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How Much Does it Cost to Develop a Marketplace App LIike Etsy and Amazon

How Much Does it Cost to Develop a Marketplace App LIike Etsy and Amazon

Monday April 29, 2019,

7 min Read

Online shopping is the current trend these days. Not only youngsters love doing online shopping, but people of all ages also enjoy spending their time in the app to purchase their needs from various sellers. Thus, this growing demand for online marketplace app, various retailers and start-up companies have considered developing their own market place like Etsy.

Before we jump into how Etsy and Amazon are designed and the cost of developing an online marketplace app, let us know some significant statistic.

During 2018, 1.8 billion people worldwide purchased goods online. In the same year, global retail sales amounted to 2.8 trillion USD and also the projections have shown a growth of up to 4.8 USD in 2021.

It's quite Interesting, right?

Let us dig some more statistics.

In 2017, ecommerce sales have accounted for 10.2% of all the retail sales happening globally. This number is expected to reach 17.5% in 2021.

So, its obviously clear that today, customers have the power to purchase items from any retailers. That’s the reason why the online ecommerce marketplace app development plays a crucial role in shaping the business goals.


  • Amazon's marketplace provides its customers the option to purchase products directly from them or from the third party sellers.

  • If the items are sold directly from the Amazon, then Amazon is the seller of its record, have the items, and fulfills the orders.

  • On the other hand, if the item is purchased from the third-party seller registered in the Amazon/Etsy market place, the third party seller owns the item and is responsible for the fulfillment of the order.

Nearly half of the items sold in the marketplace app like Amazon and Etsy are from the third party sellers.

  • Customers are able to choose the product based on the price, seller preference, and the shipping method.

  • The online marketplace like Amazon and Etsy eliminates the need to visit different online stores for competitive bids because they provide access to multiple sellers selling in multiple platforms.

  • The online marketplace like Amazon and Etsy is created in such a way that it offers advertising and payment processing for all the third party sellers across the globe.

  • Proof and credentials are also can be made visible to the customers to increase the trustworthiness.

Approximately 62% of the people who use smartphones are most likely to make a purchase from their device in the past 6 months.


Smooth Registration process:

With the integration of social media to the marketplace app, there is little or no need to enter loads of personal data into your registration form. Customers are allowed to log in through any of the social media they hold and all their details are collected from that account. The whole ideology is to limit and create a marketplace app where the registration is made simple and crisp.

PUSH Notification:

The push notification is a crucial way to hook your customers into your marketplace app. It actually reminds your customers about many things like promotions, offers, sales, restocks notification, etc. If you send the right notification at the right time, it will definitely define your success in the long run.

The click rate is 7 x than email marketing and the retention rate of the customers are 93% with push notifications to the segmented users.

Multiple Payment options:

As you have decided to build a marketplace like Amazon or Etsy, the customers are dispersed globally. To facilitate all your potential customers make a purchase from your marketplace app, you need to add multiple payment gateways integrations in the app. Build a marketplace app like Amazon with all the available payment methods apart from credit and debit cards like Paytm, Amazon pay, PayPal, etc to attract and retain more customers.

Social Media Integration:

It's interesting to know that social media and online ecommerce marketplace app goes hand in hand. Not only does the social media integration lessen the registration process but also offers different ways for the customers to promote your marketplace app from sharing your referral coupon and discounts to their friends and relatives.

According to Annex cloud, 77% of the total customers prefer to log in through social media and 60% happily uses social login in mobile.

The most popular platform for signing in is Facebook and Google+ stands at the second position.

Add to Cart:

More often, the buyers are more likely to add an item into the cart for the future purchase. This feature enables the customer to save an item they had eyed on and purchase it in the near future.

Ratings and reviews:

When you want to build an online marketplace app like Amazon and Etsy, it's nearly mandatory to have ratings and reviews for all the products listed for the sale. This feature in your marketplace app not only develop trust but also make your customers make an informed decision to choose the best.

95% of the customers read the reviews before they make a purchase in your online marketplace app


Since your objective is to create an online marketplace app like Amazon ad Etsy, you will have customers worldwide. To make them feel pleasure in shopping in your app, provide them with the list of all the languages used worldwide.

How does your online marketplace app make money?

Before we provide you with the cost of developing an online marketplace app, let us dig in depth to know how can we recover our investment.

There are two ways of designing your revenue model.

  1. Affiliate Revenue
  2. Transaction Fees Revenue.

  • In the affiliate model, you would earn money through the commission amount by referring the customers to other apps.

  • In the transaction fees Revenue model, the charge is drawn by the transaction between a buyer and  a seller or through

  • Product listing types

  • Sponsored product fees

  • Commission fees the seller need to pay during the auction.

How much does it cost to build a Marketplace App like

Amazon & Etsy?

Here we are at the decisive point to know what is the cost of building an online marketplace app.

The cost of creating an online marketplace app like Amazon can be segregated into three parts.

  • Wireframe:

Wireframe of a marketplace app is the process where a rough design of the final app model is showcased to the developers as well as the customers.

The cost estimate is from $800 to $1000.

  • Design:

When you opt to build an online marketplace app, you should concentrate more into the scalability and the versatility of the app to make the app the most powerful competitor in the market. To design this crucial element, it would cost around $7000 to $10000.

  • Development:

Whatever you have as an idea for your online marketplace app will be turned into reality in the development process. The development cost depends on a number of resources working on your project and the features you inculcate on your marketplace app.

So, having all these in mind, building an online marketplace app like Amazon and Etsy will account you somewhere between $30000 to $80000.

Now that you are familiar with the marketplace app model, features and cost analysis, if you would love to gain some additional information or assistance regarding the development and cost, our team of experts will guide you for your dream project.