The whole point of e-commerce is to bring the marketplace as close as possible to the customer. First, it came on the computers, so that all you had to do was fire your laptop up for shopping. Next, it came to smartphones making online shopping easier than ever. Maybe the next innovation will be that you clap four times in front of your artificial assistant and they summon the digital marketplace to you. Although e-commerce has been here for a long time, its crest is still persistent.
Let’s suppose you’re all set to create a marketplace mobile app with its own unique features. An important aspect of building a marketplace app will be to define the cost that’ll be used to build the app. The cost will depend upon the features that you want to add to your app.
Some features that you will find in just about any e-commerce app, and some customized features that will set you apart from your competitors. Obviously, the unique ones will cost you more. To define the marketplace app development cost, you need to analyze the market and create a customized list of features for your app. Let’s get to it, shall we?
Step 1: Analyze the Market
There are two steps when it comes to analysis of the market for any niche.
Analyze the Customers
Analyze the Competitors
First and foremost is analyzing your target audience which depends upon the sellers that you will help in bridging with the customers. For instance, if you are looking to build an online marketplace consisting of pop culture T-shirt sellers in your region, your target audience should be teens and early adults. Similarly, if you want to create a marketplace mobile app to distribute medical supplies online, your target audience should be middle-aged and elder generation.
Also, keep in mind that you have to offer something unique that adds value in order to retain customers and ensure loyalty like flexible refund policies, lightning-fast delivery loyalty points, flexible exchange, and return policies, etc.
Secondly, you should analyze your competitors based on the region where you plan to bring the online marketplace. Now, there’s nothing wrong with ambition, but it should be realistic. So, you should start with small region-wide objectives and compete with the contenders there. There’s no point in thinking of taking out giants like Amazon or Alibaba.
You should start small by funneling your time in introducing some key features to your marketplace app development and in making the user Interface engaging and user-friendly.
Step 2: Set a Customized List of Features Reflecting Your Objectives
Once you’ve got a hold of the market and in turn defined your objectives, you now need to create a list of features for your marketplace mobile app. These features must revolve around your objectives that are measured in different key performance indicators.
It is imperative to choose the indicators on the basis of your expectations from the app and prioritize them. These indicators, in priority order, will help you define the core design and features for your marketplace app development.
To create a market place mobile app, the below-listed metrics are the most crucial indicators that will help in determining the set of features that are the best fit for your marketplace app:
Customer Life Value
What actual value does the customer hold to you?
This KPI means the total worth of a customer to you over the whole period of your relationship. It is tangibly linked with revenue but can be boosted by intangible promises like customer loyalty and satisfaction. It is an imperative metric to analyze and work upon as it obviously costs marginally more to acquire a new customer than it does to ensure the retention of the old ones. This indicator can be boosted by increasing the value of a customer. For this, you need to introduce features like loyalty points, coupons and discounts, periodic sales, etc.
User Engagement Metrics – How much value does the customer find in you?
User engagement is the level of a customer’s investment in you. These are measured by users’ behavioral factors like total time spent on the app, active users over a period, the number of users that bought something over the ones that visited your marketplace app, etc. We need to incorporate some features in the marketplace app development process that will ensure greater user engagement. Some suggested features are:
Achievement Badges: It’s gratifying for every soul when they get a reward or achievement for their actions. You can give these achievements in any form such as action and milestone badges, user ratings, redeemable loyalty points, etc.
Virtual Try-on: This feature lets the user try the product with the help of augmented reality, such as glasses, apparel, jewelry, and even makeup, and makes the user engagement skyrocket.
Gamification Methods: It is highly likely that the behavioral metrics will get severely inclined in the direction of increased user engagement when you incorporate different gamification methods in your marketplace app development process. Add features like rewarding systems, leaderboards, time-constrained milestones, etc.
How many users end up using your app multiple times?
User retention rates can be boosted by introducing push notifications that deliver targeted and context-aware messages. Users can be fished by using their search histories and interests. Push notifications can remind the users of their filled shopping carts or discounts available.
Revenue – How much money does your app make?
There are two choices for marketplace revenue models for mobile apps:
Affiliate Revenue Model- This marketplace revenue model for mobile apps is easiest to implement out of all the revenue models. You earn your revenue as a commission for referring customers to other websites or apps.
Transaction fee revenue model- This is the most profitable and convenient marketplace revenue model for mobile apps. In this revenue model, you receive revenue by listing an item (insertion fee), promoting an item (promotional fee), and commission for a completed transaction
Simple forms of these models just rely upon the commission for revenue. But, you must add some elements of other marketplace revenue model for mobile apps so that your revenue doesn’t rely on one strategy.
For the revenue to be boosted, you need to introduce features like gift cards, discounts, and select coupons. You can reward the users with redeemable points when they shop, which can prove useful to them in the next purchase or give them added features.
We have Flipkart as a great example. Flipkart gives the user “supercoins” for a certain amount of purchase. When they reach a certain number, their membership gets upgraded to Flipkart+ which has its own perks.
Step 3: Find the cost to create a marketplace mobile app for your list of customized features
Once you have taken your market analysis and all the KPIs in the account, you now need to calculate the approximate budget figure that will come out in a customized marketplace app development. It is utterly important to give into these sharply calculated measures because your risk baggage is more when you want to create a marketplace mobile app than some other niche.
According to us, the marketplace app development will consist of two main processes i.e. Android or iOS app design and development and API design and development. The total development cost to create a marketplace mobile app will depend upon the man-hours spent on developing the app, hourly rate depending upon the choice of company.
We understand that you’re already stuck with a ton worth of risk baggage due to high competition in the e-commerce niche. The above practices will come in handy if you want to create a marketplace mobile app that sets itself apart from its competitors. Let us know in the review if this article helped you. Best of luck!