How Much Does It Cost To Build A Marketplace Website?

Read this blog till the end to find out the cost to build a marketplace website!

Online shopping is a megatrend. Today, there are more than 1230.5 million people who shop online, and these numbers are only increasing.

As much as 85% of Americans admit they go online daily. And out of these, 79% of Americans make purchases online.

Online shopping has been around for some time, but compared to its traditional counterpart, it’s still new. Nevertheless, more than 62% of online shoppers would rather purchase items online than at a physical store.

This is the reason behind the amazing, unparalleled revenue generated in this industry. For example, every online visit to an online eCommerce marketplace results in at least USD 3 spent. The love of shopping and how easily accessible the internet is today, have made the online marketplace industry one of the largest in the world.

As such, it is expected that B2C, the common model of the online marketplace, will reach $3.5 trillion in sales by 2024.

With trillions in just sales, these numbers have attracted a lot of businesses from throughout the United States of America to develop their online marketplace websites. While finding a development partner isn’t all that difficult, the most difficult part is finding out the cost to develop a marketplace website.

Well, it isn’t all that simple to predict the cost of website development. But if you want to find out exactly that, this blog is for you.

Here, we shall be going through everything related to cost and marketplace website development. Therefore, with this being said, let’s get right into it:

What is an Online Marketplace Website?

Well, as the name suggests, these are websites or online spaces that act as a virtual marketplace. In other words, it is a website with functionalities and features that allow two groups of users to buy and sell items.

Now, these websites are very popular and common these days. Amazon, eBay, etc. are examples of the online marketplace. With billions of people shopping online, this solution is more than just popular.

Coming back to the platform itself, Marketplace website development can differ from project to project and highly depends on the business model and types of platform.

Now, an online marketplace can be B2B (business to business), B2C (business to customer), or C2C or P2P (customer to customer/peer to peer).  There is various business models, and they are all successful in their respective fields.

Now, there can be different types of online marketplace. We will be going through them in the next section of the blog.

Types of Online Marketplace

The different types of online marketplace websites based on their working process are, as mentioned below:

1. Vertical marketplace

The vertical marketplace is one of the most common types of solution. It is known as the vertical type because it focuses on specific product and service categories.

Therefore, their services are much more unidirectional and serve a common interest. One of the most popular examples of the same is Airbnb Marketplace.

2. Horizontal Marketplace

As the name suggests, this form of marketplace is just opposite to the previous one. While the vertical marketplace focuses on one specific niche, the horizontal marketplace, on the flip side, focuses on a range of products and services.

Due to the wide range of products, these marketplaces are also often known as one-stop-shop. And what can be a better example of the horizontal marketplace than Amazon, the best example of eCommerce website development.

3. Global marketplace

As the name suggests, this type of marketplace isn’t geographically limited. It offers a wide range of offerings and services across the globe.

While this is a bit more expensive to develop and maintain, it is also one of the highest revenue-generating ones.

These are the types of marketplace. Now, let’s look at some examples of the marketplace before we go on to discuss the cost to build a marketplace website.

Examples of Marketplace Websites

If you are developing a marketplace website, it is a good idea to take inspiration from the best. That is why, in this section of the blog, we shall be looking at some of the best examples of online marketplace websites.

Therefore, with this being said, let’s get right into it, starting with:

#1. Amazon

Well, well, who hasn’t heard the name Amazon?

This is one of the world’s largest companies, worth trillions of dollars and generating billions of dollars in profits. And this is the pinnacle of marketplace website development.

Being a pioneer of many things, this platform has been responsible for 47% of online shoppers’ first.

Moreover, 79.8% of Amazon shoppers choose this marketplace for its “fast, free shipping.”  Therefore, if you want to build an online marketplace, it is a good idea to take inspiration from Amazon.

#2. eBay

eBay predates most of the marketplace platforms today.

By Dec 2019, the platform had more than 183 million active shoppers across the world. With its amazing offering, it made $10 billion as annual net revenue in 2020. This was a significant increase from the $8.6 billion made in 2019.

What makes eBay stand out from the rest is the fact that it is a P2P or C2C platform. This means the platforms work as a space where people can sell and buy items while providing their features and functionality, allowing users to do the same.

#3. Etsy

Etsy, one of America’s largest eCommerce platforms, is known for its unique offerings. In 2020, Etsy made over $1.7 billion in revenue, exploding over 100% since the year before.

And this platform is one of the most popular ones out there.

These are some examples of the best eCommerce platforms, Now it is time to move on and look at some of the features that you should include in your eCommerce platform.

Top Features to Include in Marketplace Website Development

Features are important.

