their unwillingness to be innovative and explore the ever increasing cash cow of online marketing. (more to come on that)

2. "Making changes in this just for the US would be next to impossible" Really? We have an old American saying: Necessity is the mother of invention. (or something along those lines) Many companies have both brick and mortar stores and online retailing. JC Penney is one. I have bought furniture from them online and I assure you it didn't cost anything near what IKEA does.

on a side note..I only happened onto the IKEA site because my son wanted a bookcase for his room.. I'm more of a Stickley girl myself..but he likes a more modern look. So, I went online and discovered that the closest IKEA was far enough away, that I didn't want to drive there for a 200.00 bookshelf. So....I went online and found out that the 200.00 bookshelf/bookcase would cost over 300.00 to ship to me. RIDICULOUS. For that cost I want someone to come to my house put it together..and clean his room too. Yes I said put it together. They aren't pre-assembled. So..why does it cost so much to ship? I shipped a Gustov Stickley antique desk from Tennessee to NY for 150.00..and it was in one piece and packaged as an antique should be.

3. Last but not least is this statement "Ikea of course has researched this subject thoroughly" This is the most interesting statement of all... How do you know that? I read the IKEAFANS statement that says that no one on this site works for IKEA..so how do you know what they have researched thoroughly? I can only guess that either you don't know it ...really ...or you do work for IKEA. Which if you do work for IKEA ..find yourself out of whatever basement they have you in and go pitch the idea of CHANGE. Yes a new broom sweeps clean. Brick and Mortar plus online = more money. They only have to do it right. As for me not an IKEA Fan...no..not so much!

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Old Dec 16th, 09, 11:42 am  
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Re: What's the deal with Ikea Direct shipping???

Quote:
2. "Making changes in this just for the US would be next to impossible" Really? We have an old American saying: Necessity is the mother of invention. (or something along those lines) Many companies have both brick and mortar stores and online retailing. JC Penney is one. I have bought furniture from them online and I assure you it didn't cost anything near what IKEA does.
Does JC Penney, for example, have a worldwide supply chain with some 1300 suppliers, like IKEA does? Probably not, which would be one of the main reason why it's a lot easier for them to adjust their supply chain to online retailing.



Quote:
3. Last but not least is this statement "Ikea of course has researched this subject thoroughly" This is the most interesting statement of all... How do you know that? I read the IKEAFANS statement that says that no one on this site works for IKEA..so how do you know what they have researched thoroughly? I can only guess that either you don't know it ...really ...or you do work for IKEA. Which if you do work for IKEA ..find yourself out of whatever basement they have you in and go pitch the idea of CHANGE. Yes a new broom sweeps clean. Brick and Mortar plus online = more money. They only have to do it right. As for me not an IKEA Fan...no..not so much!
I indeed work for IKEA. And, having worked in several different areas of IKEA's supply chain, I've been involved enough with this subject to know that there's more than enough willing for CHANGE, but that it's just not feasible at the moment, nor will it be in the coming few years.

If you know it better than the hundreds of logistics managers and accountants that've researched this subject, then I'm looking forward to seeing your well-fundamented tips


Sorry everyone if I came across a bit rude, just get a bit annoyed when people start talking about firing some of my colleagues and rant about IKEA without having any good arguments..

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Old Dec 16th, 09, 11:59 am  
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Re: What's the deal with Ikea Direct shipping???

I applaud your honesty ROYY. Admitting that you work for IKEA. I've read through some of the stuff posted on the IKEAFANS website and most wholeheartedly believed the IKEA workers were at the core of most of the "rebuttals". Funny, you don't see anything about that when you read through the IKEAFANS descriptions.

I really don't have too much to say about IKEA's furniture. You mostly have to put it together with screwdrivers and such..like the stuff you buy at Walmart or Target. But, I will admit they have a strong place in the market.

I actually was considering driving to the IKEA store tomorrow to buy the bookshelf/bookcase that my son wanted but now...well now I can't be bothered. If he wants a bookcase made of particleboard, that I have to put together, we can get that anywhere.

