Aspiring entrepreneurs may struggle to discover clear information about e-commerce development costs and delays. Existing content is geared towards developers, leaving startup founders disoriented in tech speak and industry jargon. At AppsInsight, we decided to alter this by creating the ideal guide on e-commerce app development for startup entrepreneurs.
An e-commerce app typically costs around $40,000 to build. However, the total cost could range from $40,000 to $60,000. An e-commerce app with fewer features (also known as a minimum viable product, or MVP) will be less expensive than an app with all expected capabilities.
According to Capital One research, mobile eCommerce sales are expected to hit $7.08 trillion by 2027, representing a considerable rise over current levels. With the eCommerce business quickly developing, now is a good moment to explore joining this space.
Before going into this article, as entrepreneurs, have you ever considered how much it costs to construct an ecommerce app, particularly if you are starting your first e-commerce firm with an app?
If not, you have arrived at the right place!
This post is for most people, like you, who want to know how much e-commerce app development costs. Later in this blog, we’ll look at a variety of elements that influence cost estimation.
So, be prepared to collect all of the surprises that could lead to an accurate cost estimate for your first e-commerce app.
Let us start!
What is an E-Commerce App?
An E-Commerce application is a software or mobile application that allows users to buy and sell their products. Apps for mobile commerce benefit both customers and business owners.
Brands can engage with customers more effectively in a dedicated location where users can personalise and control their experience. Nowadays, systems such as Shopify and Ecwid make it much easier to create mobile apps.
E-commerce apps serve as a link between businesses and customers online. Typically, these services operate on a B2C (business-to-customer) model, such as Amazon.com, or C2C, such as eBay.com or Etsy.com. Some of them function as B2B platforms.
Can you picture the world without online shopping? We simply cannot.
The industry is rapidly expanding, and with increased competition, people want a flawless shopping experience with feature-rich functions.
Looking For? Best E-commerce App Development Companies
Rapid Market Growth of E-commerce Apps
The history of online purchasing began with commercial sales websites. Over time, mobile traffic surpassed web traffic, forcing these platforms to transform into e-commerce mobile apps. Nowadays, approximately 60% of people make online transactions using their phones, and most firms launch with a mobile app right away.
The pandemic has considerably sped e-commerce app development processes and permanently altered online purchasing habits. According to Google statistics, after numerous countries went into lockdown and enacted stay-at-home orders, the number of searches for the term “delivery” increased by 300% to 900% in various countries.
The unpredictability of the situation has influenced shopping habits around the world. According to studies, people began to spend more money on necessities, such as groceries and household supplies. Meanwhile, the budget for clothing and travel was reduced during this period.
We have written about Cost to Build an E-Commerce App Like Idealz?
Top Features of E-Commerce Mobile App Development
To stand out, your app must include features that ensure seamless navigation, secure transactions, and engaging user interactions. Here are the top features that can drive success in e-commerce mobile app development.
Login
Users must initially register before interacting with the app. This feature allows users to sign up for the app with their email addresses and social network accounts, then log in after completing the authentication procedure.
Users who have previously signed up can use their login information to access the app. Then they must create a user profile with the user data.
Home Page
Following onboarding, the homepage of your app is the primary aspect that captures users’ attention. Make sure it contains the content that your target audience is most interested in to make it more effective. You can, for example, highlight profitable bargains, discounts, or the most recent software updates.
Search
Entering the product’s name into the search field enables users to locate it quickly, making the search function essential. Using filters, users can look for products based on color, size, price, and other criteria.
Catalogue of products
The product catalogue is the lifeblood of your app. Clear images, product details, names, and prices are the most commonly used classification system.
Ratings and reviews
It is impossible to exaggerate how important of reviews and ratings. Products from the app must be able to be reviewed and scored. Customers have the option to rate and review products on the app after making a purchase. Other users will use this information to learn more about the products and make an informed decision about buying them.
Different Payment Choices
This capability is required if you want to build an online retail app like Noon. Your app must handle payments promptly and efficiently. A multi-payment gateway can help you create a seamless checkout experience. Users should be able to pay with credit or debit cards, internet banking, PayPal, eWallet, and other options. It will help to build client loyalty.
Cart
Customers can add the things they want to buy to their cart and then check out once they’ve decided. To proceed, customers must supply their name, address, phone number, and preferred payment method. Following that, the user can click the ‘order’ button, which will process the order.
Order Summary
When consumers submit orders, they must be kept updated throughout the delivery process. Add this function to provide real-time order tracking by providing an estimated delivery time. This functionality improves user-application interaction.
