Build an MVP or Custom Marketplace Development
Online shopping continues to grow at an unprecedented level. Over 80% of people purchase something or the other from an online marketplace. Moreover, consumers spent a whopping 3.5 trillion US dollars in a single year on various online marketplaces.
Consumers are constantly looking for shopping convenience, a user-friendly interface, and entirely smooth online marketplace platforms. The Amazons, the Etsys, and the Fivver of the e-commerce world are fulfilling the demand.
But have you ever wondered, what could be the ideal cost to build a marketplace? What is the actual cost of building a marketplace website in 2024?
There are a lot of factors to develop a marketplace website, for instance, business model, and software solution providers to create a marketplace website.
Online builders with no-code options offer a host of flexibility to create a website and build a marketplace MVP. Building a marketplace from scratch would involve a complex interplay of strategic planning, technical development, and market validation.
In this article, we will dive into the topic and learn the cost of developing a marketplace while also examining various factors that affect the cost incurred to build an online marketplace.
Note: All mentioned cost to be considered on yearly basis.
How Much Does It Cost to Build an Online Marketplace Website?
The cost estimation is based on the website’s complexity levels.
| Website Complexity levels | Estimated Costs in Approx |
| Simple Marketplace Website
A small niche marketplace focusing on a specific product category. Key features:
|
Anywhere upto $2000
With no-code marketplace solution like Shipturtle, a basic subscription plan starts from $149/month |
| Moderately Complex Website
A regional marketplace offering a variety of products. Key features:
|
Anywhere between $2000-$10,000 |
| High-End Marketplace Website
A national or international marketplace like Amazon or eBay. Key features:
|
Anywhere beyond $300,000 (Could be higher as well) |
Click here to check out successful Shopify stores converted into multi vendor marketplaces using Shipturtle app.
Development Cost for 7 Types of Online Marketplaces
There is no one-size-fits-all approach to building an online marketplace. The total cost of building an online marketplace can depend on many parameters. Here are various types of online marketplaces with their features and costs.
I. How much does a marketplace website like Amazon and eBay cost?
Amazon and eBay are some of the largest marketplaces in the world. Amazon has the highest marketplace capitalization in the online store segment globally. It has sold over $500 billion in products and boasts over 300 million customer base.
Features of these online stores:
- Dedicated seller section including seller verification, digital store creation, product uploads, login/log-off options, order management, shipping integrations, and refund status.
- Dedicated customer sections where customers can search for products, place an order, and initiate digital payments. Customers can sign in and create their profiles for a smooth customer experience.
- The admin section is where you will find fees, content, advertisements, product management information, user analytics, and reports are also provided, support desk and notifications are also managed in the admin panel.
| Building costs of a website like Amazon, or eBay | Time Taken |
| Anywhere between $50000 to $150000 | The website development is time-consuming and can keep going and improving over a year. |
Check out our guide on how to build marketplace for listing used goods like eBay.
II. How much does it cost to build a marketplace website like Airbnb?
Airbnb is a global platform that allows customers to rent their properties and apartments to customers who are on vacation, staycation, or trip. They provide comprehensive hospitality services. The website is perfectly built where property owners list out their space with price tags, amenities, and features.
Airbnb takes a commission and facilitates the entire transaction. From booking to payment, everything is managed seamlessly on the platform. You can easily find numerous properties listed in your preferred location.
Features of the website:
- Property owner dashboard, where owners can list out their properties, add property images, and add features like parking space, swimming pool, etc. They can also have access to the charges and prices they offer for renting it out.
- The customer panel is where after sign-in, you have access to properties in the location you search for with the price tag and other details. Entire booking and payments are done on the platforms.
- While the hosting and taking care of the guest is on the owner.
- The platform features a Google Maps API, third-party integrations, a built-in payment system, search and filtering options, a PostgreSQL database management system, user profile switching, and property listings.
| The cost of developing a website like Airbnb | Time Taken |
| Anywhere between $100000 to $150000 | It can vary and is a continuous development and improvement process. Over a year it could go |
Check out our guide on how to build a P2P rental marketplace platform.
III. How much does it cost to build a website like Coursera or Udemy?
Online education has given rise to EdTech platforms like Coursera, edX, Allison, and Udemy. They are one of the largest educational marketplaces in the world. The platform is based on the Massive Open Online course models. Anyone from students, learners, and professionals can acquire useful skills like learning coding, a foreign language, getting a higher education, or earning a certificate from a renowned university.
These websites like Udemy and Coursera are generally created using custom marketplace development solutions. These educational websites also create and build a marketplace app, so that students can have access to educational content on the go and their smartphones. The marketplace must have the following features.
