Cost To Build An Online Marketplace App To Drive 10x Sales?

So how much does it cost to build an online marketplace app? If you are searching for an answer to this question then surely you are already impressed with the success figures of existing online buying and selling apps like Amazon, Etsy or eBay.

No doubt, online marketplace apps like Amazon or Etsy have forged the path of online retail sales for years, but having maintained their leadership in this ecommerce domain is such a big success. 

In 2023, Etsy surpassed 9 million active users and had made 96.2 million revenue. As per Statista, global retail e-commerce sales reached an estimated $5.8 trillion in 2023 and are expected to surpass eight trillion dollars by 2027. 

Both platforms stand as the most visited online marketplaces worldwide. The concept of creating a non-stop online shopping mall where endless third-party vendors offer their products and services has not remained new, but the ecommerce boom spawned a plethora of opportunities for retailers, it makes sense to venture into this industry with an innovative approach. 

While talking about building a buying and selling platform in the US, two ecommerce giants still have the upper hand (Amazon and Etsy), but new competitors are constantly measuring up. 

Still wondering whether hiring an ecommerce mobile app development company in the USA is a worthy decision? If you are not yet sure about stepping forward, then here you need to know all the market stats and facts about online marketplace platforms.

Market Insights: Online Marketplace Platform and Its Future Scope

Whether you are planning to migrate your retail store online marketplace or looking to expand your ecommerce business, investing in developing buying and selling apps is a worthy decision. However, developing an ecommerce app is a comprehensive approach that requires detailed planning and a strategic development process and involves a huge investment. But don’t take our word for it. Before you make any final decision, here you can go straight into the market stats and facts…

• According to the reports, there are 20.1% of retail purchases will take place online in 2024 which is expected to reach 22.6% by 2027. It is a sign to invest more in the online presence of your business and stay relevant in the current eCommerce market trends. 

• The global eCommerce market will surpass $6.3 trillion by 2024, which is almost 8.76% increase from 2023. 

• The US retail eCommerce sales stand at $579 billion as of the first half of 2024. 

• 44% of shoppers start their shopping journey on a search engine and 41% do so directly on online stores like Amazon or a business’s website. 

• Online consumers will spend the most on electronics, which is estimated to be $922.5 billion in sales this year. 

The marketplace industry is expected to grow at a CAGR of 14.7%!.

Become a part of this soaring ecommerce market by simply hiring app developers in the US and creating a robust and scalable marketplace app designed to capture this growth.

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Types Of Online Marketplace App Development

No matter how big, complex, or simple an app you are planning to create, make sure you are trying to develop an app that fits your business requirements and enables you to bring the products and services to the market in a better way. Different marketplace types come with unique features, functionalities, and complexities. 

There are a number of factors like resources, time, budget, and expertise of the team depending upon your decision like what type of online marketplace app you prefer developing.

Here are the few major types of online marketplace apps that can consider developing:

1. B2B Marketplaces (Business-To-Business)

B2B marketplace app as a third-party platform and ideal for businesses dealing with selling products or services in bulk. If you’re developing a B2B marketplace app, make sure you hire a React Native app developer in the USA to make it compatible with different platforms and able to integrate features like complex order management, custom pricing, and seamless in-app communication between businesses. The major examples of these marketplace apps are AliExpress, Booking.com, and more.

2. B2C Marketplaces (Business-To-Customers)

B2C marketplace apps directly connect businesses to customers like Etsy and Uber. These apps allow you to buy, sell, and trade products and services directly with one another. To create a B2C app, make sure you collaborate with the right choice of tech partner like Alcax. Being experts in customizing marketplace apps for over 20+ years, we make sure that your product is well-developed and integrated with the right features.

3. C2C Marketplaces (Consumer-To-Consumer)

P2P or C2C marketplace apps are designed to connect individuals to a common platform. These platforms are designed to buy, sell, and trade products and services directly with one another. Popular examples of these apps are Etsy and Uber. You can hire an Android app developer in the USA to launch your first app appearance on the Google Play Store defend upon the user feedback, and scale it to other platforms. 

No matter what type of app model you choose to develop for your business, your ultimate concern is to determine “how much it costs to build a buying and selling platform.

How Much Does It Cost To Build An Online Marketplace App?

So how much does it cost to build a buying and selling app like eBay or Amazon? Surely, you give a number of attempts to estimate the cost of building similar platforms online but the fact is, the exact number is known only to the developers. 

For this reason, we have provided a complete guide focusing on real-life marketplace app development projects that we are managing at Alcax. The simple purpose of explaining this is to have a number of actual references for the project estimation. So that after reading this guide, you will have a roadmap to calculate your project estimation with accuracy. 

Further to set your expectations and ensure that you are on the right track, here we have shared a few points. Firstly, I will talk about the pre-made solutions, but our focus will be on custom development. Secondly, our information is geared towards the US market.

