Cost of Building an E-commerce Marketplace App Denver - Blog - Vivim

Cost of Building an E-commerce Marketplace App Denver

The reader of this article will have an understanding of the cost involved in building an E-commerce Marketplace App.

Online platforms are very popular. With a 24-hour market place, it is only safe and convenient that individuals consider running businesses online. The added advantage that internet services are faster and better. Digital market places are sprouting and it seems like that is the best way to go.

Everyone has seen the effect and convenience of online shopping from apps such as Amazon or Ebay. These platforms has a global market and they are operating physically from a few centers. However, an individual is able to run a complete purchase right from the comfort of their home or office.

Millions of transactions are completed successfully by a single app. Before running in to invest in an app like Amazon, businesses must have other considerations. Every App is dependent on the business needs and budget. Therefore, the cost of building an e-commerce marketplace app will vary widely for different business.

Vivim can help you to find out a plan that will bring your business a revenue and reach your target market. Before that, you can check out a prototype we created of a marketplace app.

Done mobile app that was designed by Vivim.
Done marketplace app designed by Vivim.

What is Marketplace Apps?

Marketplace Apps allows consumers to exploit multiple variations. They do not limit consumers to a specific brand or product. With a marketplace App, people can view products and services from various brands. Other than providing different products, individuals will notice a difference in how companies promote themselves.

Consumers are able to compare and contrast products on one platform. The growth of marketplace Apps is bringing shopping capabilities all under one roof for consumers and companies alike. Whether you need information, a product, service or an investment, there is always a marketplace App to suit consumer needs and preferences.

Advantages of Online Marketplaces

Online marketplaces are gaining popularity and for the right reasons too. The app owners have the opportunity to make a living as they provide such platforms. The following advantages/benefits apply to both buyers and sellers.

They bring together large pools of buyers and sellers

Marketplace Apps act like an intermediary between buyers and sellers. They provide a convenient environment with necessary guarantees. Some apps will address global demands allowing individual shop from any corner of the world without traveling.

They promote transparency and convenience

Gone are the days when consumers had to visit several websites just to compare a similar product from different brands. Marketplace apps allow consumers to search for similar products. They go as far as allowing consumers to rate products and services. They list prices and features openly.

Sellers attract a wider audience

Companies and businesses are able to reach out to the global market. In addition, smaller and new brands are able to compete at an even platform with larger companies. The market acquisition is fair for all business brands. Depending on business market targets, clients can access international grounds. It promotes market acquisition.

Reduce the cost of marketing

Companies are opting to use marketplace apps more because they reduce their marketing efforts. E-commerce marketplace apps will attract consumers looking for products. As such, companies listing on these apps promote their brand. The exposure to new customers is high as compared to stand-alone websites.

Considering that an e-commerce marketplace app is beneficial to both business parties, the next aspect would be to consider the cost of building one. Before deciding the budget to work with, other considerations will determine the cost. Placing all factors into consideration will determine what a business needs as well as the budget required to meet these needs.

Things to Consider for Online Marketplace Development

Marketing strategy for marketplace app

Businesses come with unique goals and objectives. They are a great consideration when looking to venture into the online platform. In turn, they will affect the overall budget.

Ready-made platform vs customized marketplace

Businesses can choose to work with an already existing online marketplace. Businesses working on a tight budget will benefit from such a platform. It is not only cost-friendly but also quicker to install. The challenge is to ensure that a product stands out rather than sinking into millions of other similar products.

A customized marketplace app will cost more and it will take time to develop. Other than financial constraints, it offers brands the ability to stand out from their competition. The personalized marketplace app is ideal for promoting new products or a niche product. The uniqueness attracts consumers and in the long-term retains loyal customers.

The possible set of functions

The possible set of functions affects the cost of development. Complex sites are more expensive not only to develop them but also to maintain. Their complex architecture requires a skill set. They also allow consumers to carry out more functions.

Businesses can start small and advance over time as they monitor customer preference. It is recommended that companies start despite their budget limitation and work their way up to an app with a better and convenient set of functions. No matter how many functions an app contains, they should always remain visible to users.

Even when a company is running on a budget, the site must include an administration panel and the user platform.

The administration dashboard

Reasons Businesses Run Better with Dashboards

The administration panel aims at controlling aspects such as product inventory, customer orders, payments as well as marketplace settings. The administration is similar to the back office where the management can only access. 

The user platform

The user platform refers to what is visible to the clients. The user interface will vary depending on consumer needs and preferences. The basic features every interface should possess include:

  • An account page
  • Authorization and security
  • A registration form
  • Client support system
  • Item listing
  • Search engine
  • Shopping cart
  • Reviews section
  • A payment option
  • Shipping functionality

These features are the basic operating functionalities of every marketplace app. They ease the buying process and ensure that consumers complete a transaction comfortably.

Analyzing the Market

Team discusses the future market penetration.
Team discusses the future market penetration.

Before starting on development, it is best to first analyze the consumer market. This is dependent on whether the app is targeting a niche market, a specific country or a continent. In the beginning, competing with existing global giants is a bit tricky.

