Cost To Create An E-commerce App: Its Features, Process And Monetization Model

Looking to create an e-commerce mobile app for your business to drive better growth, how much does it cost to create an e-commerce app? 

The average cost to build an ecommerce app ranges from $20,000 to $35,000+ or it can go beyond $50,000+ for the ecommerce app integrated with complex functionalities. Other multiple aspects further affect the mobile app development cost. 

No matter how expensive it will be to invest in ecommerce mobile app development solutions, ultimately it will ensure your growth in the future.

Over the years, ecommerce has become an indispensable part of the global retail industry where buyers and sellers have undergone a substantial transformation. 

With each passing year, the number of users making online purchases has been rapidly increasing and has reached around 5 billion. 

Moreover, in 2024, retail e-commerce sales are estimated to exceed $4.1 trillion worldwide and this figure is expected to grow at 9.60% in the coming five years. 

Ecommerce mobile applications are quickly reshaping the ecommerce landscape. And while we are talking about ecommerce applications, Amazon, eBay, Walmart, and AliExpress are leading the domain. 

These leading ecommerce platforms are contributing to the major ecommerce market share and are expected to make jaw-dropping sales growth of around $8.1 trillion by 2026. In addition, the continuous growth indicates that e-commerce applications are here to stay in the market. And developing an ecommerce app is a way to stay on the top in the online retail industry. 

Looking to create an ecommerce app for your business that ensures your success? Alcax enables you to hire mobile app developers, who help you build an app from scratch or update the existing one to drive success. Let’s connect now!

Why Develop A Mobile App For Your E-commerce Business?

With 5 billion online shopping users, it’s already clear that mobile commerce is the future. People love scrolling through products and shopping through mobile apps in their free time. 

If you want to make your brand available on their mobile screen, then it’s important to have an app for your store and stay ahead in the market. Apart, here are a few reasons you need to hire an app developer to customize the commerce app for your business:

Deliver Better User Experience: A well-planned mobile shopping app is far easier to approach and navigate than browsing ecommerce websites or visiting any traditional store. 

Improve Brand Visibility: Your online business can reach a wider customer base of mobile phone users through mobile apps.

Build Customer Trust: Did you know that 60% of customers check products online before they make a final purchase? Offering a facility to make online purchases can build customer trust and make your brand more reliable.

Increase Marketing And Sales: Utilizing features like push notifications, and personalized recommendation, you can 10x your online sales and be able to improve your marketing strategies. 

Access To More Data: Through mobile shopping apps, you can have access to rich data that can be used for better customer targeting.

Getting an e-commerce mobile app developed for your brand is a challenging decision, so if you are still doubting whether to hire an app developer to build an e-commerce app, then consider these key stats and facts about the industry…

85% of customers prefer shopping online through apps!

Increase your business conversion rate by hiring mobile app developers with Alcax and drive sales with seamless ecommerce apps integrated with high-end features.

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Global E-commerce Market Stats: Understanding The Scope of Ecommerce Platform

Unlike traditional retail businesses, ecommerce online stores can ensure various advantages and help you get customers worldwide. But before you make any final decision, here are some current trends in the ecommerce industry with stats that help you build a perfect strategy:

• Ecommerce is expected to generate $8.1 trillion in sales globally by 2027. 

• In the US, retail e-commerce revenue is expected to reach $1.3 trillion in 2028. 

• People are aggressively turning to online shopping platforms and it is expected that the number of online users will be 284.6 million by 2025.

Source: smscountry

• Amazon is one of the most popular platforms for product search and 79% of consumers use it to search products. 

• According to Statista, by 2025, M-commerce sales in the US will account for more than 10% of retail sales. 

• The market size for m-commerce is expected to grow from $420.2 billion in 2023 to $17,00 billion by 2028. 

With these stats and facts, it is fair enough to perceive that the ecommerce mobile app industry is rapidly growing and has a bright future. So whether you are planning to venture into the ecommerce industry with a full-feature loaded app, then you need to hire an Android app developer to build an app supporting all Android devices. 

What Services Has Been Provided By E-Commerce Mobile App?

If you have finally decided to build a custom ecommerce app but are not sure what services it will offer to your business, then consider a brief overview of the services that the ecommerce app provides:

• Multiple-Product Categories: Ecommerce apps can provide a platform to users whether they can browse a large collection of products/services of different brands to the shopping enthusiast. 

• Home Delivery Option: The app ensures that the products purchased through an app will be delivered at your home. And for this, ecommerce apps are partnered with logistic service providers to provide hassle-free logistic services. 

• Multiple-Payment Gateways: Ecommerce mobile apps like Amazon, eBay, and Walmart provide their users a complexity to make payments through multiple payment options including credit/debit cards, e-wallets, and more. 

• Seamless Returns: Allow customers to easily return the products if they are not satisfied with the quality or product. 

