Two-Channel Model for Refurbishers
Back Market
The key strategic move for smaller refurbishers is to use big marketplaces for demand while using their own shops to own supply and margins. A company like Easy Cash or Cash Converters can buy devices directly from consumers in local stores, then either resell those phones on a marketplace with ready traffic or sell them on its own site where it keeps more of the economics and owns the customer relationship.
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Back Market shows why this partnership path exists. It aggregates 2,700 refurbishers, reaches 15M consumers, and monetizes through seller commissions, monthly seller fees, buyer fees, and add on services. For a smaller refurbisher, listing there is the fastest way to turn repaired inventory into sales without building its own audience first.
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The direct channel matters because marketplace economics are shared. Back Market takes about 10% from sellers plus monthly fees, while vertically integrated operators like Swappie keep the full resale price but absorb repair, inventory, and fulfillment costs themselves. That creates a natural two channel model for regional specialists with local sourcing advantages.
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This split also mirrors how the market is segmenting. Broad marketplaces are winning on selection across phones, laptops, tablets, and consoles, while specialists win by controlling a narrow workflow, like buying iPhones from consumers, repairing them in house, and shipping with consistent quality. Each side fills the gap the other leaves open.
Going forward, more refurbishers are likely to look like hybrid merchants. They will source devices through stores, trade in programs, and repair networks, use large marketplaces to clear inventory quickly, and keep building direct storefronts where repeat buyers, warranties, financing, and trade ins make each device sold more profitable.