Marketplace app have been grabbing attention for quite some time now. It has created some serious buzz after becoming a saving grace when social distancing is the need of the hour. Moreover, in the current scenario creating an online presence with marketplace apps could prove to be a fool-proof way to minimize your losses and protect your business.
We live in unprecedented times in the wake of a global pandemic that refuses to go away. With businesses and employees suffering because of frequent and indefinite lockdowns, enterprises everywhere are looking for quick fixes and resolutions to protect themselves from financial crises. Marketplace app are deemed to be one of the solutions to this predicament.
So how do we achieve this? What does it take to carefully construct an online marketplace platform to represent your business? Finally, addressing the most important question: How much does it cost to create a marketplace app in 2022? What will the budget breakdown look like? This blog will outline the answers to all these questions and much more. Please continue reading to learn more about the different types of marketplaces and build them cost-effectively.
What is Marketplace Apps?
What are marketplace apps? How are they different from an online store? These are the common questions for those looking to enter the e-commerce app development avenue. A marketplace platform is an independent platform that facilitates the connection between buyers and sellers. Unlike an online store, the marketplace apps allow sellers to list their services and products.
On the other hand, the online store offers to sell their goods and services. The limit price, payment modes, and delivery options suit their requirements. Whereas a marketplace app functions in an entirely different manner. In addition to facilitating virtual shopping, they also work as an intermediary between buyers and sellers. However, marketplaces may differ depending on the business model and type of users.
Therefore, you must be aware of the marketplace classification by business model. To implement the monetization strategies the right way, you may need to choose the type you want before building one. The different types are as follows:
Vertical Marketplace is an exclusive website or online platform dedicated to a specific category of products or services.
This type is the opposite of a vertical marketplace and features different categories and services. For this reason, they are also popularly called as one-stop-shop.
As the name implies, this type of marketplace is not limited to a specific area or location. They extend their services to a global audience who are welcome to use their services from all over the world.
It is interesting to note that marketplace apps are also classified according to the type of participants. This classification also factors when you decide on the budget or cost required to build a marketplace app or website. They are as follows:
This type stands for the Business-to-business model where products are sold from one business to another. Alibaba would be an excellent example of this.
This type refers to a business-to-customer model where transactions occur between customers and businesses. Bonanza is a good example of this.
In this example, P2P refers to the peer-to-peer marketplace where websites act as mediators between sellers and buyers. Uber is a great example of this type of online marketplace.
Marketplace Apps and their Cost: A Budget Breakdown
So how much does it cost to build a marketplace app in 2022? Now that we have covered what a marketplace is and the different types of marketplaces available for your future online business, let’s move on to the main objective of this blog: How much does it cost to build one? Well, nothing is set in stone. The budget of building one may purely depend on the number of development hours required to create a platform according to varying needs and requirements.
For this reason, most marketplace development agencies quote hourly rates. So, for instance, if 972 hours are estimated to build a marketplace, the agency may choose to take the average rate of 50$, and the cost may come around $48,600. But, of course, this is, ofcourse, an estimate, and the cost may vary depending on the hourly rates charged by the software company you choose.
It is imperative to note that building one from scratch will cost substantially more money than using a generic website builder or even SaaS solutions. Finding the right software development team also factors in deciding the final cost outcome. If you must have a number then, simple app development could cost between 40k-60k, an average will cost you between 60-k-150k, and finally, a complex app may lie on the expensive side from above 300K. Therefore, decide on your app type, the features you require, its complexity, see if it fits your budget, and take it from there.