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Online shopping continues to grow at an unprecedented level. As a matter of fact, 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.
We will discuss the following types of online marketplaces with their features and costs:
With no-code marketplace solution like Shipturtle, a basic subscription plan starts from $149/month. You will also have to account for Shopify costs for cart functionality.
The cost estimation is based on the website's complexity levels.
Click here to check out successful Shopify stores converted into multi vendor marketplaces using Shipturtle app.
Simple Marketplace Website: Anywhere upto $2000
A small niche marketplace focusing on a specific product category.
Key features:
Moderately Complex Website: Anywhere between $2000-$10,000
A regional marketplace offering a variety of products.
Key features:
High-End Marketplace Website: Anywhere beyond $300,000
A national or international marketplace like Amazon or eBay.
Key features:
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 including
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:
Check out our guide on how to build marketplace for listing used goods like eBay.
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:
Check out our guide on how to build a P2P rental marketplace platform.
Building websites like Amazon, or eBay or Airbnb is a continuous development and improvement process.
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:
Time taken to build a website like Udemy and Coursera:
I. Building costs of a website like Amazon, or eBay: Anywhere between $50000 to $150000
II. The cost of developing a website like Airbnb: Anywhere between $100000 to $150000
III. The building cost of a website like Udemy and Coursera
IV. The cost of making a website similar to Booking.com or Expedia
V. The building costs of a marketplace like Upwork or Fiverr: Anywhere between $30000 to $50000
VI. The cost of creating a website like Zillow: Anywhere between $60000 to $80000
VII. The cost of creating a marketplace like Foody: Anywhere between $25000 to $50000
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:
Time taken to make a website similar to Booking.com or Expedia
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 building costs of a marketplace like Upwork or FiverrTime TakenAnywhere between $30000 to $50000If you build an MVP freelance marketplace then it could take approximately 3 to 5 months.
Time taken to build an MVP freelance marketplace like Upwork or Fiverr could take approximately 3 to 5 months.
Check out our guide on how to build a service marketplace.
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:
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:
Time taken to create a website like Zillow or Foody: Anywhere under 6 months
Check out our guide on how to build a C2C marketplace.
Marketplace Development Cost From Scratch
Admin Panel
Front-end Development: $4,285
Back-end development: $5,685
Project Management: $1,780
Quality Assurance (QA): $900
UI/UX Design: $3240 (one-time)
User Account
Front-end Development: $7,790
Back-end development: $7,340
Project Management: $2,700
Quality Assurance (QA): $1,360
UI/UX Design: $3240 (one-time)
Marketplace Development Cost From Scratch
Seller Account
Front-end Development: $6,680
Back-end development: $6,805
Project Management: $2,440
Quality Assurance (QA): $1,220
UI/UX Design: $3240 (one-time)
Listing Details
Front-end Development: $7,840
Back-end development: $6,640
Project Management: $2,580
Quality Assurance (QA): $1,300
UI/UX Design: $3240 (one-time)
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In contrast to such lengthy timelines & exorbitant costs, here is a cost-effective multivendor marketplace builder that provides 400+ workflows for vendor inventory sync, order management, shipping, payouts and more. This results in a guaranteed launch time of just TWO days! It may take a little longer for customization.
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.
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 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.
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 to meet your business needs.
There are various types of marketplaces to consider. For instance, Vertical, Horizontal, or Global marketplace. When you develop a website, your marketplace type will decide the overall cost of building the platform 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.
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.
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.
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.
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.
Get advanced functionalities like C2C, reverse bidding, booking & scheduling options along with advanced shipping, configurable vendor management, payment features, and more. Install Shipturtle today from the Shopify App Store and enjoy a free trial to experience its benefits firsthand.
Want to learn more about how Shipturtle can benefit your business? Book a personalized demo with our sales team.
Experience the power of Shipturtle for free. Start your trial today and discover how it can transform your Shopify multivendor store!
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Articles from Team Shipturtle include contributions across departments - Tech, Marketing, Sales, Finance, HR - to share varied viewpoints and present a holistic picture.
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