Choosing the right platform can make or break your business. Amazon, a global e-commerce giant since 1994, boasts an unmatched level of traffic, offering vast exposure and access to millions of customers across countless countries. However, this success comes with intense competition and high seller fees, making it a challenging environment for new and smaller businesses.
On the other hand, BackMarket, which launched in 2014, focuses on refurbished electronics and provides a more niche marketplace. While its user base is smaller, the platform’s growing traffic and specialized audience can be a strategic advantage for sellers in the tech space. But which platform is truly best for your business? Keep reading as we dive deeper into the pros and cons of selling on Amazon versus BackMarket.
Overview
Amazon
Amazon, launched in 1994, is the world’s largest e-commerce platform, offering a vast marketplace that spans nearly every product category, from electronics to groceries. It provides a variety of selling models, including retail and third-party marketplace options, allowing businesses of all sizes to reach millions of customers globally.
With advanced fulfillment services like FBA (Fulfillment by Amazon), sellers can take advantage of Amazon’s vast logistics network. However, with its massive traffic comes fierce competition and significant fees, making it both a high-reward and high-risk platform. Amazon is ideal for sellers looking to scale quickly and reach a global audience.
BackMarket
Founded in 2014, BackMarket is a niche marketplace focused on refurbished electronics, offering a sustainable and affordable alternative to buying new tech products. The platform connects certified refurbishers with eco-conscious consumers who want high-quality, pre-owned devices like smartphones, laptops, and home appliances at a lower cost.
BackMarket’s growing reputation for product quality, coupled with its unique sustainability angle, sets it apart from broader e-commerce platforms. While its audience is smaller than Amazon’s, it’s highly targeted, making it a strong choice for sellers in the tech and refurbished goods space.
Product line
Amazon
Amazon offers a vast and diverse product line, covering nearly every category imaginable. From electronics and clothing to groceries and home goods, it serves as a one-stop shop for consumers worldwide. Its marketplace allows third-party sellers to offer everything from niche products to mass-market items, creating an extensive product range.
| Category | Examples |
| Electronics | Smartphones, Laptops, Smart Home Devices |
| Clothing & Apparel | Fashion, Shoes, Accessories |
| Home & Kitchen | Furniture, Kitchen Appliances, Home Decor |
| Books & Media | Books, Movies, Music, Games |
| Groceries & Health | Food, Vitamins, Personal Care Products |
BackMarket
BackMarket specializes primarily in refurbished electronics, offering consumers a range of pre-owned devices with warranties. The platform focuses on tech products, catering to those looking for affordable, sustainable alternatives to brand-new electronics. It includes smartphones, laptops, and home appliances, all inspected and certified by professional refurbishes.
| Category | Examples |
| Smartphones | iPhones, Samsung Galaxy, Google Pixel |
| Laptops | MacBooks, Dell, Lenovo |
| Tablets | iPads, Samsung Tablets |
| Home Appliances | Refurbished Kitchen Appliances, Vacuum Cleaners |
| Wearables | Smartwatches, Fitness Trackers |
Business Model
Amazon Business Model
Amazon operates on a multifaceted business model, combining retail, marketplace, and subscription services.
Retail Model: Amazon directly sells products through its own inventory, competing with traditional retailers. It handles product sourcing, pricing, warehousing, and delivery.
Marketplace Model: Amazon allows third-party sellers to list their products on its platform, earning a commission on each sale. This creates a vast array of products and offers sellers access to Amazon’s massive customer base, but with high fees and competitive pressure.
Fulfillment by Amazon (FBA): For a fee, sellers can have Amazon handle inventory storage, packing, and shipping. This makes it easier for sellers to scale, but it also increases costs and depends on Amazon’s terms.
Amazon Prime & Subscriptions: In addition to product sales, Amazon generates substantial revenue from its subscription services, such as Amazon Prime, which offers free shipping, streaming services, and exclusive discounts.
Amazon Web Services (AWS): Although not related directly to its e-commerce model, Amazon’s cloud service arm, AWS, is a key part of its business and a major profit generator, supporting its overall operations.
Key Features:
- Global Reach: Amazon operates in multiple countries, offering a broad geographical footprint for sellers.
