How much does it Cost to Build an Online Marketplace App?

Do not you think digital dominance has made it necessary for businesses to rely on online marketing? Any business that does not effectively use an online platform risks losing new lucrative opportunities.

In this dynamic and digitally advanced world, it is imperative to have a strong online presence. It lets your brand get the credibility you need to attract more and more potential customers. Along with giving access to your business, an online presence also gives your customers a convenient way to find out more about what you have to offer.

With technological advancements, both small-scale and large-scale businesses can reap the benefits of having a robust web presence. Businesses that do not have an online business presence are regarded as non-existent and antediluvian in the modern and competitive business environment.

Therefore, mobile applications have become an unrivaled source of gathering relevant data and information about the products and services of different companies. Businesses have various options of hiring professional and experienced mobile app developers who can help in establishing an online presence based on functional and versatile applications. Marketing your business online and through applications constitutes your website, SEO, and the optimum strategic use of social media.

Well-constructed mobile applications make it easier for businesses to market their brand and sell products. A properly designed and informative mobile application with well-written content enables potential customers to make informed purchasing choices.

For businesses, the mobile application is one of the phenomenal marketing platforms that give you a budget-friendly way to reach a target audience effectively and efficiently. By interacting with customers directly, getting feedback from them, and updating your online posts will create a positive image for your business. It increases the likelihood of customers and boosts your sales.

Why Mobile Applications Matter For Building A Brand?

During this time of Pandemic, businesses must connect with customers and stay relevant. Online mobile applications give your brand an ideal platform to communicate with customers. It allows you to set the narrative as a brand and set you apart from competitors. A mobile application connects your brand with your customers at all touchpoints. To put your best foot in front of potential customers, you need to consider all the positive aspects of your brand.

Having a substantial mobile application increases your customer awareness and strengthens your brand by building up your credibility. Since customers research your brand before making monetary commitments, they will naturally expect to find your mobile application when they search online. If customers are unable to find your mobile application, they might question the dependability and legitimacy of your business.

Your mobile application displays a sense of professionalism that allows you to prove your experience and stand out against your competitors. Yes, the first and the foremost step to boost the digital presence of your brand is creating a professional and user-friendly mobile. Your mobile application is an incredible asset that allows your customers to find you and inspire them to convert to your brand.

Innovate and put ideas into action

If you are looking for ways to build an online marketplace that acts as a giant income system, then mobile applications are best for you.

Low-performance mobile applications – The average cost of making these types of applications is $250 to $750 per month.

Perfect for:

  • Simple setup and deployment
  • Minimal activity, small user base
  • Testing and staging documents
  • Lightweight tools and applications

Medium performance mobile applications –The average cost of making these types of applications is $750 to $2500 per month.

Perfect for:

  • Production deployments
  • Basic business applications
  • High activity or growing user base
  • The setup and deployment do not involve major complexities.

High-performance business applications – The average cost of making these types of applications is $2500 or more.

Perfect for:

  • Advanced business applications
  • Production deployments
  • Intricate setup and deployment
  • Growing user base or high activity

App development cost varies from client to client. Different clients have different budget constraints.

Projects Budget Schedule 
Prototyping – standalone program – single-feature tool – Proof of concept $25k to $ 125K 6 to 12 weeks 
Takeover of existing software – software remodeling – Project rescue $75k to $350k 3 to 8 months  
Simple tool – minimal flexibility $75k to $250 k 2 to 5 months 
Polished interface – complete feature set – $250 k to $1M 5 to 10 months 
Requires lots of flexibility and configuration capabilities $1M to $5M 10 TO 18 months 

In terms of monthly cost, it varies on how fast you want to move and what stage your project is in. In general, clients tend to pay for speed. To move faster, businesses need a team of experienced and professional people.

Developers throughout the globe need to perform several tasks and go through various development phases for building a successful and functional mobile application. Well, this article covers all the crucial factors that determine the overall mobile app development cost.

Given below are the factors that affect the overall development cost

A mobile app development project might take hours or years to complete. There are a plethora of factors that contribute to the overall mobile app development cost.

  • Type and size of the application
  • Platforms and devices
  • The location and structure of the development team
  • Designing
  • Features and functionalities
  • The overall cost of maintenance and marketing

Type and size of the application

The cost of mobile app development depends on the size and complexity of the mobile application. Mobile applications are divided into three categories. Small applications, medium applications, and large applications.

Small applications are peculiarly designed for single platforms with limited functionalities and standardized user interface components. Neither these applications require backend development nor API integration. For instance, a weather application is pre-installed on almost every phone.

