How Much Does It Cost to Build a Marketplace App Like Gumtree?
By Darshak Doshi
July 18, 2024
Detail Guide About Digital Marketplace like Gumtree
The world is shifting online. Marketplace apps have emerged as major contenders. They bring buyers and sellers closer than ever. Of all the marketplace apps, Gumtree is a popular example. It is one of the most successful, known for its powerful base and millions of users.
This article will break down the costs involved, from app features to ongoing maintenance. It aims to guide businesses in creating successful online marketplaces. It will also help existing firms that want to go online.
Knowing the cost and planning it right will help in setting the right expectations. This blueprint is for building a unique and profitable app for a digital marketplace.
Gumtree App Statistics
Online marketplaces are booming. The global market is expected to reach $7.4 trillion by 2027, growing at a rapid 22% yearly. Mobile use is key, with 14 billion predicted online shoppers by 2021 and 85% of smartphone time spent on apps.
Gumtree, with 16 million monthly users and 8 million ads, is a prime example. This growth presents a massive opportunity for profitable apps like Gumtree, especially with expected sales surpassing $3.5 trillion by 2023.
Understanding the Core Features of Gumtree Marketplace
To accurately estimate the cost of building a marketplace like Gumtree, one must first understand the core features that make up the app. Gumtree has many features. They help buyers and sellers make smooth transactions. The app needs these features. They are key to the user experience. Copying them needs careful planning and execution. Below is an expanded look at each of these core features:
1. User Registration and Profiles
User registration is the entry point for any marketplace app. Gumtree allows users to create accounts using email or social media logins. Once registered, users can create and manage profiles. Profiles include personal info, pictures, and preferences.
The profile section gives an overview of the user’s activity on the platform. It shows items listed for sale, purchase history, and feedback received. Doing this requires ensuring security through email verification. It also involves making user-friendly interfaces for profile customization.
2. Product Listing and Search
One of the most critical aspects of Gumtree is its product listing and search functionality. Sellers must be able to list products easily. They must add descriptions, prices, and images. Categories and tags are utilized to organize listings to ensure ease of use.
On the buyer’s side, efficient search and filtering options are essential for finding specific items. This involves making strong search algorithms. They must handle many types of queries and filters.
These include location, price, and item condition. Advanced features can improve the user experience. They include auto-suggestions, sorting options, and saved searches.
3. Use Chat And Texting To Negotiate Deals And Resolve Product Difficulties
These discussions must be direct between the buyer and the vendor. Gumtree’s real-time messaging ensures user safety. Users can communicate within the app without sharing contacts. This feature requires stringent security. It will safeguard the client’s privacy while preventing spam and fraud.
Additionally, push notifications can be useful. The same goes for message archiving and read receipts. These can help improve the app and increase consumer pleasure.
4. Payment Processing Is Essential
It provides the security and convenience of transactions in any thriving economy. Gumtree accepts numerous payment methods. This depends on the cost of building a marketplace like Gumtree. They accommodate users by offering credit/debit cards, bank transfers, and digital wallets.
This functionality should ensure payment security. This applies to payments, refunds, and transaction history. Another major process is required to establish a stable payment system. It adheres to the PCI-DSS (Payment Card Industry Data Security Standard). It also employs fraud detection. These safeguards secure the user’s transactions.
5. Review And Rating
The Gumtree-like marketplace has a review system allowing buyers and sellers to assess their transactions. This ensures the platform’s credibility and trustworthiness. A good review system requires an appropriate rating system.
It also requires specific algorithms. These will aid in the identification and separation of genuine from counterfeit products. Respond to reviews and use rating criteria to provide detailed input.
They provide additional information regarding the user’s performance. Each of these aspects requires strategy, design, and implementation. Each one is expensive.
Factors Influencing the Cost of Developing a Marketplace App like Gumtree
The following factors may affect the app development cost for Gumtree:
App Complexity
The sophistication level of the app under development is one of the main factors that define costs. An MVP mobile app with few functions will be much cheaper than the final, high-quality, advanced marketplace application. This is to a certain extent; the more complex the app the higher the development cost because of the time and effort put into it.
