Category Application Development
marketplace app development cost Planning to create a marketplace app, but wondering how much does it cost to create one? Well, in this article, we will talk in detail about the costs and factors affecting marketplace app development.

Users' increased expectations of eCommerce startups, marketplace apps, and enterprises are making the online market more competitive. Users expect a comprehensive online shopping experience that can provide more possibilities than a standalone store in response to growing buyer maturity and the demand for additional options.

Although niche-focused eCommerce systems are amazing, creating a marketplace app that brings customers and sellers together offers more options, flexibility, and ease. Due to their many benefits, online marketplaces or marketplace apps are quite well-liked by online buyers. 

So don't be hesitant to spend money on a marketplace app. But how much should one expect the marketplace development cost to be? To learn that, read this article all the way through. But before that, let’s dive into the types of marketplaces. 

What are the Types of Marketplaces?

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In order to understand how to create a marketplace app and particularly the cost of creating an online marketplace mobile app, you need to know about the different types and examples of marketplaces. There are three types of online marketplaces, and they are:

1. Vertical

Vertical marketplace websites stand for the elite group that provides clients with in-depth products from top sellers. This kind of marketplace specializes in a single sector or niche, providing a certain product category to niche markets. For instance, marketplace programs like Zillow offer housing purchasing, selling, or renting services that help customers save time, work, and money. This kind of program or website offers comparable services from several suppliers.

2. Horizontal

A horizontal marketplace is ideal for drawing many merchants from various industries. The horizontal marketplace sells many products with traits comparable to those of a particular market and focuses on a broad range of goods and services. 

The company that develops horizontal marketplace software offers various goods from a few categories that share a secondary characteristic. These marketplace apps offer products and services from many categories that share similarities.

For instance, Etsy is among the perfect examples of marketplaces following the horizontal approach. It enables vendors to offer handmade goods in various categories.

3. Global

One of the best marketplace platforms is the global market. The services this marketplace platform provides are available to various clients in various regions where buyers and sellers are dispersed over considerable distances. 

A global market involves the trade of goods, services, and labor everywhere and is not restricted to any particular geographical area. A perfect example of this is Amazon. But have you wondered how much it cost to develop an app like amazon? Continue reading this article to know that!

Major Features of an Online Marketplace Application

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Now that we know about the types of online marketplaces, it is essential that we know the basic features that one should include in their marketplace app so that they have clarity not just on the cost of creating an online marketplace mobile app but also on how to build a marketplace app.

Here is a list of basic features that a customer expects from a marketplace app and that a developer of a marketplace app should be aware of-

1. Easy Registration

It is crucial from a commercial standpoint to provide a simple registration feature in the marketplace offering. This feature can be given priority by a company that develops online marketplaces to promote a web application in the e-commerce marketplace sector.

2. Contact System

Any application that offers goods or services must have a contact system because it makes it possible for the buyer and seller to communicate. Therefore, an online marketplace software requires a contact system with chat, call, and email choices.

3. Social Media Integration

The main source of traffic for eCommerce marketplace applications is social media. It involves more than simply a one-tap login. You must make entering your application simple. Users should be able to easily access your application through Gmail, Twitter, Facebook, or any other social channel with a few taps. You need to advertise your marketing strategy on social media sites and allow customers to share their purchases, reviews, deals, and referral codes with friends and others.

[Also Read: How much does it cost to make a social media app?]

4. Frequent Updates of Products

If you are wondering how to build a marketplace app that prioritizes its customers, then this feature is a must! To give customers the most recent product and service information, online marketplace apps must have a feature where they can continuously update the descriptions, photos, and videos.

5. Multiple Payment Gateways

Solutions for e-commerce marketplaces are more likely to come into contact with clients who start payments using various methods and attitudes. Therefore, it is always appropriate to provide customers with various payment gateways so they can make their selections. In addition, your marketplace business solution can contain several additional features, like support for several currencies, multiple languages, product tracking, predictive research, subscriptions, etc.

6. Ratings and Reviews

A rating and review system is necessary for a shopping platform since it enables buyers to forecast and comprehend the advantages and drawbacks of the product. It can improve customer satisfaction if it is added.

Factors Affecting the Overall Development Cost of Building a Marketplace App

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Depending on various factors, a mobile app development marketplace project could be finished in a few hours or several years. Similarly, the total cost to make an app is also affected by a wide range of factors, such as:

1. Application Type and Size

The size and complexity of the mobile application determine how much it will cost to make an app. Apps come in three sizes: small, medium, and large. The three categories of mobile applications are as follows.

Small apps are oddly created for a single platform with uniform user interface elements and restricted functions. These applications don't require API integration or backend development. For instance, practically all phones come with a weather app pre-installed.

Applications of a medium level are also created for a single platform, but they come with a unique user interface and payment options. This category includes less sophisticated applications that are created for multiple platforms. 

Large or complex apps typically include additional features, such as support for several languages, expert design, and tailored animations. Backend development procedures are needed for these applications to store and manage massive databases.

The marketplace app development cost differs from one app to the next. Database-driven mobile apps, hybrid mobile apps, mobile games, native mobile apps, simple functionality mobile apps, and more are all applications.

2. Choice of Platform for Building Apps

The choice of a platform for building a marketplace app would depend on the business strategy. The service must be accessible on widely used operating systems like Android and iOS. However, there are two methods for creating apps: hybrid and native.

To expand their business opportunities, most companies nowadays develop native and hybrid apps, particularly for Android and iOS. Web applications, which are fully functional variations of web pages designed for mobile devices, are another form.

