Although we hold stock of IKEA items in Johannesburg, we are not officially affiliated to IKEA, just huge fanatics of their products. The fact that our IKEA products are parallel imported has nothing to do with the authenticity of the product (it is completely genuine, and purchased normal retail from an IKEA store overseas) but means it has been imported without the approval, or license of Inter IKEA Systems B.V (the registered owner of IKEA) and therefore no guarantee or warranty in respect of such goods will be honored by them, however the Home Swede Home returns policy applies to all items purchased from us.
IKEA has no official franchisor or licensed supplier in South Africa at the moment and does not seem to have intentions to enter the South African market right now. This will probably change in time we hope.
We are just huge fans of IKEA products, till they do come to the country we are here to help fans like ourselves and give South Africans some option to access the IKEA products.
To understand our pricing and business model, we go to an IKEA store and purchase at normal retail prices.
Aside from the normal IKEA retail price we incur the following other costs:
- When comparing the pricing to the IKEA USA website please keep in mind that in the USA unlike South Africa the price you see is not the price you pay. In South Africa there is VAT that is included in selling prices, however in the USA there is Federal and local sales tax that is added to the displayed price when you are paying at checkout. This tax of 8.5% should be considered in your comparison as when we purchase in the USA we have to pay the store the listed selling price and the 8.5% sales tax.
- Shipping, insurance and clearing costs.
- 20% to 40% South African customs duties, depending on the item.
- South African customs VAT.
- Costs to purchase at the IKEA store and to pack the container.
- Bank forex commissions and charges.
And of course we have to make a small margin to cover our local running costs.
Something to also consider is that the IKEA USA website pricing is for instore purchase or collection. If a delivery is required they charge extra, however with us in certain instances South African courier is covered in the price.
We have many happy clients whom really like the IKEA products and are happy we give them access to them locally. For us, IKEA products have some of the coolest designs and ideas, and for their place in the market their quality is better than most.
This a side-hustle business for us. Due to our operating model of purchasing retail we cannot afford to make enough to do this full time, hence why our warehouse is only open on weekends (Fri, Sat, Sun and Mon). We love IKEA products and appreciate their super cool designs and ideas, this is the passion that drives us to continue doing this.
Team Home Swede Home