For example, adding a complex search makes it complex. So do individual recommendations and better security. This raises its price.
Design Requirements
UI and UX design are the most critical factors determining the app’s success or failure. Another important element is usability and look and feel, as a good app should be able to attract and maintain users’ attention.
While increasing the first cost, it also raises user satisfaction and user stickiness. Custom designs, animation, and other interactive features increase development time and cost.
Development Team Location
Specifically, the cost to build a marketplace like Gumtree depends on the location of the development team. Contractors based in North America and Western Europe command a higher price than those in Eastern Europe, India, or SE Asia.
For instance, American developers charge $100 to $200 per hour. Eastern Europe or Asia developers cost $25 to $50 per hour. Controlling costs should be considered when choosing the right development team. Also, consider the team’s expertise.
Technology Stack
The type of framework that is selected influences the nature of the app and its cost. A strong and flexible foundation is needed for processing a significant amount of data and user interactions. Marketplaces like Gumtree use cross-platform technologies.
They use React Native or Flutter for the front end and Node for the back end. Js or Ruby on Rails for the back end, and MongoDB or PostgreSQL for the database. Here, each technology has costs. Some may need expensive skills.
Post-Launch Maintenance
Creating an app is not enough; constant improvement and support are inevitable to its success. Maintenance is needed. It includes patching bugs and adding features or compatibility for new operating system versions.
Annual maintenance usually ranges between 15% and 20% of Gumtree’s initial app development cost. This is for the cost of servers, management, customer support, and constant updates in line with customers’ feedback.
Explore More About Top Mobile App Development Companies In Germany & Switzerland
Detailed Cost Breakdown Of Gumtree App Development Process
Planning and Research
Therefore, the first stage is mainly characterized by pre-strategizing. This includes market research and the target audience, as well as a description of the app’s features and possibilities. The cost estimation in this phase can start at $5,000 and go up to $15,000, assuming that a business analyst or consultant is to be hired.
UI/UX Design
The second is to define the appearance of the application, its major functions and what it should be similar to. This includes the plan or the mock-up of the intended design. It also includes the last draw or layout of the intended item.
This item is to be made at the end of the process. The cost for UI/UX design is $10000 to $50000. It is just an estimate based on the number of UI/UX design features and the level of customization expected on this interface.
Development
The last phase is the core phase. It includes making the front end and the back end. It also includes linking the application program interface and the security features.
- Frontend Development: If you plan to go cross-platform, frameworks such as React Native or Flutter will cost you between $20,000 to $50,000.
- Backend Development: Establishing a strong backend using Node. The show later shifted to a new format with the same name. JS, Ruby on Rails or similar technologies can cost $25,000 to $60,000.
- API Integration: can cost from $10,000 to $20,000. It involves adding third-party APIs, such as payment gateways and social sign-ins.
- Security features help ensure users’ information and their financial operations’ safety. They may cost $10,000 to $30,000.
Testing
Test the app to the highest level possible. This will prevent it from developing issues that could hinder user enjoyment. These are the functional, performance, security, and user acceptance tests. The charges for the whole array of testing services may vary from $15,000 to $40,000.
Deployment
You must follow the App Store and Google Play rules. Submitting the app should be easy. These expenses, including any changes arising from the app review process, may take between $5,000 and $10,000.
Marketing and Launch
The app’s marketing is the key to its successful launch. This encompasses presales promotion, social media marketing, and influencer marketing, among other things. Marketing expenses may differ, but a good campaign costs $10,000 to $ 50,000.
Post-Launch Maintenance
As mentioned earlier, maintain and update continuously. Updates are very important. To keep the app functional and competitive, 15-20% of the marketplace app development cost must be spent annually on maintenance. A $100,000 app costs a developer $15,000 to $20,000 annually.
