How Much Does it Cost to Build an Online Marketplace?

In today’s day and age, the internet is a prime source for promoting your business. Marketing that is carried out using the internet is reaching out to the majority of people around the world in exchange for minimum cost. This is the ideal time for anyone to build an online marketplace.

If you have new app development ideas to develop an e-commerce marketplace like Etsy, Amazon, eBay  but does not have any ideas about 

  • How do I create an online marketplace?
  • What is a marketplace business model?
  • How much does it cost to build an online marketplace?
  • Which is an example of an e-marketplace?
  • How does a marketplace make money?
  • Which is an example of an e-marketplace?

and what are their requirements, then you have to find the best ecommerce Marketplace Development Company.


Developing an online marketplace website and mobile app for e-commerce is a trending business idea with global e-retail sales of $3.5 trillion in 2019 worldwide and the global retail sales to be reach around 15.5% by 2020. – Statista

How do online marketplaces work?

While the concept of online marketplaces sounds appealing to the entire community of entrepreneurs around the world, most of the Startups & entrepreneurs are unaware of the cost to build an online marketplace.

The website and mobile app development is booming, hence to create an e-commerce marketplace, you might have to spend a lot of money to create a P2P marketplace website like Etsy, Amazon, or eBay.

Online marketplaces serves as a platform wherein you could review, compare, and purchase items or offerings that are sold by numerous vendors om the forum. Generally speaking, the marketplaces are the mediators between the consumers and the sellers.

Before we go any further and discuss the cost to build an online marketplace, let’s get you familiarized with the different types of marketplaces.

What are the different types of marketplaces?

Types of eCommerce Marketplace

The three major types of e-marketplace that exist. They are as follows: 

Vertical e-market

These e-commerce marketplaces are developed to focus on one area or niche. These types of online markets offer goods from several vendors but of a similar type.

Vertical marketplaces are ‘exclusive clubs’ that provide a greater depth of products for consumers from expert sellers.

For example, App like Zillow offers the services of buying, renting, or selling houses saving the time, money, and labour of the consumers. Another great example we can are aware of is marketplace Grocery app, that only offer grocery items.

Horizontal e-market

These kinds of e-marketplaces are created to offer goods from a few categories with a secondary character in common.

In other words, these markets offer goods or services in several categories but with one common characteristic through the online platform.

For instance, Etsy sells handmade items in eight categories.  

Global e-market

These types of e-marketplaces are developed for delivering items or services from a wide range of categories to the consumers.

Global marketplaces have everything under one roof – books, furniture, food, grocery, apparel, toys, software, music, gadgets, and an entire lot more. That’s what makes global marketplaces unique and popular than other types of online e-marketplaces. 

They consist of several market segments to cater to a broader set of audiences. These types of online marketplaces are concentrated on people striving for maximum speed and minimum price so that the time and effort of consumers stay minimal.

There are many categories of products, and sellers who compete in price and offers. Amazon is that the standard example of the global online marketplace. 

What are the Monetization Model / Marketplace Business model?

Marketplace Monetization Model

Well, There are standard monetization model for ecommerce marketplace, here are the few:

  • Commission
  • Subscription fee
  • Listing Fee
  • Featured listings
  • Advertising

How would I start an e-commerce marketplace?

Now you have some guidance about the type of online marketplace and how the works. Let’s understand some steps to start and launch your own b2b/b2c marketplace for your industry. In this guideline, I mentioned the main steps while launching a marketplace:

Steps to Start an eCommerce Marketplace

  1. The Marketplace app Idea– Find out the idea which works best for you and your customers
  2. Co-thinkers/co-founders– Find the best Partner who is either technical or sales/marketing expert
  3. Detailed business plan– Create a Detailed business plan and start implementing 
  4. Pitch Document– Meet with the MBA’s & Experts on upwork to create a pitch document for funding
  5. Tech team– Choose the Best App development company to develop your own app
  6. Wireframe– Ask Your technology partner to build an awesome mockup and wireframe for your ecommerce marketplace
  7. Funding– Connect with investors, but First Choose your Family, friends to Funding & Investment
  8. Development phase– Create Complete RFP & SOW before you start developing a marketplace for B2B, B2C, P2P
  9. Beta Testing– Around your circle Start testing your product first before going on Final testing
  10. The Launch –Create the latest marketing plan to launch your ecommerce marketplace
  11. Marketing– Select the Best Digital Marketing consultants or Famous marketing agency to viral your platform

What do I need to build an online marketplace and how much will it cost me?

To evaluate the final price for building an online marketplace, you need to take into account many factors that form the marketplace development cost & expenses. Namely, the App development cost and estimation depend on the What type of solution you choose to start your on-demand marketplace.

Let’s take a look at the core ecommerce marketplace development elements you should take into account and how much does it cost to you.

Marketplace App development

First of all, you need to define the Development platform and you want a ready-made marketplace solution, or you want to develop a marketplace from scratch for creating a successful online marketplace. There are several powerful solutions you can choose from:

  • Ready-made Marketplace solution
  • Custom Marketplace development

Most commonly, the first option is for the startups who have low cost budget and a fixed price, but provides limitations in scalability and may include unnecessary features you will never use.