Deliveries on schedule
This tool allows users to plan delivery times based on their availability and suitability at the place.
Notification
Companies can utilise notifications to provide their app users promotions, offers, and alerts. By including this function in the eCommerce app, consumers will be updated about new developments. The software must remember that alerting users—not disturbing them—is its main objective.
Customer service
If there is an issue with the order, it enables the user to contact the business. In the event that the delivered order is damaged or inaccurate, customers can always get help from the customer service department.
Trending Types of E-commerce App Development
Here’s a list of trending e-commerce app types driving digital transformation in the retail world.
1) Custom E-Commerce Solutions
Custom eCommerce solutions are made to order to satisfy certain corporate needs and objectives. Custom solutions are created from the ground up or significantly altered to meet specific requirements, in contrast to off-the-shelf platforms or templates.
With the greatest degree of flexibility and control available, this method enables companies to design a solution that precisely matches their operations and user requirements. However, compared to adopting pre-built platforms or frameworks, custom development is usually more costly and time-consuming.
2) Web-based eCommerce applications
Web-based eCommerce apps include both Progressive Web Apps (PWAs) and responsive webpages. PWAs leverage modern web technologies to provide an app-like experience in a web browser, including offline access, push notifications, and quick loading times.
They can be installed to a mobile device’s home screen, giving users the same experience as native apps without having to go through app stores. In contrast, responsive web design guarantees that a website adapts to different screen sizes and device kinds, providing a consistent and accessible user experience on computers, tablets, and smartphones.
3) Hybrid eCommerce Applications
Hybrid eCommerce apps incorporate components from both native and online technologies. They are created using web technologies (HTML, CSS, and JavaScript) and packaged in a native container that allows them to be distributed via app stores. This strategy allows developers to create a single program that works on numerous platforms, but it may result in lower performance when compared to completely native apps. While hybrid apps can be created more rapidly and cost-effectively, they may not fully use the device’s hardware capabilities, thereby affecting user experience.
4) Native Commerce Apps
Native eCommerce applications are tailored to a certain operating system, such as iOS or Android. These apps are created with platform-specific languages and tools—Swift or Objective-C for iOS, and Kotlin or Java for Android.
Native apps are known for their improved performance and seamless user experience since they take full advantage of the device’s hardware and operating system. This results in a highly responsive and efficient software capable of utilising device-specific features like as GPS, camera, and notifications.
5) B2B VS B2C eCommerce Apps
B2C (Business to Consumer) and B2B (Business to Business) eCommerce apps serve diverse market segments with unique requirements. B2C apps are intended for direct contacts with individual consumers and usually include user-friendly interfaces, product catalogues, and simple payment mechanisms.
They aim to provide end consumers with a smooth buying experience. B2B eCommerce systems, on the other hand, are designed for business-to-business transactions and frequently include advanced capabilities such as bulk ordering, bespoke pricing, and elaborate workflows for managing business relationships and huge purchases.
6) eCommerce Apps for Cross-Platforms
Frameworks like React Native, Flutter, or Xamarin are used to create cross-platform eCommerce applications. With the help of these frameworks, developers may create code only once and have it run on both the iOS and Android platforms.
Compared to developing distinct native apps for every device, this method is frequently quicker and less expensive to develop.
Although they might not always be as optimised as native apps, cross-platform apps provide a decent compromise between development efficiency and performance.
7) Marketplace Apps
Multiple buyers and sellers can deal on a single platform with the help of marketplace apps. They provide a centralised platform for clients to peruse and buy from several sellers by enabling them to post their goods or services.
Examples of these apps are eBay and Amazon. Marketplace apps frequently include capabilities to enable vendor profiles, reviews, and disputes in addition to managing vendors, product listings, order processing, and payments for numerous sellers.
Complex backend systems are usually used in this kind of application to control user interactions and provide a seamless user experience.
8) Subscription-Based E-commerce App
Users of subscription-based eCommerce applications pay a regular charge to access goods, services, or content, and these apps work on a recurring income model.
Digital products including software, memberships, and streaming services are frequently sold using this paradigm. Robust features are necessary for subscription apps to manage paying cycles, content access control, and subscription plans.
They frequently provide features for managing user accounts, subscription renewals, and recurring payments.
9) Headless eCommerce Platforms
Headless eCommerce platforms separate the front-end presentation layer and the back-end commerce capabilities. This decoupling provides greater flexibility in designing and delivering distinct user experiences across several channels, such as web, mobile, and IoT devices.