Moreover, if you are new to app development for the marketplace industry, we recommend you to get connected with our experts for a detailed guide to the marketplace development process. 

Now let’s have a look at the rough estimated cost to build an online marketplace app based on project scope:

• The simple marketplace app with basic features of selling and buying products and services of a single type would cost between $12,000 to $15,000+.
• Medium complex projects offering multiple features and providing flexibility to sell and buy a variety of products from different sellers would range between $25,000 to $35,000+. 
• Complex marketplace app developed with all the advanced features and cutting-edge technologies that can transform the user experience. The average cost to build this type of app ranges between $35,000 to $50,000+, depending upon your business requirements. 

These are the rough estimations that we have calculated based on various factors. You can use them as a reference to determine what functionalities you might expect within your budget.

Did you know that 2.14 billion people worldwide shop online?

Eliminate the barriers and expand your business reach to the global market by simply developing a marketplace app with Alcax and providing a seamless shopping experience.

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Main Factors Influencing The Cost Of Building A Buying and Selling Platform

So now you have a rough idea of how much it costs to build an online marketplace app from scratch. But why is there a huge gap and what factors are contributing to these figures?

Here is a complete breakdown of the factors affecting the cost of building a marketplace app:

1. Readymade Solution Vs Custom Marketplace App

The basic factor that can deeply affect the app development cost is your choice between using ready-made solutions and customer marketplace app development services. 

Developing an app using ready-made tools and platforms can make the entire task much faster, cheaper, and easier and would range between $500 to $1000+. However, it limits the scope of customizing features and functionalities that your business needs.

In the case of developing a marketplace app by hiring a Flutter App developer in the USA, customizing elements becomes easier and ensures multi-platform compatibility and may cost between $20,000 to $25,000+. 

Moreover, turning your concept into a fully customized buying and selling platform may require high upfront costs but it can increase the scope of getting successful in the future. 

2. Hourly Rate of Developer

Next that majorly affects the overall cost to create buying and selling apps is the hourly cost of the developer.

Now basically, there are three ways of hiring a mobile app developer:

• In-house app development team
• Freelance Services
• Outsourcing Software Development Company

Among all options, freelancers are the most affordable option but the quality and timeline of the project are not committed. Moreover, communication gaps within the team can lead to blunders.

Hiring an in-house app development team can be costly as there’s a deep screening and employee training process involved in it. Moreover, it involves a monthly salary which will be ranging between $75,000 to $80,000 per developer annually. 

At last, outsourcing a mobile app development company in the USA will provide access to a complete app development team including project manager, backend and frontend developer, UI/UX designer, and app tester. In the USA, you can get the privilege of hiring the app development team on a flexible engagement model based on monthly, fixed, and hourly billing. 

3. Discovery Phase of the Product

This is one of the most crucial steps in marketplace app development that ensures whether your app idea is required in the market or not. For this, you can expect to spend around 60 to 100 hours on simple app development whereas complex app development ideas would require at least 120-150 hours.

During this phase, the team will analyze your marketplace business requirements and validate it with market needs. Next, build complete documentation and detailed estimates on your project. Armed it with a detailed understanding of your expenses. 

Here we recommend you go through our guide to creating a mobile app and its cost estimation so that you can have an idea of the process, risk, and cost it involves. 

4. UI/UX Design

The marketplace apps are comprehensive apps that include multiple features and functionalities which can easily make your customers confused if your app’s interface is not designed smartly. Just take the example of Amazon, you will have hundreds of things on the app screen but nothing makes anything confusing. Products are easily searched, and orders and payments are easily being made through a secure payment process.

Usually, the average time it takes is around 120-150 hours for designing UI/UX apps for simple versions, whereas the complex one takes around 400-500 hours. But at Alcax, we create a design for your marketplace that follows your brand style and business needs. We customize the UI/UX design that leads to better user engagement and makes the overall shopping experience enjoyable.

5. Technology Stack For Marketplace App Development

The choice of technologies will have a big impact on your app’s success. If you have ever noticed, Amazon is based on highly powerful technologies that make an app run like a well-oiled machine. So here are the few technologies that we recommend for marketplace app development:

• Backend Development: Node.js, NestJS, AWS.
• Frontend Development: JavaScript, TypeScript, React, Next.js.
• Tools and Integrations: AWS Services, Docker
• Payment Integration: PayPal, Braintree

Overall these factors majorly affect the final cost estimation of marketplace app development. Rest it also depends upon the features and functionalities. So before you hire an app development company in the USA, make sure you prioritize the features in advance to avoid going over budget. 

Core Features To Create An Online Marketplace App

If you are just starting with an online marketplace app with the lowest budget brackets, then consider developing the Minimum Viable Product with core features. 