Medium level applications are also developed for a single platform but it includes customized user interface and payment features. Applications that are built for more than one platform are less complex and follow under this category. Sotheby’s apple application is an impeccable example of a medium-sized mobile application.

Large or intricate applications tend to have more features including multi-language support, professional designing, customized animations, and more. These types of applications require backend development processes for storing and managing huge databases.

The cost of developing an app also varies from app to app. Applications include database-driven mobile applications, hybrid mobile applications, mobile gaming applications, native mobile applications, simple functionality mobile applications, and more.

Platforms and devices

The platform or device for building an application affects the overall cost of it. For instance, app development for a single platform costs a lot less than multiple platforms. Similarly, the development of mobile applications for TV and wearable’s also raises the overall cost of mobile app development.

Another factor that is crucial to consider in this category is device generation. Applications that are particularly built for supporting older devices require more effort and time. And therefore, escalates the overall cost of mobile app development.

Location and structure of the team

The overall cost of mobile app development might differ from company to company. A large mobile app development company might charge differently than a specialized app development firm. In big organizations, different departments are responsible for different purposes and hence, the cost is relatively high.

On the other hand, a startup company offers app development services that have just one person to perform all the tasks therefore, it costs less. Additionally, the location of the firm and the qualification of the team working on your project matters to a great, great extent. A basic and primary app development team comprises a project manager, QA engineer, programmer, UI/UX developer and the extended team includes 1 project manager, 2 app developers, one back-end developer, one system administrator, and 1 QA engineer.

So if your project is diversified and the app development process is intricate, then it might need a big workforce. Hence, that increases the overall app development cost.

Design of mobile app

The design of a mobile application is the foremost thing your users come across with. So, it should be enthralling and well-constructed. Mobile app designing includes logos, icons, wireframes, and user interfaces. Experience, location, complexity, and platform of designers and designs are the factors that increase or decrease the cost of mobile app development.

Features and functionalities

A multitude of factors like backend infrastructure, the right content management system, and third-party service integration come under the functionalities of a mobile application. Depending on the client to client and preference to preference, these factors might add or subtract the overall cost of development. 

Apart from this, if users add extra features to the mobile application, then there would be a significant increase in the cost. Here are a few features that businesses seek in a mobile application.

  • Maps integration
  • Payment integration
  • In-app purchases
  • Geolocation
  • Portrait or landscape view
  • Navigation
  • Chat or messaging
  • Push notifications
  • User login
  • Sign up via social media or email

The features might vary depending on different types of applications.

Cost of app maintenance and marketing

These two are the additional costs of an application. Maintenance of an application means releasing new updates for upgrading the functionalities of an application. Aside from maintenance, your application also needs to have marketing strategies that would make your company stand out in a competitive market.

If you have your mobile application requirements or specifications, then the cost of mobile app development goes somewhere in between $15000 to $20,000 for small size applications, $25000 to 30,000 for medium size applications, and $50,000 to $70,000 for complex and intricate applications. However, the overall cost of mobile app development varies on the specifications and requirements of clients that have been mentioned above.

Mobile applications are comprised of a series of various features including features that come from other sources. When applications tend to include standard features from the operating system, those integrations can take additional time and effort. You can always add various integrations to your application’s roadmap. Building too many into the first release can drive up the overall development costs.

Localization

The number of markets in which you plan to launch an application impacts your app development costs. And, it is just not about supporting new languages. Language localization tends to drive up the cost of your project. Forget about the customer support scenarios. There is an immense need for businesses to add more post-launch resources for supporting more and more regions.

Ready to discuss your application idea? Companies throughout the world commence the process with a free consultation where experts tend to review the idea of applications with you. Well, there is no estimated cost.

Types of online marketplaces 

An online marketplace is a website or an application that works as a medium between the customers and companies offering products or services in the B2B and B2C sectors. Market owners do no offer the products and services themselves, they only provide a platform (either website or mobile application) where buyers and sellers interact. 

  • Vertical marketplaces tend to offer similar types of products from different vendors. 
  • Horizontal marketplaces offer various products with similar characteristics. 
  • Global marketplaces do not have limitations and sell all kinds of products from different suppliers. 
  • Hybrid marketplaces are responsible for offering their own products as well as products from other companies while providing a platform for participants to complete their transactions. 

Conclusion

Whether you are building an application internally or through the help of an app development company, this article will help you comprehend the most crucial factors that drive the overall cost of an application.

The truth is until and unless businesses do not have a detailed definition of application’s requirements, they should not begin to estimate the total development cost. But there is an immense need for businesses to make essential decisions during project. Business owners can easily leverage the marketplace business models and build their own unique mobile applications. 


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