• Real-Time Order Tracking: Ecommerce apps provide the flexibility to track orders and monitor the status of their purchases from the moment they place an order to the time of its final delivery. 

• Personalized Recommendation: Did you know Amazon has a 40% increase in their business sales by integrating AI-powered algorithms? With these algorithms, ecommerce apps can analyze user behavior and browsing history to offer personalized product recommendations. 

These are the few major key highlights of the leading ecommerce apps like Amazon, Walmart, and more, which enable them to attract more customers and keep them engaged longer on the app. 

How Much Does It Cost To Create an E-commerce App Like Amazon?

So how much does it cost to build an ecommerce mobile app? If you are also struggling with this question, then you have landed at the right place!

The ecommerce mobile app development cost typically ranges between $12,000 to $20,000 and can go to $50,000+ for the advanced app version. However, the cost of an ecommerce app development can go up and down depending upon such factors including the complexity of the app, number of features and functionalities, platform support, design, developer’s location, and ongoing support of the app. 

Different apps have different requirements, therefore no single app that can fit all requirements. Thus there is no single price for all apps.

If you evaluating various factors that can impact the overall app development cost, then here you can categorize into three levels:

1. Basic Mobile Apps

The app developed with basic and simple features with no complex backend requirements, can cost between $12,000 to $15,000+ and may take around 3 to 5 months for development.

2. Moderate Mobile Apps

If the ecommerce app offers a decent range of products and handles an average range of customer base then your mid-level app should be considered which includes all the essential features and may cost between $20,000 to $25,000+. The average timeline to create this type of app would range between 5 to 9 months.

3. Advanced App Version

This would be proper enterprise-grade apps, covering a wide range of products and handling a large customer base. These are a comprehensive set of applications that manage large inventory, and multiple sales channels, and support unlimited product categories. Moreover, this app version can be further integrated with ERP and CRMs to provide complete control over ecommerce stores. Usually, you can expect to spend anywhere from $35,000 to $50,000+.

These rough estimations can greatly fluctuate depending on your business requirements. If you are ready with your requirements, then it is worth booking a free 15-minute slot with our mobile app development experts to evaluate your requirements and get accurate estimations. 

ecommerce market is expected to reach $6.3 trillion by 2024!

With over 2.14 billion people expected to shop online, having a robust mobile app is essential to stay competitive. Alcax can help you develop a feature-rich app that helps accelerate sales.

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Best Monetizing Strategies For Ecommerce Mobile App

Regardless of what you are spending on the ecommerce app development, your ultimate goal is to make money from the app and get user conversions. Though there are several ways to make money from the ecommerce app, let’s understand the monetization model of Amazon, Walmart, and eBay and learn how they make money from the app…

1. Amazon’s Monetization Strategy

• Product Sales: This is one of the simple and direct ways of generating revenue from the portal. However, as Amazon allows third-party sellers to list their products on its marketplace, therefore, it earns 6 to 45% of the commission on the product categories. 

• Subscription Fees: The major chunk of revenue is generated from the subscription plan which provides access to 24-hour delivery and premium services. 

• Logistics and Storage Fees: Amazon provides this service to their sellers and charges fees for product storage, packing, shipping, and product handling.

• Advertising: Another major category of generating revenue is charging costs from third-party businesses for displaying ads on their screen.

2. eBay’s Monetization Model

• Listing Fees: eBay is such a huge ecommerce platform that sellers have to pay fees to lose their products on eBay. The fee structure may vary based on the product category and type of listing.

• Subscription Plans: eBay offers subscription plans to sellers from basic to premium with the benefits of reduced service fees, more listing options, advanced analytics, and more.

• Global Shipping: This makes eBay a global ecommerce brand where sellers can opt for eBay’s global shipping program with simplified international shipping. eBay handles the logistics and sellers pay additional fees for the services. 

This is how these leading ecommerce brands are making money through their ecommerce stores. Get inspired by these monetizing strategies and let our developers help you customize the most suitable monetization strategy for your ecommerce business. 

Must-Have Features To Develop An Ecommerce Mobile App

The app’s success is majorly dependent upon the choice of features and functionalities you prioritize in the app. So to create an ecommerce app like Amazon, you need to make three panels including a user, admin, and delivery panel. Each panel is customized with specific features to make an app work smoothly. 