In Eastern European countries and Asian countries, the mobile app development cost is less expensive compare to USA, UK & Canadian Regain… For example, if you decide to turn to Best Indian, Ukrainian software development companies, the cost to build an online marketplace on an average would be $25-49 per hour.

marketplace app development

Functionality scope

And of course, the cost of marketplace development depends on the functionality you want to implement.

I recommend you to pay attention to the following features as they are of prior importance for an e-commerce website and mobile app.

  • Authorization and roles
  • Personal account
  • Listing

The must-have features for admin panel include: 

  • Real-time updates from a single dashboard
  • User management solutions
  • Options for charging a commission
  • Analytics and Reports
  • Stock visibility and management 
  • Customer management
  • Invoicing Solutions
  • Itemizing by Category
  • Tax management

The must-have features for seller panel include: 

  • Social Connect and Sign-up Login
  • Display of vendor-specific store URLs
  • Order management solutions 
  • Stock management
  • Offers, promotions and discounts
  • In-app chat system
  • Transaction management
  • Reports and analytics

Must Require Buyer Panel features:

  • Registration/Authorization
  • Management of personal profile
  • Client support for connecting with sellers
  • Listings
  • Search engine for easy search
  • Shopping cart
  • Wishlist
  • Reviews and testimonials
  • Integrated payment functionality
  • Tracking of customer order

What are the Technology Stacks to build an ecommerce marketplace?

  •       Programming languages: Java, PHP, Ruby
  •       Mobile app development: iOS – Swift, Android – Java, Kotlin, cross-platform – React Native
  •       Front-end: Angular, ReactJS, HTML5, CSS
  •       Back-end: Node.js
  •       Payments: Stripe, Braintree, and PayPal
  •       Recommendations: Machine learning algorithms
  •       Analytics: Google Analytics
  •       Marketing Automation: HubSpot, MailChimp (for e-mails)
  •       Infrastructure: Amazon Web Services
  •       Databases: PostgreSQL, MySQL, MongoDB. 

How to Building a Marketplace from Scratch?

You can develop their marketplace from scratch by making use of programming languages. If you create your marketplace from scratch, you can build exactly what you have dreamed of. The cost to build an online marketplace from scratch can be high; however, it also helps you customize the output to your heart’s content. 

You can create your marketplace if you are a skilled coder, but it is difficult for you to code all language. So it is always recommended to choose an expert marketplace development company.

Here is what you need to live your application & website completely

eCommerce Website/ Portal

Ecommerce websites are one of the most important necessities for any online market place. A website can be seen as proof of authenticity. 

It is almost essential for any e-marketplace to have a website that can help the users to engage directly. The interface of the website should be simple yet unique, and this will help keep the consumers engaged.

eCommerce App Development

Through an app, your customers can easily purchase products and engage with you on the go. There is no need for a laptop or desktop; they can easily interact with your store via smartphones.

This will not only be beneficial for the store owner and customer, but it is also beneficial for the sellers. Sellers will be able to see their order history, sales, or contact the admin through the mobile app.

Backend Development

The process of using data from the backend to cater to the consumers can be time-consuming but is extremely essential. The information stored in the backend enables you to understand the need of your consumers and use the information provided by them to the best of your abilities.

Paying attention to developing a structured backend can help you run your online marketplace smoothly and effectively. This might add to the cost to build the platform, but it is an integral part of the online marketplace and cannot be ignored. 

eCommerce Development

How much Does it Cost to Build an Online Marketplace?

The cost of your marketplace may vary from one marketplace to the other. It depends upon the functional set that the creator of the marketplace chooses. The proper development of an online marketplace requires the efforts of various specialists and includes UX and UI design, layout design, project management, backend and frontend development, and quality assurance.

On average, the cost to build an online marketplace website can vary from $10000 to $25,000, which may vary based on design and features available. However it’s not possible to estimate the cost of the website without any project details.

The process of developing a basic functioning website can usually add up to 800-1000 hours and the process can last for an average of 3 months. Due to this, the estimated cost of the marketplace development of a basic functional set can cost you around $10K.

However, if you decide to create a complex solution or in simple words add some new or different functions to the existing site, you need to be ready to bare some extra expenses, for instance, 20-30 work hours for the ecommerce development of new functionality will increase your expenditure. A marketplace with a vast set of functionalities may amount up to $25K.

The development of a mobile app on an average takes about 400 hours and might cost around $25K. The figures are likely to vary depending upon the functionalities that you ask for.

The cost to build an online market place varies according to your needs and wants. And hence we cannot provide you with a specific number. However, a simple online marketplace may cost lesser as compared to a highly specific or specialized marketplace.

Depending upon the method of developing your use, you can be charged on an hourly basis which can range from $25 to $60 on an average.

Still, If you are not clear with your idea and don’t understand the exact cost to develop a marketplace?

Let’s Connect with our experts and validate your app idea and Final costing of ecommerce marketplace development.

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    Ronak Patel

    Ronak Patel, the CEO of Aglowid IT Solutions, is a NASSCOM member and a published writer in top tech publications like DZone and Hacker Noon. With a background as a full-stack developer, he brings a wealth of technical expertise. Ronak's marketing acumen complements his technical skills, ensuring the delivery of innovative IT solutions that excel in the market.

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