How Much Does It Cost to Build an Online Marketplace? [2024]

Online marketplaces have disrupted almost all industries. Do you know the reason behind it? The answer is because it provides value to both customers and suppliers. The more people are going digital, and they search for all services and products online. With more people switching online, the popularity of online marketplaces grows as the perfect spot for buying and selling thingies. 

Nowadays, there are marketplaces for almost everything, such as for selling and exchanging goods, renting, booking, transport services, auctions, food delivery, logistics, job search, beauty products, medicine orders, and many others. And new marketplaces are also emerging with time. You should also leverage this opportunity by introducing your online marketplace by hiring a web development company.

But you might have the question of how much does it cost to build an online marketplace. If you want to know the web development cost, this guide is just right for you to figure out the price feature-by-feature.  

How Your Business Can Take Advantage

Online marketplaces bring the seller and consumers together. This platform serves as a mediator where suppliers provide what they have to offer, and consumers buy products with a transparent payment method by comparing the prices. This allows people to get what they want while sitting on their couch. 

Besides, sellers get access to a much wider audience, which is a boon for small vendors or sellers who do not have a large inventory to check whether consumers will like their products or not. The online marketplace reduces the risks and secure position in the market. And if you own the marketplace, it’s an excellent opportunity for you to earn money without keeping any warehouse or dealing with any other similar issues by just taking a small amount from the transactions by informing the sellers. 

Hope now you have noticed the opportunities and the advantage that the online marketplace app provides. You might have already started thinking of opening your own online marketplace. So hire dedicated web developers from an experienced company to take leverage through your online marketplace. 

Stick to this quick guide and get started with your online marketplace.

Types Of Marketplaces

To find out the development cost of the marketplace, you should know all the types of marketplaces and then decide what you are planning to build. There are a few factors by which these marketplaces are distinguished, such as by offered products, business models, types of participants, and communication means. 

The cost of online marketplace development will vary as you choose the type of marketplace. 

Online Marketplaces that offer products:

 

*Goods and products 

For instance: Amazon, eBay.

*Services

For example Uber, Airbnb, and Booking.

*Media 

Example: MediaMath, Matpra Media Marketplace. 

*Crowdfunding and investment

Example: Kickstarter, CircleUp.

Also, other types such as social networking, entertainment, advertising marketplaces, etc. 

As per the participants:

Business to Consumer (B2C)

This traditional model enables the interaction between the sellers and the consumers. These platforms contain many offers. The best examples of this are the AliExpress, Uber, Lyft. High competitiveness provides benefits for sellers to improve their services and product quality. 

Business to Business (B2B)

Under this scenario, the interaction occurs between businesses. These marketplaces sell bulk orders to help other businesses. This type of marketplace is useful for wholesale shopping & new businesses that seek suppliers. Examples of this type are Alibaba, Made-in-China. 

Customer to Customer (C2C)

This model allows interaction between consumers. Such as one consumer helping others, usually, participants in such platforms, are not entrepreneurs and businessmen. Examples of this model are Airbnb, Handy, Couchsurfing. 

What features that you must include

 

For getting a fully functional MVP version, you need to add must-have features for an online marketplace. Let’s get started with the basic features:

How much does it cost to build an online marketplace?

The cost of your marketplace may vary depending on various factors such as time taken, functional set you choose, and the region for development. 

The development of the online marketplace requires the best experts, effective project management, Appealing UI/UX design, robust back-end, front end development, and quality assurance. 

It takes up to 800-1000 hours to create a website with the basic set of functions, and the development will take 3-4 months, So the rough cost with the basic set of functionalities will lie around $30k to $50K. 

And if you want to add some additional features or integrate trending technologies such as AI, the cost will vary accordingly. 

Hence, for owning an online marketplace, you need experienced expertise, and for that, you can hire web developers from an experienced firm. Here Auxano Global Services can help you as the leading web development company in India, as we have experience in developing online marketplaces for various clients. 

To discuss your project more or to evaluate our expertise, just give us a call, and we will be ready to help you with whatever you require.