Firstly, they play an important role in success as well as marketplace app development cost. Therefore, it is very important to choose the right features before you get into the development process itself.

Therefore, in this section of the blog, we will be discussing some of the best features that you should include in the online marketplace. These are, as mentioned below:

• User Registration

One of the most basic features is allowing users to register themselves on the platform. This can be done through email, phone number, Google account, Apple ID, and so on.

• Advance Search

The advanced search option allows the user to look for items.

It also allows them to sort and filter to get specific products. Therefore, this is an important part of the feature set.

• Wish List

A wish list allows users to add items to the list that they plan on buying or wish to buy later. That is the reason it is an important feature of the platform.

• Various Payment Methods

Now, since you are developing an online marketplace, it is also important to add payment methods, for obvious reasons.

Some of the top platforms also have in-wallet integration.

• Cart

The users can add items to the cart and then check out with it.

It works just as you would with a real cart. Nevertheless, this is an important feature that makes the entire shopping experience that much easier.

• Rating/Review

This is a part of the product page and they can leave their feedback on the product.

• Customer Help

The customer helpline is very important.

The reason is that people often come face-to-face with a technical issue, this feature allows them to contact the help team.

• Push Notification

Push notification are yet another basic feature that keeps users locked in. Therefore, you should include this feature in eCommerce marketplace website development.

• Product Page

The product page has all the details related to the product. Plus, it also has details, descriptions, ratings, reviews, and so on.

So, these are the features that make the platform stand out and also affect the cost to build a marketplace website.

In short, a unique feature adds up to the cost of development, since it requires effort as well as expertise from developers. On the other hand, a platform with a simple feature set is much cheaper.

Nevertheless, with this out of the way, let’s look at the average marketplace development cost.

Average Cost To Build A Marketplace Website

Clients often ask, “How much does it cost to create a marketplace website?”

The answer is the average cost to build a marketplace website can range from $45,000 to $115,000 and above.

Now, you might be wondering why we can’t pinpoint the exact cost of development and there is a good reason behind it.

You see, every project of website development is unique. The feature set, its tech stack, client’s preferences, complexity, design, etc make it unique. Plus, all of these factors also play a big role in determining the cost.

That is why the total cost of a marketplace project highly depends on a combination of these factors. Therefore, it is not possible to develop a marketplace website without learning project specifications.

For that reason, if you want to find out the exact cost, it is highly recommended that you consult a PHP web development company that will be able to provide more insight on the same.

Moving on, we shall be going through the different factors that affect the total cost in the next section of the blog.

Factors That Affect the Cost of Build A Marketplace Website

Various factors affect marketplace development cost. In this section of the blog, we will be going through some of these factors.

Therefore, with this being said, let’s get right into it, starting with:

• How to Develop A Marketplace Website? Related Cost

So, how to develop a marketplace website?

Well, there are different methods. And based on which one of these you choose, the cost can also be different. The cost to build a marketplace using different methods is, as mentioned below:

• Complexity Of Build A Marketplace Website

Well, based on the complexity of the solution, the cost to develop it also differs.

• Tech Stack for Website Development

The tech stack refers to the set of techniques used for web development. MEAN Stack is a popular example.

Now, various stacks come at their own cost. So, based on the one you choose, the total cost of development can greatly differ.

• Mode To Hire Web Developers

Well, if you want to develop a market-leading online marketplace website, you need to hire web developers.

Now, there are various ways to hire developers and the cost associated with them is also unique. Let’s look at them below:

• Types of Marketplace Development

Now, at last, let’s look at one of the top factors that can affect the total cost to build a marketplace website.

You see, there are different types of online marketplace. Marketplace per se is a type of website, and within different niches, it can take different forms. This is the reason the cost to develop a peer-to-peer marketplace is different from the cost to develop an NFT marketplace.

Therefore, the type of marketplace website you choose to develop also affects the marketplace development cost.

How Long Does It Take To Build Online Marketplace?

In addition to the cost to build a marketplace website, people often ask how long it takes to develop an online marketplace. The answer is very much the same; it depends.

It depends on how you hire dedicated developers, what is the complexity, etc. Nevertheless, the hours required to develop various parts of an online marketplace are, as mentioned below:

Conclusion

Online marketplaces like Amazon and eBay are generating billions in revenue. And with the megatrend of online shopping that is here to stay, these platforms are only growing larger.

This has inspired a lot of other people to develop their marketplace.  In this blog, we discussed everything related to the same, including a detailed analysis of the cost to build a marketplace website.

Now, if you want to learn more about it or develop your online marketplace website that generates millions (or Billions) to help your business grow, all you need to do is reach out to a website development company.

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.