Cost To Develop a Marketplace App Like Amazon

With a massive user base of 310 million customers worldwide, Amazon stands out as the current frontrunner in the ever-evolving world of e-commerce.

So, it’s obvious that people want to create Amazon-like apps, which is why they wonder about the cost to develop an app like Amazon.

Amazon-like app development costs from $40,000 to $200,000; this cost can increase or decrease due to various factors, including features & complexity.

In this guide to developing an app like Amazon, we will discuss the cost, benefits, process, and factors affecting it.

So, let’s get started.

ECommerce App Market Overview

Market Statistics provides a general overview.

If you’re serious about building an eCommerce app like Amazon, then you need to delve deeper into the booming world of eCommerce.

This section will explore the surging demand for online shopping.

As the reports depict, the Global e-commerce revenue is projected to explode by $5.5 trillion by 2027. Other than that, the market stats also depict:

• The US alone saw a staggering $271.7 billion in online retail sales during Q3 2023.
• Nearly 2.8 billion people are expected to join the online shopping party by 2025.
• Electronics reign supreme, capturing a whopping $837.2 billion in sales in 2023.
• The online browsing journey dominates, with 60% of shopping experiences starting online.
• Digital wallets are poised to be the king of payments, holding 54% of the global e-commerce market by 2026.

These statistics paint a clear picture that the future of shopping is online.

Amazon eCommerce App: An Overview

Launched in 1994, the journey of this app began in a small garage. It initially started as an online bookseller in a garage before exploding into the powerhouse it is today, with no end to its growth in sight.

While many currently know it as Amazon, the e-commerce giant almost bore the name “Amazon MakeItSo.com”.

Amazon is an online marketplace, or one can also say an eCommerce app, that allows you to browse through product catalogs, add items to a cart, and complete purchases from your phone.

In short, it basically means putting the Amazon shopping experience in your pocket.

Various things contributed to the app’s fame:

• Huge Selection – First things first, it has a vast product catalog, offering you to buy from everyday essentials to much more in one place. This convenience is one of the biggest draws for many users.
• Competitive Prices- It has a competitive pricing strategy, which means you can see discounts & deals from different vendors before making a decision.
• Convenience – The ability to shop anytime, anywhere, directly from your phone is a game-changer for busy consumers. The app streamlines the shopping process and makes it incredibly convenient.
• Fast & Reliable Delivery- One thing for sure is that Amazon has built a reputation for fast & reliable delivery, often with options for free & one-day shipping. This speedy service adds to an overall positive user experience.
• Seamless Integration with Amazon Prime – Several additional benefits are offered to Prime members, including benefits like exclusive deals, free one-day shipping, and access to Prime video streaming content.

That’s how Amazon became huge. Looking at these offerings, are you excited to build your own marketplace app like Amazon? If still confused, the next segment might help.

Benefits of Launching an App Like Amazon

By offering unparalleled convenience and selection, eCommerce apps like Amazon have revolutionized shopping.

This section dives deep into the unique advantages your app can offer users, highlighting why it will become their go-to shopping destination.

• Reaching a Wider Audience

With a mobile app like Amazon, you can grow your business and reach a huge number of users. In the past few years, shopping from the phone has become a trend, so having an app gives you a wider reach than a website.

• Increased Convenience

Such apps offer a more convenient shopping experience for users.

They can browse products, compare prices, and make purchases easily from anywhere, anytime.

This handiness can lead to higher customer satisfaction and repeat business.

• Improved Customer Engagement

By building an app like Amazon, you can focus on enhancing your user experience. How? You might ask.

Well, you can target them with push notifications, personalized recommendations, and loyalty programs. This will make you come back to your app for more.

• Valuable Data Collection

Through app analytics, you get to know your business better.

You see, nowadays, customers are king. It becomes important to gain valuable insights into customer behavior, such as browsing habits and purchasing trends.

This data can be used to improve your product offerings, marketing strategies, and overall user experience.

• NEED OF THE HOUR

With 2.14+ billion people buying products online, it’s more than clear that online shopping is growing. Now, if you build a marketplace, it’d be a wise idea to cater to this growing number of people.

You can offer them a platform to search for a product, compare prices, and complete purchases with minimal clicks. This accessibility can significantly improve customer satisfaction and conversion rates.

• Increased Revenue

An app puts your store directly in the pockets of potential customers.

As a result, it is easy to use and more convenient. And, in current times, people look for platforms that adapt to their changing needs and market trends.

If you offer them a well-designed app like Amazon with amazing features, you can target a target audience and get an excellent amount of revenue.

Now, as we have talked about, the reasons to develop a marketplace app like Amazon.

It’s time we head towards the features you should integrate into your app to stand out from your rivals.

Essential Features for Your Marketplace Success

You need some amazing features to function smoothly and attract users. And what are they?

Here’s a breakdown of those features that should be on your list to make an app like Amazon.