• User Registration: Allow users to sign up for apps with minimum details and using an email ID or phone number. Make sure this feature will work differently with sellers and buyers so that both panels will work differently.
• Product Listing: Allow sellers to easily upload, add, edit, manage, and remove the products. Make sure they add products with detailed descriptions, pricing, and images. 
• Advanced Search & Filters: Provide users with the ability to search products or services using various filters like price, product category, occasion, ratings, and more. 
• In-App Chat and Messaging: Facilitate in-app communication features between buyers and sellers for better interactions and negotiations. 
• Secure Payment Gateways: It is an important feature in marketplace apps that allow users to make payments seamlessly using multiple payment methods like payment credit/debit cards, e-wallets, and more. 
• Reviews and Rating System: Allow buyers and sellers to add reviews, ratings, and feedback that promote transparency and trust within the platform. It allows users to trust within the platform. 
• Order Tracking: This allows users to track their purchases or services in real time, from order confirmation to final delivery estimates.
• Push Notifications: Send notifications for sales, new product additions, and more and keep the users engaged.

But as features and functionalities act like a backbone of your app, therefore you can consider adding as much as fits your budget after considering the user feedback. You can consider scaling up with the advanced app features later to avoid the initial financial burden. 

The global online marketplace app is making $7T by 2027!

Tap into this thriving online marketplace industry by partnering with Alcax and developing an online marketplace app tailored to your unique business needs and driving customer engagement and sales.

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Additional Innovative Features To Create a Marketplace Platform

If you’re looking to create a marketplace app as big as Etsy or Amazon and budget is not a big constraint, then here are the few advanced app features that you need to include in the process. They might add up to the final cost and take it around $35,000 to $50,000+, but you can easily get a competitive edge among competitors. 

Feature	Description
AI-Powered Recommendations	Leverage artificial intelligence to provide personalized product or service suggestions based on user behavior.
Advanced Search Filters	Implement robust search capabilities with filters like price, location, ratings, and categories to improve user experience.
In-App Messaging	Enable secure, real-time communication between buyers and sellers to facilitate better transactions and negotiations.
Integrated Payment Gateways	Offer multiple payment options, including credit cards, digital wallets, and cryptocurrencies, for seamless transactions.
User Reviews & Ratings	Allow buyers and sellers to rate each other, building trust and transparency within the marketplace.
Augmented Reality (AR)	Provide users with an immersive experience by allowing them to visualize products in their environment using AR.
Blockchain for Security	Integrate blockchain technology to ensure secure and transparent transactions, particularly for high-value items.
Dynamic Pricing & Discounts	Enable sellers to offer real-time discounts or dynamic pricing based on demand, inventory, or seasonal trends.
Mobile App Integration	Develop a dedicated mobile app with push notifications, location-based services, and a smooth user experience.
Social Media Integration	Allow users to share listings or purchases directly to social media platforms, increasing engagement and reach.
Multi-Language & Multi-Currency	Support global audiences by offering localized language options and multi-currency payment features.
Escrow Payment System	Ensure safe transactions by holding payments in escrow until both buyer and seller meet all agreed terms.
Data Analytics Dashboard	Provide sellers with real-time analytics on sales, customer behavior, and market trends to optimize performance.
Customizable User Profiles	Enable users to create detailed profiles with personalized preferences, buying history, and wishlist management.
Loyalty & Reward Programs	Offer reward systems, points, or discounts to repeat customers to encourage long-term engagement and retention.

Alcax’s Expertise In Developing Online Marketplace App?

If you are looking to create a high-end marketplace app that can stand apart in the market, then collaborating with Alcax can be a worthy decision. At Alcax, we strive to deliver unmatched quality solutions with a tailored approach to address unique business requirements. Our expertise lies in providing scalable, user-friendly apps that are quick to deploy, enhance user engagement, and seamlessly connect buyers and sellers at the common platform. 

Here’s why Alcax can be your trusted app development partner for marketplace app development:

• Delivering 100% bug-free coding
• Custom solutions integrated with unique features
• Full-cycle development from start to finish
• Access to the development team
• Using top-notch technologies to deliver excellent quality
• easy team onboarding within 48 hours
• Signing NDA and following other security measures.

Conclusion

Hopefully, this blog guide gave you an idea about how the ecommerce industry is growing with no possibility of slowing down. With billions of monthly active users, a marketplace is a great way to start trading from scratch and test the water of new markets without spending too much money. From bootstrappers to leading retailers, this is one of the most fascinating models that can be started quickly. All you have to do is hire mobile app development company in the USA, who can understand the local market needs, integrate the right set of features, make a user-friendly interface, and ensure secure payment tools. 

If you are all set with your requirements and are trying to decode the actual cost to build an online marketplace app for your business, then it is recommended to book our free 15-minute consultation slot. Our experts will deeply evaluate your requirements and provide actual cost estimations and solutions that align with your requirements. For more details, you can drop a query below or contact us!

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Here we have gathered additional information related to online marketplace app development services to help you make informed decisions about developing a buying and selling platform.