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Why Back Market's Business Model is so successful?

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Back Market’s Company Overview


Back Market is a leading online marketplace dedicated to refurbished electronic devices and appliances. Founded in 2014 and headquartered in Paris, France, the company aims to create an alternative to the throwaway consumer culture by offering a platform for consumers to purchase high-quality, refurbished electronics. Back Market's extensive product range includes smartphones, laptops, tablets, home appliances, and more from over 1,000 certified refurbishers, distributors, and retailers. The company operates in more than 30 countries worldwide, including the US, UK, Germany, and France, and is committed to reducing electronic waste by extending the lifespan of electronic products. Business Model: Back Market's business model is based on a B2C (Business-to-Consumer) and B2B (Business-to-Business) marketplace. The company does not refurbish or sell products directly. Instead, it serves as a platform connecting certified refurbishers with consumers looking to purchase refurbished electronics. Each product sold on the platform goes through rigorous testing and quality checks to ensure it meets Back Market's high standards. The company also provides a 12-month minimum warranty for all products sold on its platform, offering customers peace of mind and trust in their purchases. Revenue Model: Back Market's primary source of revenue is the commission it charges on every sale made through its platform. The rate of commission varies depending on the category of the product sold. This commission-based model allows Back Market to generate revenue without the need to maintain inventory or handle logistics, as the refurbishers and sellers manage these aspects. The company also earns revenue from advertising and promotional services offered to sellers on its platform.

https://www.backmarket.com/en-us

Country: France

Foundations date: 2014

Type: Private

Sector: Consumer Goods

Categories: eCommerce


Back Market’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access

Functional: reduces cost, quality, variety, informs


Back Market’s Related Competitors



Back Market’s Business Operations


Collaborative consumption:

Collaborative Consumption (CC) may be described as a collection of resource circulation systems that allow consumers to both get and supply valued resources or services, either temporarily or permanently, via direct contact with other customers or through the use of a mediator.

Cross-selling:

Cross-selling is a business strategy in which additional services or goods are offered to the primary offering to attract new consumers and retain existing ones. Numerous businesses are increasingly diversifying their product lines with items that have little resemblance to their primary offerings. Walmart is one such example; they used to offer everything but food. They want their stores to function as one-stop shops. Thus, companies mitigate their reliance on particular items and increase overall sustainability by providing other goods and services.

Digital:

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

Disintermediation:

Keeping the purchase price low by avoiding mediators and maximizing supply margins is a win-win situation. In finance, disintermediation refers to how money is removed from intermediate financial organizations such as banks and savings and loan associations and invested directly. Disintermediation, in general, refers to the process of eliminating the middleman or intermediary from future transactions. Disintermediation is often used to invest in higher-yielding securities.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Experience selling:

An experience in the sales model describes how a typical user perceives or comprehends a system's operation. A product or service's value is enhanced when an extra customer experience is included. Visual representations of experience models are abstract diagrams or metaphors derived from recognizable objects, actions, or systems. User interfaces use a range of experience models to help users rapidly comprehend what is occurring in the design, where they are, and what they may do next. For example, a software experience model may depict the connection between two applications and the relationship between an application and different navigation methods and other system or software components.

Low cost:

A pricing strategy in which a business provides a low price in order to drive demand and increase market share. Additionally referred to as a low-price approach. The low-cost model has sparked a revolution in the airline industry. The end-user benefits from low-cost tickets as a result of a revenue strategy that seeks various sources of income. Ryanair was one of the first businesses to embrace this approach.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Sustainability-focused:

Companies that manufacture fast-moving consumer goods and services and are committed to sustainability do ecological impact assessments on their products and services. While research-based green marketing needs facts, green storytelling requires imagination and location. Employees responsible for the brand definition and green marketers collaborate with product and service designers, environmental groups, and government agencies.

Trash to cash:

Trash to cash may be an extremely profitable business strategy. It entails collecting old goods and repurposing them or reselling them to other areas of the globe. It may be very lucrative for two reasons. The first reason is that most of these goods can be obtained for little or no money, dramatically boosting the profit margin. Furthermore, companies pay to have their garbage collected, which may be a lucrative revenue stream. It may be a double whammy for a business that is compensated to remove debris.

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