A noteworthy difference between hybrid and native apps is cost. Additionally, it permits capability for native and web apps. With just one line of web code, it makes it possible for the program to run on various platforms and devices. However, if User Experience (UX) and high performance are the top priorities, native apps are the best choice. More information about this is provided in the next points.

The cost to make an app, particularly an online marketplace app, increases partly because native Android apps require more time to write, layout, and fragment. A further advantage of iOS is that there are only a few screen sizes and varieties, which enables app development companies to produce their goods with a fair turnaround time.

3. Location and Team Composition

The total cost of developing an online marketplace app may vary from business to business. The cost is relatively expensive in large firms because multiple departments are in charge of various tasks. Different pricing policies may apply to large and specialized app development companies.

On the other hand, a startup business provides app development services with just one person handling all the work; therefore, it is less expensive. Additionally, a tremendous amount depends on the firm's location and the expertise of the team working on your project. 

A project manager, programmer, QA engineer, and UI/UX developer comprise a basic and primary app development team. A project manager, two app developers, one system administrator, one backend developer, and one QA engineer make up an extended team.

Therefore, a large workforce may be required if your project is complex and the process of developing an app is lengthy. Consequently, that raises the overall marketplace app development cost.

4. App UI/UX

For your application to succeed, user interface (UI) and user experience (UX) are crucial. Your application must have UX/UX components like icons, push alerts, visual images, and customization if you want to make a lasting impact on your users. It is challenging to create a simple yet distinctive UI/UX app design, and it will increase the cost to make an app. Customers will want to use your app more frequently and won't eventually stop using it if it has a good design.

5. Localization

The number of markets where you intend to release an application affects the cost to make an app. Additionally, it goes beyond merely supporting new languages. It is common for language localization to increase the price of your project. Moreover, marketplace apps involving customer support increase the cost of development even more. 

Localization means that your business can reach more people where they live and work by making your online presence available in different languages across all mediums. Customers from all over the world benefit from this and are more likely to trust your brand. This will significantly benefit you as it will increase your customer base and affect the overall marketplace app development cost.

6. Features and Testing for Apps

Providing users with services on their mobile devices is the primary objective of developing an online marketplace app. As a result, a mobile application's success heavily depends on its features' capacity to deliver services efficiently. The software was very simple for people to utilize. Due to this, careful feature structuring is required.

Every application must also overcome the obstacle of testing the functionalities to ensure a hassle-free service. As features grow in number and complexity, more time is needed to debunk and test them, which impacts cost.

For example, a food delivery app fundamentally directs the beginning to the end of the process with many service integrations such as interaction, location, payment, and real-time status; nevertheless, a payment app has many security measures with a simple user interface. As a result, the price of creating an app increases along with the number of features.

7. Cost of App Maintenance and Marketing

An application's maintenance costs are a separate expense. It refers to rolling out new updates to improve an application's functionalities. In addition to maintenance, your application needs marketing plans to help your business stand out in a crowded market. 

All these maintenance and marketing efforts to make your app run smoothly and in tandem with the latest trends require constant money. Thus, the mobile marketplace app maintenance and marketing effort can increase the cost of developing an online marketplace app.

8. App Hosting and Security 

Applications for mobile devices constantly exchange enormous volumes of data. Private company transactions, user search data, employee data, etc., might all be included. If a data vulnerability is found, the company will shut down. As a result, finding a trustworthy app hosting provider with cutting-edge security features is crucial.

Dedicated servers with cutting-edge multi-layer security measures are recommended to provide flawless and uninterrupted service. However, it is more expensive than shared hosting options. Importantly, the appropriate servers must be rented based on the size of the business and the volume of traffic.

However, it is always good to invest money in app security for mobile marketplace apps. As customer trust increases due to security assurance, using multi-layer authentication systems and tight app protection security levels is not a waste of money.

Cost to Develop a Marketplace App

The question how much does it cost to build an online platform cannot be answered in a straightforward manner. The number of features and necessary resources that must be added to the app development procedure impacts the marketplace app development cost. 

Based on all these aspects, you must choose top mobile app development companies and invest more money, if required, to create a unique marketplace solution. Considering all these things, you should expect to pay between $15,000 and $70,000 to construct an e-commerce marketplace website or mobile application.

On the other hand, operating an e-commerce marketplace solution on a single platform is difficult. The ideal response is to create this cross-platform website and application, particularly for platforms like iOS, Windows, and the online web. You can pick any of these platforms based on your budget. 

An e-commerce marketplace website for mobile apps will initially cost between $,7000 and $25,000 to construct. Developing a single platform would be between $20,000 and $55,000.

Additionally, suppose you already know your mobile application requirements or specs. In that case, the price of developing a mobile app ranges from $15,000 to $20,000 for simple apps, $25,000 to $30,000 for medium applications, and $50,000 to $70,000 for elaborate and complicated applications. However, the general cost of developing a mobile app differs depending on the above specifications, demands, and the marketplace development services that you appoint.


This article is intended to assist you in understanding the key elements that determine the cost to make an app, whether you are developing it directly or with the assistance of an app development company. The truth is that organizations shouldn't start estimating how much it will cost to develop a marketplace app until and unless they clearly understand the application's needs. 

However, firms must make crucial choices to embark on the journey of creating marketplace apps. Business owners can easily construct their distinctive mobile applications by utilizing the market's business models.

Sakshi Kaushik

By Sakshi Kaushik LinkedIn Icon

A passionate writer and tech lover, she strives to share her expertise with mobile app developers and fellow tech enthusiasts. During her moments away from the keyboard, she relishes delving into thriller narratives, immersing herself in diverse realms.

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