Marketplace App Development Cost | Developing, Launching, and Maintaining Cost
December 27, 2022
Statistics reveal that around 2.05 billion people used marketplaces across the world in 2020. On top of that, the effect of pandemic led to people saying that they would prefer accessing the marketplace via an application.
Marketplaces came into the spotlight after a few of them, like Etsy, Amazon, or eBay, became popular. Being one of the most nascent industries, there is no doubt why entrepreneurs are talking about marketplace app development cost.
You will find a plethora of applications belonging to the same category, but this blog will analyze the cost of developing marketplace apps and everything that creates a loop around the cost.
Types Of Marketplaces
Let us first see the types of marketplaces before we jump into the marketplace app development cost.
Classification Based On Business Model
1. Vertical Marketplaces
Vertical marketplaces are exclusive suppliers that offer specific goods and involve working with multiple expert sellers. Airbnb is the classic example of a vertical marketplace that deals in short-term rental options.
2. Horizontal Marketplaces
Horizontal marketplaces offer goods and services in several categories, but all share a single common characteristic. Etsy is famous for selling handmade goods in eight categories.
3. Global Marketplaces
Global marketplaces provide a wide range of goods, including books, furniture, apparel, toys, software, appliances, and more. These marketplaces consolidate multiple market segments to serve a broader consumer base. It focuses on the customers who look for the fastest delivery at the lowest price. The best example of a global marketplace is Amazon,from where consumers can buy anything.
Classification Based On Participants
1. B2B Marketplaces
B2B marketplaces sell goods and services from one business system to another while connecting multiple sellers with buyers. Alibaba is one of the most popular B2B marketplaces.
2. B2C Marketplaces
B2C involves the process of selling products or services between businesses and customers directly. These rely more on the brand’s emotional response rather than on the product’s actual value. Bonanza is one of the leading eCommerce platforms.
3. P2P Marketplaces
P2P marketplaces are the mediators between buyers and sellers. Users can share their products and services on the platform. The most sophisticated example of this model is Uber.
Features That Determine Marketplace App Development Cost
We cannot deny that marketplace app development cost cannot be estimated unless and until we know the set of features required to be integrated. Find out the below-listed features that affect the app cost calculator.
It seems easy to design a registration page, but not every marketplace is good at creating it. Nevertheless, the availability of options like social media sign up makes it convenient for businesses to prevent troubling users. In simpler words, businesses can use this option and allow users to enter the app with a few clicks.
The point that needs attention here is that integrating this option will directly impact marketplace app development cost. This will save the users from getting irked while they are accessing your platform.
2. Payment Options
In this modern era, not all customers share the same choice for payment options. Therefore, it is highly imperative to integrate multiple payment options besides the credit/debit and cash on delivery options. Users will, in return, feel more empowered to make a choice and make payments conveniently.
3. Push Notifications
Keeping users hooked onto your marketplace is a significant challenge. You can time it right by applying the most competent push notification strategies. If you desire to have push notifications in place, you need to invest in getting a smart push notification system developed.
4. Social Media Integration
eCommerce and social media integration share a close bond. This feature does not restrict itself to just logging into the app but also spreads to marketing processes. Customers can promote their buy and share referral coupons and discounts to their network, which will then enter an extended network and in the whole social media domain.
Modern customers are savvy and do not make instant purchase decisions. Add to cart option lets them save the products for future buying. If a platform lacks this option, it may lose customers because they would not be able to find an option that will give them a reason to come back to the app.
6. Ratings & Reviews
The feature that lets users rate and review the services they have availed makes them feel valued. You can integrate it into your solution. Additionally, you can get in touch with an IT consultant in New York to know the estimate on marketplace app development cost.
How Much Does It Cost To Develop A Marketplace App?
Marketplace app development cost is broken down into three stages- Wireframing, Designing, and Development.
Wireframing is a process where the rough template of the mobile app is created to get an idea of how the app would turn out.
Designing involves paying attention to the versatility and flexibility, due to which the users will love it.