► User Panel Features

To ensure a robust and efficient admin panel, here are some must-have features you should consider.

1. User-Friendly Navigation

Imagine a store where you can’t find what you are looking for. Irritating Much?

App navigation is also similar thing. So, we suggest to develop an app like Amazon that’s intuitive and easy to use.

After all, it is the key that unlocks its long-term success.

This way, your users can easily find what they are looking for without running to their competitors, browse multiple categories, and complete their purchase from their couch.

2. Robust Search and Filtering

Searching and filtering for what you are looking for can be tiresome.

To ensure it doesn’t affect the user experience, make sure that you provide them with easy search and filtering for any product using keywords, filter by brand, price, color, size, or any other criteria.

This helps them to narrow down their options and find what they are looking for without any trouble. Such features are a must in the best eCommerce platforms.

3. Push Notification

It’s important to utilize push notification services, how exactly will it help you?

This will assist you in retargeting your customers and remind them about your app again and again.

You can easily send them offers about the product they have been looking for or share information about a product that’s in stock, this will help them to make better decisions.

4. Easy Checkout Process

Nobody likes a lengthy checkout process.

The quicker and easier the checkout process, the better the user experience will be.

So, remember when building an app like Amazon, you should have a single page where users can enter all the necessary details at once and complete their purchase.

5. Multiple Payment Options

Your users should be able to pay however they want.

With payment gateway integration, you can offer them different modes of making payments such as credit cards, debit cards, or wallets.

You can also give users peace of mind who want to pay in installments, by offering them a “buy now, pay later’ option to fuel their shopping spree.

6. Order Summary & Review

Before finalizing the purchase, you should show a clear summary of the purchase made by the user.

This will assist them in knowing about the items being purchased, the quantity of the product, shipping costs, and more.

Moreover, it will also allow them to review the order and avail of any available offers before finalizing the order.

7. Track Delivery

Once they have placed the order. You should let them track the delivery for peace of mind and to be a trusted service.

It will equip them with necessary information, such as where their package is, and much more, with just a few taps.

Also, offering them a detailed breakdown of the package’s journey, including transit hub, sorting facility, and out-for-delivery updates, will be helpful.

Attracting and retaining sellers is the lifeblood of your Marketplace. Let’s see some features for them.

► Seller Panel Features

Let’s look at some of the seller panel features that can make your app outstanding and help sellers manage their business more effectively.

1. Seamless Listing

Let your users add products with a breeze.

This includes uploading high-quality images, crafting detailed descriptions, setting competitive prices, specifying inventory levels, and product categorization.

2. Order Visibility

We can provide sellers with a clear dashboard to track the status of customer needs from the moment it’s placed to their delivery.

It’s essentially a window into the entire order fulfillment process, providing sellers with valuable information and control.

3. Insights Into Their Data

You need to offer your sellers with right tools to manage customer returns and refunds efficiently.

Features like reviewing return requests, issuing refunds, and tracking returned items can save sellers time and hassle.

Support your sellers with better reports that help them understand their business performance.

These insights will aid them in optimizing their product offerings and marketing strategies for maximum impact.

4. View Customer Feedback Loop

This feature empowers sellers to view customer reviews and ratings for products.

Also, feedback will help sellers to improve product quality and customer service, leading to better satisfaction and repeat purchases.

5. Promotions and Deals

You should allow your sellers to craft their own discounts on products. This includes offering flash sales, coupons, or products in bundles.

Other than that, permitting them to experiment with different types of promotions to boost sales can be a great way to make sure they have a good experience with your app.

As we have laid the foundation of features, you might be getting curious about how to create an app like Amazon with such amazing features.

How to Create an App Like Amazon?

So, how to make an app like Amazon?

To bring your app idea to reality, several steps need to be followed carefully.

This includes everything from conceptualization to launch. Let’s get to know them one by one:

Step 1: Ideation and Strategy

This is the first step in the app development process where you have to define your app’s purpose and target audience.

After that, research the market and identify potential competitors. Once you do that, you can now develop a clear vision for your app’s functionalities and features.

Step 2: Analysis & Planning

Once you find your idea, it’s time to bring all the necessary elements into a detailed roadmap.

This includes everything from UI and user experience and mockups to app development costs and resources needed.

Step 3: App Designing

Now we will lay the focus on UI/UX design.

UI/UX is short for User Interface and User Experience design; this is the foundation of a successful app.

This is the phase where you need to create a wireframe and prototype to encompass the visual elements that users interact with.

Step 4: Developing the App

It’s building the core functionality of the app. This focuses on the user interface and the backend part of an application.

Overall, this development stage translates your app’s vision into a working reality. This stage requires a skilled development team with expertise in mobile app development.

Step 5: Testing

As soon as your app is ready, you should move forward with mobile app testing. It’s a crucial part of creating an app like Amazon and making it successful in the market.

This will ensure that your app doesn’t have any bugs or errors and is free from any technical issues.