- Traffic & Scale: The platform sees massive traffic, providing significant exposure, but also creating stiff competition.
- Fees & Commissions: Sellers face varying fees, including listing, referral, and shipping fees, which can eat into margins.
BackMarket Business Model
BackMarket has a more specialized business model focused primarily on refurbished electronics. The platform connects certified refurbishers and consumers, positioning itself as a sustainable and affordable alternative to buying new tech.
Refurbished Product Focus: BackMarket sells used, repaired, and certified electronics such as smartphones, laptops, tablets, and home appliances. It works with certified refurbishers to ensure the products meet quality standards, and each product comes with a warranty.
Marketplace for Refurbishers: Similar to Amazon’s third-party marketplace, BackMarket allows sellers (refurbishers) to list their products. However, it’s niche-specific, offering a marketplace for pre-owned devices rather than a broad spectrum of goods.
Quality Assurance & Warranty: Unlike many other second-hand marketplaces, BackMarket guarantees that products are inspected, repaired, and certified before listing. This reduces consumer risk and builds trust in the brand.
Subscription Model (Limited): BackMarket is exploring subscription-based services, such as device trade-ins or replacements, further emphasizing the circular economy and reducing electronic waste.
Key Features:
- Niche Audience: BackMarket appeals mainly to price-conscious buyers and environmentally-conscious consumers who prefer refurbished electronics over brand-new ones.
- Smaller, Targeted Traffic: The platform sees less overall traffic than Amazon but benefits from a loyal, targeted audience looking specifically for refurbished tech.
- Lower Fees: BackMarket typically charges lower seller fees compared to Amazon, which can be attractive to sellers dealing with high-volume, lower-margin products like refurbished electronics.
Marketing Strategies
Amazon
Selling on Amazon requires leveraging multiple marketing strategies to stand out in a crowded marketplace. The platform offers a range of tools to help sellers boost visibility and drive sales.
- Amazon Sponsored Ads (PPC)
Amazon’s Sponsored Products is a pay-per-click (PPC) advertising model where sellers bid for relevant keywords. These ads appear in search results and product pages, driving immediate traffic to listings. Sponsored Brands allows sellers to showcase their brand with a custom headline, logo, and multiple products, while Sponsored Display helps retarget customers who have shown interest in similar products, both on and off Amazon.
Amazon SEO
Optimizing your product listings is crucial for organic visibility. This involves using the right keywords in titles, descriptions, and backend search terms. Amazon’s A9 algorithm ranks products based on relevance and conversion rate, so listing optimization is key.
Promotions & Deals
Amazon offers several promotional tools, such as Lightning Deals, Coupons, and participation in major events like Prime Day. These promotions can give your products a significant visibility boost during peak shopping seasons.
Customer Reviews
Positive reviews are critical for Amazon rankings. Sellers should actively encourage reviews, as high ratings and authentic feedback can increase trust and conversion rates.
BackMarket
BackMarket’s marketing strategy revolves around its unique position as a marketplace for refurbished electronics. Sellers on BackMarket must understand the niche market and use targeted strategies to reach eco-conscious and budget-conscious consumers.
Content Marketing & Education
One of BackMarket’s key selling points is the sustainability aspect of refurbished products. Sellers can leverage this by creating educational content that highlights the environmental benefits of buying refurbished electronics. BackMarket’s platform itself promotes this messaging through blogs and guides, making it essential for sellers to align with the green, cost-effective narrative.
SEO and Product Listings
Just like Amazon, BackMarket relies on robust SEO practices. Sellers need to optimize their product titles, descriptions, and tags using high-traffic keywords that emphasize terms like “refurbished,” “certified,” and “warranty.” High-quality images and clear, honest product descriptions will also improve visibility in search results.
Promotions & Special Offers
BackMarket often runs promotions to attract customers, such as seasonal sales or discounts on high-demand categories. Sellers can participate in these events to increase sales volume. They can also offer bundle deals or discounted prices on older models to create a sense of urgency.
Customer Trust & Reviews
Building trust is crucial on BackMarket. Refurbished products often come with skepticism, so customer reviews play a significant role. Sellers should focus on ensuring product quality, offering warranties, and encouraging satisfied customers to leave feedback.