Features of these EdTech websites:
- It has a teacher dashboard where teachers and professors can create and upload courses on the platform.
- They can also schedule the course as per the timings and dates and give detailed project management guides to the learners.
- The student dashboard features a wholesome course search option that allows students to find all the available courses for their subjects.
- Each course has its dedicated page where students can enroll, access detailed course information, watch lessons, submit assignments, track their scores, and write reviews and feedback. The enrollment process is easy, and the payment system is integrated.
- Students can access a personalized dashboard to manage their current, past, and future courses, view earned certificates, check their payment history, and more.
- There is also an admin section where fees, management information, reports, timings, notifications, and other functionalities are monitored.
| The building cost of a website like Udemy and Coursera | Time Taken |
|
|
IV. How much does it cost to build a travel marketplace similar to Booking.com or Expedia?
This type of online marketplace website allows consumers to stay as per their location and requirements. You need to book a hotel of your choice, choose the room type and amenities, and make the payment. The entire transaction takes place on the platform itself. The cost of making a hotel e-commerce website can vary as per features and integrations.
Features of these types of websites:
- Hotelier section, where hotel owners list their hotel rooms, room prices, and availabilities.
- The guest section has a host of functionalities and features like guest profile, reservation panel, room availability with dates, and price tag. From booking a hotel to payment and canceling with a refund, all happen on a single marketplace platform.
- The admin section has control of the user and fee management, CMS, reports and so much more.
| The cost of making a website similar to Booking.com or Expedia | Time Taken |
|
|
V. How much does it cost to create a freelance marketplace site like Upwork, Fiverr, or Freelancer?
Today, gig or freelance marketplace has become a hit among individuals, brands, and enterprises looking for customized and specialized solutions like content marketing needs, social media creation, website development, and so on. Freelance saves costs for companies while also giving them an experienced and skilled professional. The freelance online marketplace in 2024 has become a hit among recruiters.
Features of freelance or gig websites:
- The client section is where work requirements or job postings are done. Order management can also be tracked.
- There is a section for job or work finders. The job details page includes the description, requirements, and client information. To apply for a job, users can submit proposals or place bids. Proposals management allows users to view invitations and manage past and current job orders.
- My job/work/contract section provides details for each work/job, which can be paid hourly using an online web tracker or at a fixed price with escrow protection. The cost of creating an online site like Upwork or Fiverr will vary on many parameters.
- The admin panel is where you can keep track of user management, data and analytics, fee management, and more.
| The building costs of a marketplace like Upwork or Fiverr | Time Taken |
| Anywhere between $30000 to $50000 | If you build an MVP freelance marketplace then it could take approximately 3 to 5 months. |
Check out our guide on how to build a service marketplace.
VI. How much does building a real estate marketplace site like Zillow cost?
Zillow is a famous online real estate marketplace that allows consumers to buy, rent, and lease out properties to prospective clients. They provide a deep understanding and information of the property that aligns with the consumer demand and need.
Features of the platform:
- The real estate platform like Zillow includes features such as map integration, advanced search and filtering options, listing profiles, user registration and authorization, and push notifications.
- Moreover, the platform allows consumers to get comprehensive information about the property they are interested. The information includes, which side the property is facing, what are the amenities, what are the square feet area and the overall estimated cost for the property.
| The cost of creating a website like Upwork or Fiverr | Time Taken |
| Anywhere between $60000 to $80000 | Under 6 months |
VII. How much does it cost to create an online marketplace similar to Foody?
Foody is a global marketplace for chefs and cooks. It is a digital platform that brings chefs, culinary, and cooks to individuals looking for customized, local food options. It is also a great online store that connects sellers, including local farmers, food producers, and restaurants, making a vast selection of food products in one convenient location.
Features of the website:
- The foody platform has a registration dashboard with two account types for foodies (home cooks) and creators (chefs and influencers), allowing seamless sing-ins.
- The home page includes blocks showcasing featured recipes, creators, and collections.
- Users can create recipes with pictures and videos, rate and review recipes and collections, and access an admin panel with analytics and management tools.
- Moreover, the platform integrates modernized payment systems like Stripe on the platform itself.
| The cost of creating a marketplace like Foody | Time Taken |
| Anywhere between $25000 to $50000 | Under 6 months |
Check out our guide on how to build a C2C marketplace.
