If you are new to marketplace development, you may want to know: how much does it cost to build a marketplace app or website?
We have prepared a thorough guide on how to create an online marketplace, including such aspects as required features, technology stack, and cost. Also, we included important information on marketplace website classification and how they work.
How would I start an e-commerce marketplace?
Now you have some guidance about the type of online marketplace and how the works. Let’s understand some steps to start and launch your own b2b/b2c marketplace for your industry. In this guideline, I mentioned the main steps while launching a marketplace:
The Marketplace app Idea– Find out the idea which works best for you and your customers
Co-thinkers/co-founders– Find the best Partner who is either a technical or sales/marketing expert
Detailed business plan– Create a Detailed business plan and start implementing
Pitch Document– Meet with the MBA’s & Experts on Upwork to create a pitch document for funding
Tech team– Choose the Best App development company to develop your own app
Wireframe– Ask Your technology partner to build an awesome mockup and wireframe for your e-commerce marketplace
Funding– Connect with investors, but First Choose your Family, friends to Funding & Investment
Development phase– Create Complete RFP & SOW before you start developing a marketplace for B2B, B2C, P2P
Beta Testing– Around your circle Start testing your product first before going on Final testing
The Launch –Create the latest marketing plan to launch your e-commerce marketplace
Marketing– Select the Best Digital Marketing consultants or Famous marketing agency to viral your platform
What do I need to build an online marketplace and how much will it cost me?
To evaluate the final price for building an online marketplace, you need to take into account many factors that form the marketplace development cost & expenses. Namely, the App development cost and estimation depend on the What type of solution you choose to start your on-demand marketplace.
Let’s take a look at the core e-commerce marketplace development elements you should take into account and how much does it cost to you.
Marketplace App development
First of all, you need to define the Development platform and you want a ready-made marketplace solution, or you want to develop a marketplace from scratch for creating a successful online marketplace. There are several powerful solutions you can choose from:
Ready-made Marketplace solution
Custom Marketplace development
Most commonly, the first option is for the startups who have a low-cost budget and a fixed price, but provides limitations in scalability and may include unnecessary features you will never use.
In Eastern European countries and Asian countries, the mobile app development cost is less expensive compare to USA, UK & Canadian Regain… For example, if you decide to turn to Best Indian, Ukrainian software development companies, the cost to build an online marketplace on average would be $25-49 per hour.
And of course, the cost of marketplace development depends on the functionality you want to implement.
I recommend you to pay attention to the following features as they are of prior importance for an e-commerce website and mobile app.
Authorization and roles
The must-have features for the admin panel include:
Real-time updates from a single dashboard
User management solutions
Options for charging a commission
Analytics and Reports
Stock visibility and management
Itemizing by Category
The must-have features for seller panel include:
Social Connect and Sign-up Login
Display of vendor-specific store URLs
Order management solutions
Offers, promotions and discounts
In-app chat system
Reports and analytics
Must Require Buyer Panel features:
Management of personal profile
Client support for connecting with sellers
Search engine for easy search
Reviews and testimonials
Integrated payment functionality
Tracking of customer order
What are the Technology Stacks to build an ecommerce marketplace?
Programming languages: Java, PHP, Ruby
Mobile app development: iOS – Swift, Android – Java, Kotlin, cross-platform – React Native
Front-end: Angular, ReactJS, HTML5, CSS
Payments: Stripe, Braintree, and PayPal
Recommendations: Machine learning algorithms
Analytics: Google Analytics
Marketing Automation: HubSpot, MailChimp (for e-mails)
Infrastructure: Amazon Web Services
Databases: PostgreSQL, MySQL, MongoDB.
How much Does it Cost to Build an Online Marketplace?
The cost of your marketplace may vary from one marketplace to the other. It depends upon the functional set that the creator of the marketplace chooses. The proper development of an online marketplace requires the efforts of various specialists and includes UX and UI design, layout design, project management, backend and frontend development, and quality assurance.
On average, the cost to build an online marketplace website can vary from $10000 to $25,000, which may vary based on the design and features available. However, it’s not possible to estimate the cost of the website without any project details.
The process of developing a basic functioning website can usually add up to 800-1000 hours and the process can last for an average of 3 months. Due to this, the estimated cost of the marketplace development of a basic functional set can cost you around $10K.
However, if you decide to create a complex solution or in simple words add some new or different functions to the existing site, you need to be ready to bear some extra expenses, for instance, 20-30 work hours for the e-commerce development of new functionality will increase your expenditure. A marketplace with a vast set of functionalities may amount up to $25K.
The development of a mobile app on average takes about 400 hours and might cost around $25K. The figures are likely to vary depending upon the functionalities that you ask for.
Depending upon the method of developing your use, you can be charged on an hourly basis which can range from $25 to $60 on an average.