Believe me, with the can't do attitude of IKEA workers such as yourself...they will never break into the American market like they should.

Please ROYY don't apologize for any falsely perceived "harsh talking"..I'm a New Yorker. It would take more than that to offend me.

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Old Dec 16th, 09, 12:07 pm  
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Re: What's the deal with Ikea Direct shipping???

ROYY..I would love to give you my well-fundamented tips...as soon as I figure out what they heck your talking about. I'm accessing my well earned college degrees and nope.. I have nothing stored under well-fundamented.

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Old Dec 16th, 09, 12:34 pm  
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Re: What's the deal with Ikea Direct shipping???

Quote:
Originally Posted by desb782 View Post
I applaud your honesty ROYY. Admitting that you work for IKEA. I've read through some of the stuff posted on the IKEAFANS website and most wholeheartedly believed the IKEA workers were at the core of most of the "rebuttals". Funny, you don't see anything about that when you read through the IKEAFANS descriptions.
Just a note here on this point. Anyone can join Ikeafans. Yes, that means we have some Ikea workers. But they don't own or run the website/forums, nor is opinion filtered by Ikea in any way. Personally, however much an "Ikeafan" I am, I feel perfectly comfortable complaining/criticizing as I am moved to do so!

By the way, this topic has been discussed before, and the high shipping cost is much lamented. But whereas both Amazon (exclusively) and JC Penney (historically) were organized around direct shipment to consumers, the heart of Ikea is in the stores and everything is set up to serve that model, for better or for worse. Many here feel like some compromises might be possible, but in this economic climate big changes are pretty unlikely.

Quote:
I really don't have too much to say about IKEA's furniture. You mostly have to put it together with screwdrivers and such..like the stuff you buy at Walmart or Target. But, I will admit they have a strong place in the market.
Yep, and that's deliberate. Saves huge money in transport and storage, which they pass on to the consumer. And yes, at the low end their market is not all that different from Target or Walmart. The difference is the range of product lines, the styling, and the quality of the upper end, particularly in kitchens. The blum hardware in Ikea's kitchens is exactly the same as the hardware in the fancy smancy high end Euro style custom kitchen stores--for ridiculously low prices. That's because Ikea can buy out a factory's annual production and make you assemble the parts. Personally, I'm very happy with that deal, since it's the only way we could have afforded the kitchen we enjoy so much.

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Old Dec 16th, 09, 12:49 pm  
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Re: What's the deal with Ikea Direct shipping???

"Saves huge money in transport and storage, which they pass on to the consumer." Not feeling the HUGE money savings in transport.

Look ROYY here's the deal...I understand how IKEA has ALWAYS done it..I get it. I get that change is a harsh mistress. Employees very often resist change...as do companies. However...

IKEA needs to change if they want to grow. If they are content with doing business as they always have..they risk becoming extinct.

You can argue all day long how different companies such a JC Penney, Home Depot... and the like aren't the same as IKEA...yea, I get that too. But...essentially portions of what they are can be used as models for what IKEA could become, if they are willing to take calculated chances.

It doesn't cost 100.00 (approx) to ship a small Billy BookShelf..it just doesn't. I also understand that sofa's and the like would have to be shipped differently ..perhaps with a different carrier..but, a very large majority of the stuff sold by IKEA can be shipped very very very easily. Arguing against that is ignorant.

Change.......is often a good thing.

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Old Dec 16th, 09, 1:07 pm  
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Re: What's the deal with Ikea Direct shipping???

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Originally Posted by desb782 View Post
"Saves huge money in transport and storage, which they pass on to the consumer." Not feeling the HUGE money savings in transport.
I should have said in the stores. Ikea ships pallets of flat packs to stores, which require the consumer to pull the products themselves (things like Billy at least). In that scenario, Ikea saves: you save. Direct shipping to the consumer requires repackaging, individual shipments, extra labor to handle things, etc. The labor being key: that extra cost is virtually all on the handling side of the "shipping and handling" equation and at this point Ikea is not especially motivated to offer good deals. Whether they should be is an interesting question and one which only time will answer...

--beth (not ROYY)

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