Gumtree-Like Marketplace Examples
A few market apps in the app store are like Gumtree. But, they copied and improved its business model. For instance, let’s consider a few examples:
- OLX: OLX is one of the most efficient and widely used apps for buying and selling goods and services. It’s similar to Gumtree. If needed, extra options, like location filters, direct seller/buyer chat, or payments, will cost $ 100,000 – $ 250,000 to add to a similar app.
- Letgo: Like Mequitok, Letgo is concerned with the time it takes to post the product, but this site is also concerned with the interface. Overall, the cost estimation for an app like Letgo that can be used to buy or sell items quickly can range from $80000 to $200000.
- Craigslist: Craigslist is among the oldest and simplest marketplace apps. It is still operational. Developing just the basics of Craigslist will cost $50000 to $100000.
Though each app has some or other features, it is structurally different, which is why it has different prices. For this reason, entrepreneurs must know these ‘real-life’ figures. They use them to assess the app’s budget.
Conclusion
Certain factors affect the cost of building a marketplace like Gumtree. Defining the budget is critical. It covers the smallest details, from features to design, technology, and post-release maintenance. Making an app like Gumtree costs $10,000 to $30,000. The marketplace app development cost depends on the project’s nature and complexity and the company making the app.
Building a marketplace app like Gumtree in 2024 involves various factors influencing its cost. But you can avoid overspending by planning, prioritizing, and focusing on the future. Creating the marketplace app is just the start. Creating a user experience that endures is a top priority.
If you seek a skilled Marketplace App Development team, consider The Intellify. Contact us today! We are the right marketplace app development company that can help you navigate this process successfully.
Written By, Darshak Doshi
With over a decade of experience, Darshak is a technopreneur specializing in cloud-based applications and product development in healthcare, insurance, and manufacturing. He excels in AWS Cloud, backend development, and immersive technologies like AR/VR to drive innovation and efficiency. Darshak has also explored AI/ML in insurance and healthcare, pushing the boundaries of technology to solve complex problems. His user-focused, results-driven approach ensures he builds scalable cloud solutions, cutting-edge AR/VR experiences, and AI-driven insights that meet today’s demands while anticipating future needs.
How to Build an MVP in App Development [2024]
Summary When developing an app, you can build an MVP (Minimum Viable Product). Launching a minimal viable app in the market will help a business. An MVP helps test ideas and their potential reception before full-scale implementation. It does this by focusing on a product’s core features. It raises awareness, optimizes resource use, and lowers […]
How Much Does It Cost to Hire an App Developer? A Complete Guide
Summary Hiring an app developer is a top priority for any business. It wants to enter the market or offer clients unique services via an app. There are several factors to consider when evaluating the Cost of App Developer. These include the region, expertise, project scope, and app type. This blog will help you to […]
Fintech App Development Using Flutter 2024
For developing a new mobile app like FinTech App Development Using Flutter for your business that can fulfill the needs for financial services for your clients including investment advice and different financial issues. In this case, you need speedy processing and quick responses where Flutter works excellently allowing you to build a fast-acting app on […]
How to Build an MVP in App Development [2024]
Summary When developing an app, you can build an MVP (Minimum Viable Product). Launching a minimal viable app in the market will help a business. An MVP helps test ideas and their potential reception before full-scale implementation. It does this by focusing on a product’s core features. It raises awareness, optimizes resource use, and lowers […]
How Much Does It Cost to Hire an App Developer? A Complete Guide
Summary Hiring an app developer is a top priority for any business. It wants to enter the market or offer clients unique services via an app. There are several factors to consider when evaluating the Cost of App Developer. These include the region, expertise, project scope, and app type. This blog will help you to […]
Fintech App Development Using Flutter 2024
For developing a new mobile app like FinTech App Development Using Flutter for your business that can fulfill the needs for financial services for your clients including investment advice and different financial issues. In this case, you need speedy processing and quick responses where Flutter works excellently allowing you to build a fast-acting app on […]
0
+0
+0
+0
+Committed Delivery Leads To Client Satisfaction
Client Testimonials that keep our expert's spirits highly motivated to deliver extraordinary solutions.
Let’s start a Conversation about your Business Goals!
Drop us a line to Start a Project with us