1. User Panel (Including Customer-Facing Features)

• User Registration: Ensure an easy signup process with the options and allow them to get registered using email, phone number, and social media account with a two-factor authentication process. 
• Product Search and Filters: Provide a search box with auto-suggestions and advanced filters to easily filter the products by category, price, quality, ratings, and brands.
• Product Listings and Categories: Categorize the products with detailed descriptions and multiple images, user feedback, and ratings. 
• Shopping Cart: Let users experience the seamless shopping pleasure by simply adding products to their cart, updating it, removing it applying discount codes, and letting them proceed to the checkout process. 
• Multiple Payment Methods: Allow users to make payments using multiple payment options including credit/debit cards, e-wallets, COD, and more. 
• Order Tracking: Let users track their order’s real-time location of their product and get an estimated idea of time like when it is going to be delivered. 
• Push Notifications: Keep your users engaged with an app by offering timely notifications for new deals, discounts, updates, and order status. Also if using this feature smartly, then you can significantly enhance your business sales. 
• User Review and Ratings: There is a feature in the app that allows users to leave reviews and ratings about the product based on their shopping experience. 
• Wishlist: Provide a feature to add products to the Wishlist for future reference that they wish to buy.
• Easy Return and Refunds: Ensure a simple return process and allow users to initiate product returns or exchange them directly from the app without any doubt of refunds. Make sure you have a clear product exchange and refund policy in-app.
• Loyalty Programs and Discounts: Reward users with loyalty points that can redeemed as a discount during the checkout process. 
• Customer Support: Provide in-app chat support and help center with FAQs, along with the option to contact customer service via phone and email.
• Multi–Language Support: If you are targeting global users, then make sure your app supports multiple languages and allows users to access the app in their preferred language.
• Secure Checkout Process: Offer a fast and secure checkout process experience with an encrypted payment process.

2. Delivery Panel (Including Delivery-Facing Features)

• Delivery Agent Registration: Provide a simple and easy login process to the drivers to get registered on the app using the same credentials provided by the admin.
• Order Assignment: Have a feature in the app that automatically assigns the delivery task to agents based on location, availability, and route optimization for faster deliveries.
• Order Details: Provide complete information about the assigned orders, including customer name, contact details, delivery address, and product specifications.
• Real–time Navigations: Integrate GPS Navigation to guide delivery agents about the customer’s location using the most efficient routes.
• Delivery Status Update: Allow delivery agents to market the delivery status within real-time such as picked up, on the way, and delivered for accurate product tracking.
• Proof of Delivery: Have a feature in the app where drivers can capture a picture of the delivered product with digital signatures, photos, and QR code scans to confirm successful deliveries.
• Route Optimization: Provide optimized routes for multiple deliveries to minimize time and fuel consumption, ensuring quicker deliveries.
• Ratings and Reviews: Allow users to give ratings and reviews to the drivers for their quality services.
• Delivery History: Allow delivery partners to view past delivery history including details of completed and pending deliveries for future reference.

3. Admin Panel (Including Admin-Facing Features)

• Dashboard Overview: Provide a centralized dashboard overview where admin can view all the details of ongoing activities including total sales, active users, orders, scheduled deliveries, revenues, and more.
• User Management: Let the admin view, edit, and manage the customer profiles and be able to overview their order history, and account status, and accordingly support inquiries.
• Delivery Agent Management: Have a feature in the app that allows the admin to track the delivery agent’s availability, performance, and assignments.
• Product Management: It’s under admin control that easily adds new products, edits the existing listings, and removes the products that are discontinued.
• Inventory Management: Though enterprise-grade ecommerce apps are integrated with inventory management systems that constantly monitor stock levels admin receives the alerts when inventory is low for efficient restocking.
• Order Management: The admin can track all the customer orders and be able to modify and cancel them based on special requests or availability issues. 
• Payment Management: Have a feature in the app that allows the admin to track all the payment transactions through multiple payment gateways to maintain transparency.
• Delivery Management: From assigning delivery tasks to route optimization to tracking deliveries, the admin should have full control over it.
• Promotions and Discount Management: Admin can create coupons and discounts to boost sales during special occasions. 
• Analytics and Reporting: Provide detailed insights into sales trends, top-performing products, customer purchasing behavior, and more. In addition, generate reports on daily, weekly, or monthly revenue, expenses, and profit margins to have a clear picture of business.

Turning your business to mobile app can 10x your sales!

72.9% of retail sales are expected to come from mobile apps by 2025. Let Alcax boost your business sales with a custom ecommerce app and enable you to become a part of industry growth.

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Conclusion

Hopefully, with the end of this blog, it’s clear that the ecommerce industry is booming, and building an ecommerce app for your business can help you extend your reach and acquire more customers. But how much does it cost to create an ecommerce app? The cost of producing an app varies based on the type of app you desire for your business, the features and functionalities you prioritize integrating into the app, and the app development team you desire to work with.

No matter how much exactly it costs to create an online shopping app, it surely brings ultimate returns to your business in the future. All you have to do is hire a mobile app development company that combines the right planning, and app development strategy along with the latest ecommerce trends and technologies to drive success.

If you are all set with your requirements or require any assistance understanding what type of ecommerce app you will require for your business, then contact us or drop a query below!

FAQs

If you still have doubts about getting started with an ecommerce app, then you can consider these frequently asked questions and answers to further get more clarity.