The backups done by the launcher are local file backups saved locally. The backups done at character selection are local file backups saved to the cloud server. The button above the list of characters should backup cross-character settings (such as graphics, sound, resolution, account macros) and the button next to each character should backup the character configuration, HUD, keybinds, macros, for that specific character.

Inventory and retainer order is not stored locally in the first place. That information is already on the server.