Reporting and Analytics
Amazon
Amazon provides a comprehensive suite of reporting and analytics tools to help sellers optimize their sales and operations. The Amazon Seller Central dashboard offers detailed insights into sales performance, inventory levels, and customer behavior. Key reports include Business Reports, which track sales, traffic, and conversion metrics, and Inventory Health Reports, which help sellers manage stock and avoid overstocking or stockouts.
The Advertising Reports offer data on the performance of Sponsored Ads, including click-through rates (CTR) and return on ad spend (ROAS). Sellers can also monitor customer feedback, returns, and performance metrics to refine their strategies. These insights are vital for improving product visibility, optimizing listings, and maximizing profits, while the data-driven approach helps sellers identify trends and potential growth opportunities.
BackMarket
BackMarket provides analytics tools specifically tailored for its marketplace, focusing on sales performance, customer behavior, and product visibility. The Seller Dashboard offers detailed insights into product views, conversions, and the overall health of listings. Sellers can track metrics such as Click-Through Rate (CTR), Conversion Rate, and Average Order Value (AOV), allowing them to adjust their strategies based on customer preferences and product performance.
Additionally, BackMarket provides data on product availability and fulfillment, helping sellers stay on top of inventory. While the reporting tools may not be as extensive as Amazon’s, they are targeted for sellers in the refurbished electronics niche, enabling them to make data-driven decisions for sustained growth.
Account Creation
Amazon
Creating an Amazon account is simple. Users visit the Amazon website or app, click on “Create an Account,” and fill in details like their name, email address, and password. Once registered, they can customize their profile, add payment methods, and start shopping. Sellers go through a more detailed process by providing tax information, bank details, and verifying their identity.
BackMarket
Creating a seller account on BackMarket involves registering on their Seller Portal. You’ll need to submit business details, including tax information and identification, and agree to their terms. BackMarket reviews your application before granting approval to start listing products.
Major Differences to Consider
So far we have learned everything about both platforms including their business models, marketing strategies, product reviews etc. If you are confused in making decision, here are the factors you need to consider when choosing one platform amongst both
Target Audience
Understanding the platform’s customer base is essential. Amazon offers access to a broad, global audience, while BackMarket appeals to eco-conscious consumers looking for refurbished electronics. Know who you’re selling to for the best product fit.
Fees and Costs
Every platform has its fee structure. Amazon’s fees include listing fees, referral fees, and optional costs like FBA. BackMarket charges commission on sales but typically has lower seller fees compared to Amazon, making it a more cost-effective option for refurbished products.
Competition
Amazon’s vast marketplace means high competition in nearly every category, which can make it harder to stand out. In contrast, BackMarket’s focus on refurbished tech creates less direct competition but requires a focus on product quality and trust-building with consumers.
Marketing and Promotion Tools
Amazon provides a wide array of marketing tools, from Sponsored Ads to Prime promotions, helping sellers drive traffic. BackMarket has fewer marketing options but its niche audience allows for a more targeted approach to promotion through sustainability-driven messaging.
Fulfillment and Logistics
With Amazon, sellers can take advantage of FBA for efficient fulfillment, but at a cost. BackMarket relies on its sellers to manage their own fulfillment, though the platform supports logistics for refurbished items. This means Amazon offers a more hands-off fulfillment solution for scaling businesses.
Conclusion
Choosing the right platform to sell on depends on several factors including your target audience, budget, and product type. Amazon offers global reach and powerful tools but comes with high competition and fees. BackMarket is ideal for sellers in the refurbished tech space who want to tap into a growing niche with lower costs but more hands-on management. Evaluate your business needs carefully before making a decision to ensure long-term success.
FAQs
- What is the difference between Amazon and BackMarket?
Amazon is a general marketplace with a broad product range, while BackMarket specializes in refurbished electronics.
- Which platform is better for new businesses?
Amazon may be better for new businesses due to its massive traffic and diverse customer base, though the competition is fierce.
- How do I manage fulfillment on BackMarket?
Sellers on BackMarket manage their own fulfillment, including shipping and returns, though the platform offers support for refurbishers.
- Are the fees higher on Amazon than BackMarket?
Yes, Amazon tends to have higher fees, including listing, referral, and FBA charges, while BackMarket’s fees are generally lower for refurbished items.
