Marketplace App Development Cost: A Pricing Guide for Marketplace Website

Do you know?

“In the first quarter of 2021 there were 90.65 million active buyers, an increase of 89.9% over the same period in 2020? 

(courtesy: Etsy)

Marketplaces have changed how businesses operate today and how people purchase. The development of a marketplace app necessitates several costly services. Do you know the cost to build a marketplace app? Read on to find out more.

What is Marketplace?

A marketplace is an economical online channel of distribution for products and services. The price might vary greatly because several merchants may frequently offer the same product. Simply said, a marketplace is an online store that provides information on goods and services provided by third parties and serves as an e-commerce platform.

Types of Marketplaces

Vertical Marketplaces

Vertical marketplaces have exclusive vendors with niche product offerings and top-tier merchants. For instance, listing a house for sale or rent on Zillow is free. The platform works with many owners and brokers, but its services also include renting, buying, and selling apartments.

Horizontal Marketplaces

Horizontal e-marketplaces provide a variety of products and services for sale, all sharing the same trait. For instance, Etsy offers handmade goods in eight categories.

International Marketplaces

The global marketplace provides a wide variety of products, including books, furniture, groceries, toys, clothing, software, appliances, and much more. Customers who value quickness and inexpensive prices are the target market for this kind of online marketplace.

Monetization Models: How Do You Want to Generate Profit?

If you intend to start an online marketplace, you should carefully choose your method of profit generation.

Here are some options:

Fee for Customer Contact

To match the performer with a possible customer interested in its services, the marketplace charges a fee. This choice may not necessarily ensure a profitable transaction. Paying the proprietor for reaching out to customers or producing leads is a common business concept used in many modern marketplace platforms.

Membership Charges

This model assumes that certain or all users of the marketplace must pay a certain amount of money to enter the system and have the chance to draw in new customers or suppliers.

Featuring Advertisements 

Vendors can secure a more advantageous positioning for their goods or services by featuring them. Advertising is comparable to this concept. Nevertheless, in this instance, advertisements are often posted on the website for free, and merchants can pay the marketplace to have their listings appear in a higher and more visible position on the website: on the homepage or at the top of the listing categories.

Fees for Every Transaction

Setting up fees for each financial transaction is one of the strategies that are most frequently used to monetize an online marketplace. Sellers who list their merchandise strongly appreciate this form of monetization. This is because by using them, they are not charged by the online platform until they make their first profit.

Technology Stack for Marketplace Website Development

Here are some technologies to be used for e-commerce and retail software development:

  • Frontend: The website’s front end is a client-side component. It includes the whole user interface, including buttons and menus. Examples include Webstorm, Angular, and Javascript. 
  • Backend: The platform’s back-end, which is hidden from the user and is a server-side component, gathers, settles, and makes all the data from the data access layer available upon request. It is crucial for the smooth operation of all user-side functions. Express 4, EC2, MySQL, and Node.js are a few examples.
  • Integrations: We often employ third-party services to integrate the solutions into the product. Developers may link various apps through API integration. For example, Twilio, PayPal, S3, and Stripe.

 Start with the MVP (Minimum Viable Product) Version of Your Marketplace Website

The cost of developing a marketplace website can be better understood by creating an MVP. The basic elements your project needs to function are what determine it. It’s normal to start a website architecture with an MVP version. Only the most essential components from the MVP are included; you may later add enhanced functionality. Since you start receiving feedback more quickly after the marketplace is in motion this is true. Likewise, consider what may be improved or added to the Marketplace website.

Cost to Build a Marketplace Website

A marketplace website may be built for about $41,200. It is based on a rate of $50/hour, which is accurate for Estonia and central Europe.


How did we arrive at this figure? It’s straightforward: the more hours a developer spends on a website, the more money it costs. 

How Much Does It Cost to Build a Marketplace App?

To ensure that web pages appear properly on all platforms, including smartphones, add an adaptable design.

Generally, a Marketplace app development cost ranges between $41000 to $280000 and up. Everything depends on how complicated it is, what features it has, and the region where you hire the developers. In addition, the recruiting method used affects costs as well.

There are three primary types of hiring you may select from:


Even though this option is the most affordable, you cannot rely on freelancers to meet your deadlines, adhere to your standards, or provide the final products of the highest calibre. They work well for simple technical tasks, but not for website creation from scratch.

Internal Team

Here, you are responsible for overseeing the project as well as hiring specialists to put together the team. This option has the largest cost of all since it necessitates several additional costs, such as the purchase of equipment, regular office salary payments, and office rental fees.

Outsourcing Firms

When you outsource a project, a tech-savvy professional will handle all website development and project management tasks. Businesses frequently pick this option since it is cost-effective, you only pay for the work that is completed, and you can be sure of the product’s quality.

Final Words

KrishaWeb is a software development company that has a wealth of experience in several industries, including fintech, healthcare, and streaming. As a trustworthy technology partner, we provide an extensive range of customized IT services and digital products to help you resolve your business challenges and objectives. We have assisted startups, SMBs, and enterprises to meet their goals in the B2B, C2C, and B2C marketplaces with their extensive expertise and software development services.

Hire the right Marketplace Website Development Agency with confidence

Recent Articles

Browse some of our latest articles...