The coding of ideas into a fully functional app refers to the development process. The marketplace app development process depends on the number of resources allocated and the functionalities required to be integrated into it.
Mistakes That Can Increase The Overall Marketplace App Development Cost
While there is considerable growth in the development of online marketplaces, there are statistics that show a reduction in their usage. The reasons may be multiple, but the major ones are the mistakes that business owners tend to commit during the development stage. We would not like you to walk down this path and face a financial crisis. Read through to prevent yourself from falling into the pit.
Not Doing Deep Market Research
Just having a great idea would not help you because the process of marketplace app development requires enormous investments. To make the process smooth, it is imperative to test the market in advance, conduct surveys, and narrow down the target audience. You can then acquire more customers and maximize customer retention by deterring uninstalls too.
Underestimating The Total Budget
Make sure you have a detailed idea of the marketplace app development cost, including the development hours, overheads, material, space, marketing, operation team, and other key aspects. Estimating the overall budget would make the whole process smooth and error-free.
Ignoring The Importance Of MVP
Minimum Viable Product (MVP) lets you test your app amidst the customers in the market. By creating an MVP that consists of only the essential features, you can evaluate the platform’s performance and save a lot of time and money. Besides, you can obtain feedback from the customers before releasing the app’s final version in the market.
Overcrowding Of Features
If you think that your users would love to see too many features, you need to revisit your concept and change it accordingly. The presence of multiple features in your platform will slow down its load time, which can irk the users. Instead, you should focus on the most critical features and try integrating them smoothly. This will keep the users comfortable while using the platform.
Paying attention to your app’s functioning is highly important so that you introduce a bug-free platform to your audience. Most importantly, you must test the platform before launching to check its strength to face competition.
No online marketplace can be successful unless you do not pay heed to updates. To attain more customers and retain the existing ones, you ought to make improvements as and when required. The more you introduce new features, the better it is.
Tip: Keep updating your platform proactively.
Copying Other Platforms
Marketplace app development cost involves an investment that will generate profits for a lifetime. On that account, you must act cautiously while designing it and prefer not to copy its layout from other platforms.
While you can certainly take inspiration from other online marketplaces, make sure to research and look for elements that will set you apart from others.
Consequently, your users will begin loving your app for its features and unique ideas behind it.
Design is not only how a platform looks but how it functions. And the way your platform works can make a huge difference.
Tip: Focus on an exemplary user interface (functions & features) and user experience (design & simplicity).
There must be a systematic flow of information and must not include irrelevant data. At the same time, users should be able to navigate the app and access features without any hindrances. This will make the users more confident about using the platform and get what they are seeking.
Lack Of Interactive Graphics
Graphics are a way to convey your message to the audience. Nevertheless, when you ignore the importance of interactive graphics, you are making the conditions unsuitable for your platform to taste success. Plan to include graphics in your online marketplace platform that are attractive enough to catch users’ attention and continue using it in the future.
Lack Of Coordination Between Development & Marketing
You can never justify the marketplace app development cost that you incur if you miss to coordinate development with marketing. Coordinate the marketplace app development process with your marketing strategy so that you begin reaping benefits at the earliest.
Partnering With The Wrong Development Team
Permitting a development team to spoil your idea can cost you heavily. To save yourselves from entering the market with an ill-suited platform, look for a professional, credible, and reliable development team. Factors that you need to look for while looking for the most suitable firm are the expertise, portfolio, and skill set of the developers.
Building an online marketplace is not different from building other websites. Nevertheless, the marketplace app development cost can be more than other websites because of the advanced features that need to be integrated into it.
One crucial aspect to make it successful is the choice of a mobile app development company in NYC. This way, you can continually optimize the cost of building a marketplace as you partner with credible, reliable, and trustworthy partners possessing excellent portfolios.
Our team of experts will be more than glad to develop an online marketplace for you. Get in touch with us whenever your schedule allows you, and we will discuss your idea along and give you an idea about the marketplace app development cost.