Something you can't miss in Reykjavik is one of their specialities - woollen knitwear (for example sweaters, cardigans, hats and mittens). They are of great quality but reasonable price. For example, a very very well made woolen blanket (200cm x 130cm) costs only 600SEK here, which you need to pay double price for in Sweden.
Bargaining is not part of the Icelandic culture. If there is a charge you’ll have to pay. Don’t haggle. In Iceland the price is the price. Kolaportið, the flea market in Reykjavik, is the only exception to this rule. Kolaportid Flea Market is located in the customs building by the old harbour in the city centre, and it is open Saturdays 10:00 - 17:00 and Sundays 11:00 - 17:00.