Breaking Down The Marketplace Development Cost From Scratch
The table below gives an estimated approximate cost breakdown of a website building process for you to get a better picture.
| Website Building Stages | Front-end Development | Back-end development | Project Management | Quality Assurance (QA) | UI/UX Design |
| Discovery Phase | $2,475 | $2,475 | $900 | $750 | $3240 |
| Homepage Design | $12,380 | $12,690 | $4,480 | $2,250 | |
| Listing Details | $7,840 | $6,640 | $2,580 | $1,300 | |
| Seller Account | $6,680 | $6,805 | $2,440 | $1,220 | |
| User Account | $7,790 | $7,340 | $2,700 | $1,360 | |
| Delivery Phase | $10,030 | $7,090 | $3,060 | $1,520 | |
| Admin Panel | $4,285 | $5,685 | $1,780 | $900 |
What Are The Factors That Influence The Cost of Building a Marketplace Website?
The marketplace website development cost can depend on many factors. However, roughly and depending on the complexity of the website, the cost to build an online marketplace business site could vary anywhere between $30000 to $300000. Here are the factors to consider for your website building costs.
Ready Made or Customized Website Development from Scratch
If you are planning to get a ready-made marketplace app development provider, then the overall cost will depend on the software application and fees. If you choose to hire a freelance website developer, who will build your own marketplace website from scratch then the cost will vary as per requirements.
Building a website through ready-made templates could cost anywhere between $10 to 500 US dollars. Hiring a website developer could cost you anywhere between $500 to $150000. You can also hire a developer on an hourly basis. It would cost you between $50 to $100. They can help build a customized website solution.
Technological Stack Factors
The building block of your marketplace business is based on the technological stack that may include programming, coding languages, databases, and hosting services. If you choose open-source technologies then the cost of creating the online store would be low. Costs for licensed software and propriety software are comparatively higher. On the other hand marketplace website templates are affordable but lack many features. You can make the marketplace store as per your business needs.
Type of Marketplace
There are various types of marketplaces to consider. For instance Vertical, Horizontal, or Global marketplace. When you develop a website, your marketplace type can decide your overall building of the platform costs and investments. From the three building a global-like marketplace will incur a higher cost, have more technicality, and are generally loaded with a host of features.
| Types | Serving Segment | Marketplace Examples | Cost Parameter |
| Vertical Marketplace | They have many sellers on the platform but the products sold are of a specific type. | Zillow, Chegg, Etsy, Uber | Comparitelivly low cost of setting up this type of online store. |
| Horizontal Marketplace | Offers goods and services in different categories with many sellers but with common characteristics. | Poshmark, Dogvacay, Dote, Couchsurfing | Medium investment cost for creating a horizontal marketplace. |
| Global Marketplace | They offer multiple sellers and a huge range of products and services across the continents. | Amazon, Alibaba, Walmart,eBay, Airbnb | The high investment cost for creating a global marketplace. |
Type of Business Model
When building your marketplace niche business models are very important, If you want your business to focus solely on providing products and services to companies then the B2B model is best. For serving consumers then B2C or direct consumer bases then C2C. The cost to develop a marketplace solution also depends on these factors.
| Business Model | Serving Segment | Examples |
| B2B | Allows goods and services to be sold to companies. | Mercateo, Alibaba, Rakuten |
| B2C | Facilitating goods and services to consumers. | Bonanza, eBay |
| C2C | People offer goods and services to other people. | Poshmark |
| P2P | Intermediator involved in facilitating the sale and purchase of goods and services. | Etsy, Uber, Upwork |
UI/UX Designs, Maintenance, and Running Cost
When you develop even a basic marketplace website, you will need to integrate a lot of tools and functionality into the website. For example payment integrations, shipping options, product listings, maintaining the website, inventory management costs, UI/UX design costs and updates and so much more.
These are a few of the primary running costs and factors that could add to your overall online marketplace development cost. For example, the cost of a customized marketplace design (UI/UX) could cost you around $6000 to $10000 approx.
Conclusion
The cost of creating a marketplace from scratch can vary depending on a lot of factors. A simple marketplace website could cost you less compared to a holistic and feature-rich marketplace website. On the other hand, if you hire an agency, or professional then the cost can become very high but using off-the-shelf solutions and customising over it can drastically become low.
However, we have briefly pointed out the cost and features of different types of marketplace websites like Upwork, Amazon, Etsy, Airbnb, and Zillow. All these website building costs are different and as per business requirements. On the whole, a comprehensive marketplace website creation from scratch may cost you anywhere between $150,000 to $300,000. There are ready-made solutions available for $1,600 to build a marketplace MVP.
Book a demo with Shipturtle to understand the scope of marketplace app development cost.
