Price to Build a Marketplace App
What is a Marketplace?
Before jumping on to the features, costs, and things associated with a marketplace app, it is essential to learn what a marketplace is. Marketplaces basically refer to online marketplaces that connect buyers and sellers without the need for physical retail stores. This is because running businesses online only requires descriptions and photos of the goods or products being sold.
The concept of online facilitation has grown over time, especially in these challenging times with the existence of the devastating coronavirus pandemic, the need for online business and trade has seen a dramatic increase. Following the standard operating procedures, businesses have been adversely affected by the disrupted movement of humans in order to avail services from providers or buy their products. The stagnation in business functionality has led to major financial crises among people which is why entrepreneurs are now rapidly switching to building apps in the marketplace app platform.
It is perhaps a very incipient industry to consider expanding the business in, as it has proved to drive more customers to the services and products than any other media has before. This opportunity has enabled countless businesses to build their brand image and consequently increase revenues by a huge margin.
Another reason why businesses are jumping onto the bandwagon of the new trade idea is that there are tons of examples that have vamped up their sales through online media. In 2017, the sales through online markets were estimated to be $2.3 billion. While by the end of 2021, it is expected to reach a figure of $4.5 trillion, almost doubling in a span of only 4 years. It is indeed a considerable change.
Why do we need a Marketplace?
Building a marketplace platform is quite a complex procedure. There are tons of things that need to be considered alongside the costs associated with marketplace development. However, the main focus remains on developing marketplace apps and not the platforms. Because entrepreneurs who are basically new with their businesses would need an already existing platform to establish their grounds.
A major reason why marketplaces are demanded is due to the benefits they bring along for the sellers as well as the buyers. It’s a win-win situation for both entities. First and foremost is that marketplaces provide an additional advertising and marketing channel for the goods and services. Most importantly the marketplace platform app costs, particularly marketing expenses, are marginally reduced as you do not need huge roadside billboards and street banners to publicize the goods. Moreover, international sales are also seeing an upward trend of the businesses that have developed their own applications to facilitate their consumers.
Even though most entrepreneurs have only planned to run their businesses online in light of the advantages linked to it, the established companies that are already operating physically are also considering the opportunity. Convenience is the topmost priority for every individual and so, this medium helps in experiencing the best version of it.
Obtaining independent ratings and reviews on products attracts more users and makes it more authentic. This in turn creates client loyalty which is essential for a business’s growth. Lastly, marketplace platforms allow companies and entities to operate round the clock which increases chances of sale and to reach out to potential partners and investors.
Among the most successful marketplace platforms are Amazon and eBay. The development of bespoke marketplace applications is becoming a significant part of the revolutionary digital era.
What is a Marketplace App?
After understanding the marketplace, we can now move on to understanding the marketplace apps. A marketplace app is actually what creates a bridge for consumers and sellers to connect. There are myriad online applications that have made the process of buying and selling extremely convenient, ultimately enhancing the consumer experience. In most cases, the apps can be accessed from all devices that have an internet connection. All sorts of business activities can be facilitated including renting, selling, exchanging, buying and even job searches have now been aided with these applications.
The Key Features of Marketplace Apps
Marketplace app development in the online market has two major components; a panel for administration and a platform for the user. The main purpose of the administration panel is to regulate payments, customer orders, product inventory, and other related features. It is part of the backend services and so, is completely hidden from the users. The platform, however, can include a single dashboard or multiple for a variety of different functions.
The specifications of the apps include the following:
- Registration and Login Process– a simple yet necessary procedure to store customer information and activities on the application. Registration for the services enables users to benefit from the services available on the app and also proceed with buying the products offered.
- Account Section– It is the user interface that allows customers to view their purchase history as well as see their current orders on pending. They can also find out whether any payment is due.
- Shopping Cart– A feature to save people from wastage of time on basic functions. The details of costs, delivery and payment methods must be easily accessible.
- Search Option– Among the most important features is the search option which allows user to conveniently look for items/products or services they want to avail.
- List of Products-The list of products is an essential feature to display the products and their details and also enlist the ones on special discount to grab interest.
- Help– Since there is no human contact in e-commerce and application is the intermediary between buyer and seller, a help feature is extremely necessary in order to address possible customer queries. Apart from that it can also help in encountering any real time customer issues in case they have trouble understanding the functions.
- Security– When operating with transactions and payments, it is important to keep your customers in confidence that their payment details and personal information including addresses will not be shared elsewhere.
- Quick Support– This is a relatively new feature added to the recently developed apps which activate Artificial Intelligence-powered chatbots to support customers and enhance the user experience by making these chatbots engage with them in real time.
- Ratings and Reviews– Lastly an important feature that builds customer trust and also improves sales is rating and reviews. When people give feedback, it increases their engagement with the seller and also provides the business with suggestions on areas they should work on.
The Development of Marketplace Apps
The features and expenses of physical and online stores differ quite widely. Of course, if a business is able to dodge away from warehouse and store expenses, it will have to incur some other kind of costs for the incredible features, such as app development cost.
Marketplace app development cost depends upon a variety of factors. This includes; platforms, developer costs, features to incorporate, and more. Usually, for simple app development, the cost incurred would be around $40,000. Similarly, for moderate, it will be $50,000 and for complex, $80,000 or above. As the rates go higher, the app will get more advanced with additional features.
It should be noted that an online marketplace business is a long-term investment and initiative that will require proper planning and teams to partner with, in the process. Therefore, to come up with a successful strategy, it is important to learn what the app development requires and what personnel or expertise will be needed to collaborate with. Once the right team is acquired, the goal is ready to be accomplished.
The major components app development cost depends upon are as follows;
- Type of Application – and the purpose it serves. It may be for gaming, social networking, buying-selling and so on.
- The Platform that is going to be used- Software systems like Android, iOS, Windows etc.
- Features of the marketplace- and how it is going to affect the functionality of the app.
- Design and Infrastructure- Goes without saying, the more advanced the appearance and features of the app are desired to be, higher the cost of development will be.
App Development Teams
Basic app development teams usually consist of a Project Manager, UI/UX Designer, Developer, and QA Engineer. However, the complex, on-demand marketplace app development may require some additional roles like few Back-end developers, couple App developers, and a System Coordinator.
Different roles will have different costs of service. For instant, a Project Manager, QA Engineers, and Designers may charge around $20 or above for their services. While Back-end Developers and Member Developers may charge a tad more than that, $30 and above.
The Cost As an estimate it is safe to say that the total cost of app development will range from $50,000 to $1000, 000 on average and it will usually take about a year for it to hit the marketplace. Appsocio is a platform that can provide insights regarding more detailed cost break down and app development ideas