Another reason to have thorough testing is because it helps to lead a smooth and uninterrupted user experience which is the need of the hour. With that being said, time to deploy.

Step 6: App Launching

Moving on to launching your app.

Once you are done with testing, you can now easily launch your app, for which you can publish your app to the Play Store or submit your app to the app store.

It will take some time to hear back from them; meanwhile, you can make some app marketing strategies to attract users.

Step 7: Maintenance

Time to maintain the app.

Once your app is out there to be downloaded by the user, your task is not over. Continuous updates, testing, and new releases are necessary based on user feedback and market trends.

Cost to Build an App Like Amazon

One of the most important questions that people often ask is “How much does it cost to create an app like Amazon?”

As discussed, the cost to develop an app like Amazon ranges from $40,000 to $200,000. This can vary depending on the various features that we will discuss in the section below.

Here is a small breakdown of eCommerce app development cost:

This is just an estimate; to find out about the right cost, you can contact an on-demand app development company.

Factors Affecting the Cost to Make an App Like Amazon

Several factors can affect the overall cost to launch an app like Amazon.

In this section, we will talk about all those factors that can affect your budget.

1. Complexity

“Complexity’’ among other factors, is the most common one.

Simply put, the more complex your app is, the more it will cost.

This is because it eats up more time of developers and efforts, ultimately leading to increased cost to make an app like Amazon.

2. Features

Features can make or break your app’s success.

If you choose some basic features for your apps like user login, push notification, in-app chat, etc., the cost may not be that high and you can get an app within your budget.

But if you integrate some advanced features such as artificial intelligence and biometric authentication, this will surely increase the cost, affecting your planned budget.

3. Platform

One of the most important elements of app development is choosing the right platform.

There are generally two options, i.e.

• Native App Development
• Hybrid App Development

They both have their own pros and cons, which we will discuss some other day.

As of now, the platform you choose affects your costs, such as Native app development, which may be costlier than hybrid app development.

4. Development Team

In a tech-driven world, it will not be hard to find an app developer for your idea.

But what will be hard for you is to find one within your budget.

See, several countries offer quality development work; some have high charges, and some are quite affordable. For example, developers from the USA will charge you more than other countries.

Here is a small breakdown of the hourly rates of developers across different countries:

5. Developer Expertise

A developer’s expertise plays a crucial role in creating an app like Amazon.

If you go for a junior-level developer due to cost, you might get an app with loose code and bad security, whereas going for a skilled team that charges you a competitive price will affect the cost but will be good for your project.

This is why a developer’s expertise and the selection of developers might increase the cost to hire an app developer.

Enough about the Amazon clone app development costs and investment required.

Time to look at another important factor that is:

Monetization Models for a Marketplace App Like Amazon

Beyond everything else, what drives investors to develop mobile apps? The potential for high returns. Right?

Now, to recover the investment done in eCommerce app development and make substantial revenue, you need to have some app monetization strategies in your app.

We’ll get to know them in this section:

• Commission-Based Model

To develop a marketplace app like Amazon and earn from it, Commission is a classic monetization strategy. This way, you can earn a percentage of each sale facilitated through your app.

This incentivizes attracting high-value sellers and increasing overall sales volume.

• In-App Advertising

You can partner with advertisers to display targeted ads within your app.

With this method, your third-party business can leverage your app, and you can achieve revenue through impressions, clicks, and even conversions.

It’s a great app monetization strategy that can help you earn good revenue from all your users.

• Product-Listing Fee

A product listing fee is a fee that is charged by online marketplaces like Amazon to sellers in order to list their products on their platform.

Basically, it’s essentially the price one has to pay to showcase their wares to the marketplace’s vast audience.

These are some tried and tested methods to ensure that the app generates some regular income for you and helps you survive in this competitive market.

Want to Build an Online Marketplace App Like Amazon? Nimble AppGenie Will Help

If you are curious to transform your idea into a reality, you need the guidance of a renowned online marketplace app development company i.e. Nimble AppGenie.

We have the expertise and skills that you require to launch a successful Amazon-like app.

As a leading industry, we are always passionate about building user-friendly and secure eCommerce platforms that drive high customer satisfaction and sales.

Hire mobile app developers from us. And, get started today!

Conclusion

Building a successful e-commerce marketplace app like Amazon requires careful planning, development, and execution.

By considering the factors that affect development costs and choosing the right features and functionalities, you can create a user-friendly and profitable app.

If you have made up your mind and are looking for a helpful hand, Nimble AppGenie is right here to serve you with the best.

FAQs

Niketan Sharma

Niketan Sharma, CTO, Nimble AppGenie, is a tech enthusiast with more than a decade of experience in delivering high-value solutions that allow a brand to penetrate the market easily. With a strong hold on mobile app development, he is actively working to help businesses identify the potential of digital transformation by sharing insightful statistics, guides & blogs.