Marketplace App Development Cost : Decoding the Insights

If you have heard of apps like eBay and Craigslist, you are familiar with the basic functioning of a marketplace app. A marketplace app is an online version of a physical marketplace where different vendors sell and there are buyers coming in from several regions. There are two types of users for the app: dealers and clients. We shall talk about it later. First, the basics:

What are marketplace apps?

The marketplace app can be a web app, a desktop app, or a mobile app based on the business owner’s preference. Marketplace apps are typically software solutions or tools used by merchants to create accounts, make a list of products in a product catalog, and accept orders from customers through the catalog. The app is also used to keep a check on the inventory of the products that they are selling, use the API of a payment processor to process payments for goods sold to customers and receive reviews from customers after delivering goods.

The app is typically used by customers to view merchant offerings within a particular interest category (such as home appliances), browse merchant sales and discounts on those offerings within that category, make purchases from merchants using supported payment methods (such as PayPal), and leave reviews for sellers once they have received their delivered items.

How much does it cost to build a marketplace app?

If you’re someone who’s thinking of building yourself a business in this sector, this is the perfect time for you to hire an eCommerce development company. You can opt to build an MVP of the marketplace app, which help with a cost-efficient product initially and based on the response you receive you can make the required changes in the next iteration.

The cost to build a marketplace app can be as low as $20,000 or as high as $100,000 and even more. There can be variations to this cost, let’s understand how the marketplace app development cost range can be bifurcated based on the complexity in terms of features, functionalities and technology:

• Simple app: A simple marketplace app development cost ranges from $20,000-$40,000.
• Medium app: A medium complexity marketplace app development cost will range from $40,000-$60,000.
• Advanced app: The cost to build a marketplace app with advanced features ranges from $60,000-$100,000 or more.

Types and costs of marketplace apps

Whenever one thinks of venturing into marketplace business using a mobile app, there are several questions that they are required to answer with regard to the type of app and business model they are about to choose.

A marketplace app is not just any other app where you put up some goods or services and your customers pick up their likings and pay for it. In a marketplace app, there is a provision for both buyers and sellers. So, considering that scenario, one needs to hire marketplace app developers who can guide them about the types of apps and their revenue model. Here’s a brief bifurcation on the different types of marketplace apps:

By participants:

• B2B: here, the marketplace is responsible for selling goods and services in bulk and the operation is mainly third-party. For example, Alibaba.
• B2C: here, the businesses sell directly to the customers with the help of the app. For example, AliExpress.
• C2C: this one is for customers to meet fellow customers who buy products or services in exchange for products or services. For example, Etsy

Based on the business model

• Vertical marketplaces: These marketplaces are centered around specialty items and administrations as opposed to offering everything to everybody. Being committed to a particular class, you experience less contest, work on the nature of items and administrations, and give better personalization.
• Horizontal marketplaces: These types of marketplaces offer products from various categories to various customers. They provide a one-stop shop that meets a variety of customer requirements. The primary benefit of an even commercial center is its wide crowd which drives more exchanges.
• Global marketplaces: The trading of goods and services across borders is made possible by global marketplaces. The greatest audience and revenue potential exist in a global marketplace.

The cost to develop a B2C marketplace app with basic features can be deduced based on various factors that affect the development. These range from design and project analysis to all sorts of backend and frontend developments. Depending on these and many other factors, a basic B2C marketplace app development cost can range from $30,000 to $60,000.

Cost based on clone vs fresh from scratch

Mobile app development cost involves the cost of planning and blueprinting the project, designing, and developing. Now, there are two major categories that affect the overall costs of the product –

• Clone app development: the app development company uses the previous code of a successful application from their portfolio or takes a famous app’s reference and builds the app as a whitelable solution. Here the level of customization that can be catered is limited.
• Marketplace app development from scratch: the mobile app development company builds the product from scratch with nothing used readymade. Here, each and every aspects used in the development is build from scratch for better customization.

Let’s understand the complete clone app development scenario with the example of TaskRabbit-like app development requirement.

TaskRabbit Clone app development cost

Many young entrepreneurs prefer going for clone app development to save costs as it makes a big difference. The steps to build an app are significantly brought down for the clone app. The app development agency, responsible for marketplace app development, would use the ready to use designs and codes to build the app or it will take a famous application’s reference to build a similar white-label solution for the client.

For instance, a TaskRabbit clone marketplace app development cost would be lesser as compared to an app built from scratch. It is because the mobile app developers will have a clear idea and probably the ready to use codes and designs from the previous TaskRabbit-like apps they have developed.

Build an app from scratch

Some businesspersons prefer building a marketplace app from scratch as per their choices and facilities. They can customize it the way they want and therefore the cost will be a bit higher as compared to the TaskRabbit app development cost estimation they get from their tech partner because mobile app developers will have to start from wireframe to building prototypes and deploy it according to specific platform or network.

Look at how the costs differ if you’re building a marketplace app from scratch and the TaskRabbit clone app development cost.

• TaskRabbit clone app development costs start from $10000 with some basic features
• The cost to make a Custom marketplace app from scratch starts from $20000 with only the most important features.

How long does it take to build a marketplace app?

Now that we have extensively talked about the costs of building a marketplace app, another factor that might be crucial for you as a business owner is the time taken to build the app in its entirety.

Developing a mobile application takes up a lot of work in the comprehension of the business model, the features that need to go into the app in terms of both the seller and the buyer, the tech stack used, UI/UX, and a lot more. These things need time to take shape and thus, time is a significant aspect of marketplace app development. Here what matters is hiring a leading company to develop a mobile app.

Typically, a marketplace app can take up nearly 422 hours of the developer’s time to come into shape. But, since we talk of the variations of the app, it is imperative to mention these variations in time as well. The app can be successfully built in as low as 267 hours and can go as high as 667 hours based on the complexity, type, and business model of the app.

Closing Thoughts on Marketplace App Development Cost

Marketplace apps unite sellers and buyers from different regions and let them trade and do business over products and services, all in one place. Marketplace apps are a great way to connect with people selling goods or services from far away and vice versa.

Marketplace apps would be seen as being preferred over regular eCommerce apps because they let the buyers and sellers connect with each other. It is a great time to invest your time and money in building a marketplace app at this point in time. The eCommerce app development cost especially built for marketplace apps in its variations has been extensively discussed above as a complete guide.

Mitesh Gosai

He loves challenges and adept at finding tech-solutions that complement business ideas. Working in the capacity of Project Manager at Prismetric he strives to leave no chance for glitches in his implementation. He incorporates his extensive experience in his writings about new gadgets, tech stories, updates and innovations in technology, management tips, and inspiring app technology related information.