Think of first starting with several important features with an attractive user interface. Make it easy to go around. Monitor its success rate with the current products and/or services. Carry out a SWOT analysis to determine the success rate in terms of profit and accessibility to consumers.

SWOT Analysis

A SWOT analysis addresses the strengths, weaknesses, opportunities, and threats of the marketplace app. A basic outline will include the following especially for a newbie on the online platform.


  • Offers a low initial investment cost as compared to other traditional methods
  • Enjoy exposure to a wider pool of clients
  • Easily integrate with other digital platforms such as company websites and social media
  • Promotes product visibility
  • Provides an efficient internal search engine
  • Cost effective for sellers and buyers


  • Personalized recommendations make it easy search for products
  • Outstanding product placement
  • Virtual try-on promoting a view of the general outlook
  • Customer loyalty program (customer retention)
  • Label scanning technology


  • Challenges implementing a search engine
  • Possible slow delivery especially if sellers perform as individual entities
  • Security problems
  • Possibly attract fake or unbranded products


  • Initial loyalty concerns
  • Delivery challenges
  • Global competition from giant marketplace apps
  • Weak and slow initial engagement

Looking at the above SWOT analysis, businesses can be able to identify strengths and opportunities that will boost their e-commerce app visibility. In addition, they will also put in place strategies to counter threats.

Estimating the Cost of App Development

Businessman drawing APPS concept with Angular Framework

The cost of building a marketplace app is dependent on three aspects: wireframing, designing, and development. Understanding each aspect will provide a rough estimate of the overall cost.

Wireframe Cost

Wireframing refers to the process of providing a rough template of the app. It provides an idea of what the app is capable of performing. Both developers and clients have a peek view of the app.

Design Cost

The design of a marketplace app will promote its acceptance by its target market. Ensure flexibility and versatility so that consumers can maneuver with ease. A flexible app can go viral in a short time thus being able to reach the mass market fast.

A design that easily converts between devices will come in handy. People can use it on a computer as well as on other mobile devices. It should be able to operate with different operating systems for convenience. The more the design features, the more it will eat into the business budget.

Development Cost

App development puts together the ideas and the design to obtain a complete product. Everything is coded and the app becomes functional. The cost of development is dependent on the functions added to the app and the resources to complete the app.

The resource input will call for different types of specialists. The designer may differ from the app developer. Even when they are similar persons, their skill set will call for different payment budgets. Some resource services will include project management, backend and front-end development; UX and UI design, as well as layout and quality assurance.

Is it beneficial to have an E-commerce Market App?

After possibly spending thousands of dollars building a marketplace app, what are the financial benefits? The question is, how does a marketplace app make money? Making money happens in two ways.

Affiliate revenue

Affiliate revenue arises from referring customers to other apps. The app will charge a commission every time the referral visits the apps.

Transaction fees revenue

Transaction fees are a very popular mode of income for e-commerce marketplace apps. Charges under this model arise from product listing fee, commissions from auctions from sellers, and/or promotional product fees.

E-commerce marketplace apps help companies boost their sales while at the same time makes money for the app owners. The idea is to build an app that functional, appealing, and competitive. With the advancement in technology, ensuring that apps allow for feature addition is important. The cost of building an e-commerce marketplace app can be spread out in the long-term.

How to Obtain Value for a Marketplace App

It is important that businesses work with a reliable web designer and developer for the best app. It is not about obtaining the affordable development team, but about working with one who understands the app requirements. Affordable is not always best especially when seeking to release an internet-related service.

Obtain value for the money spent in building the e-commerce marketplace app. Keep in mind that the business is walking into a competitive market. The app needs to stand out and attract consumers. Clients and product brands will be able to trust the app capabilities translating to more business. More business translates to moneymaking opportunities.

Ensuring that the quote provided for building the marketplace app accounts for its services is important. Businesses must consider value for money spent. It is not about paying what other businesses paid but about paying for a relevant app.

Bottom Line

The cost of building an e-commerce marketplace app is dependent on several factors. Companies that can afford to make a hefty one-off payment can have a complete app with all the possible features such as that on Amazon. Other smaller companies or individuals can choose to spread out the cost as they grow in the business. Depending on the design and development process, a marketplace app can cost up to $180,000.

However, such apps are designed to generate money as well. Addressing the right target market will make adequate returns making the cost a great investment. The returns should be able to cover the initial cost of building the app. In the future, the returns should be able to cover any costs relating to any additional feature additions.

The cost of building an e-commerce marketplace app cannot be simply spelled out. Experts must address business needs and target market preferences. The cost will, therefore, vary from one business to another. Remember, the charges experts apply must provide value for business operations. Keep in mind that all business investments must seek to increase market share and maximize profits.

Get in touch with Vivim to find out how our engineers can help you to create marketplace app and help your company to focus on important tasks.

Let us help you to build the mobile application that you’ve always dreamed of.

If you can think it, we can create it.