The front and back ends communicate via APIs, allowing businesses to quickly integrate with numerous digital touchpoints and customise their user interfaces. This strategy is especially beneficial for firms that require a personalised user experience or want to evolve quickly across different platforms without being bound by the back-end system.
To know more, check our category “App Development Cost“
Factors Affecting the Cost of Developing E-Commerce Apps
It is neither feasible or realistic to estimate the cost of developing a mobile app directly. With e-commerce apps, the situation is the same. The cost of developing an e-commerce app depends on several aspects. The total cost is approximated based on these parameters.
Let’s examine the elements that influence the cost of e-commerce apps.
Features & Complexity of the App
The complex nature of the app is one of the most important considerations in the development of an e-commerce app. The cost increases in proportion to the level of complexity. Put more simply, complicated applications cost more because they need more time and work. The complexity of an e-commerce app is typically determined by its features and functionalities.
Thus, depending on complexity, the cost of developing an e-commerce mobile app could be as follows:
| App Complexity | Features Included | Estimated Cost |
|---|---|---|
| Basic | User login, product catalog, search, shopping cart, payment gateway | $10,000 – $20,000 |
| Intermediate | Advanced search filters, push notifications, wish list, user reviews | $20,000 – $50,000 |
| Advanced | AI-based recommendations, AR for virtual try-on, multi-language support | $50,000 – $100,000 |
| Enterprise-Level | Custom CRM integration, analytics dashboard, advanced security features | $100,000 and above |
Platform for Developing Mobile Apps
One of the key elements influencing the cost of e-commerce apps is platform selection. The majority of e-commerce applications fall into one of two categories: iOS or Android. Even if each platform has benefits, Android is the best if you want to reach consumers all over the world. However, if you want to reach clients in North America, iOS app development is the greatest option.
Another option for creating your e-commerce app is cross-platform app development. Just so you know, iOS and Android are regarded as native platforms. Thus, the price may be as follows:
| Development Type | Basic App | Mid-Range App | Advanced App |
|---|---|---|---|
| Native App Development | $20,000 – $30,000 | $40,000 – $60,000 | $70,000 – $100,000+ |
| Cross-Platform Development | $15,000 – $25,000 | $30,000 – $50,000 | $60,000 – $90,000+ |
Key Notes:
- Native Apps: Built specifically for one platform (e.g., iOS or Android), offering better performance and user experience but at a higher cost.
- Cross-Platform Apps: Built using frameworks like Flutter or React Native, allowing deployment on multiple platforms with reduced development time and cost. However, they may lack the full optimization of native apps.
Developers’ location
The cost of developing a mobile app for e-commerce is also influenced by the developers’ location. Global e-commerce developers charge varying prices. The recruiting fee is subsequently included in the overall cost. It functions as follows:
| Region | Design | Development | Payment Gateway Integration | Maintenance & Upgrades (per year) |
|---|---|---|---|---|
| USA | $1,000 – $15,000+ | $20,000 – $70,000+ | $1,000 – $10,000+ | $2,500 – $15,000+ |
| India | ₹10,000 – ₹50,000+ | ₹10,000 – ₹500,000+ | ₹5,000 – ₹50,000+ | ₹10,000 – ₹100,000+ |
| UK | £1,000 – £7,000+ | £10,000 – £50,000+ | £250 – £2,000+ | £2,000 – £7,000+ |
| UAE | AED 5,500 – AED 20,000+ | AED 55,000 – AED 250,000+ | AED 2,000 – AED 10,000+ | AED 10,000 – AED 50,000+ |
| Pakistan | PKR 5,000 – PKR 70,000+ | PKR 25,000 – PKR 500,000+ | PKR 5,000 – PKR 100,000+ | PKR 4,000 – PKR 60,000+ |
Size of the Team
A huge team of mobile app developers is required if your project is larger. But it will raise the cost of hiring, which will raise the cost of developing e-commerce mobile apps. The cost of employing them to form the team would be as follows.
| Role | Experience Level | Hourly Rate | Monthly Cost (Full-Time) |
|---|---|---|---|
| Junior E-commerce Developer | 0-2 years | $15 – $30 | $2,400 – $4,800 |
| Intermediate Developer | 2-5 years | $30 – $50 | $4,800 – $8,000 |
| Experienced Developer | 5+ years | $50 – $80 | $8,000 – $12,800 |
| Team Lead | 7+ years | $60 – $100 | $9,600 – $16,000 |
| Project Manager | 5+ years | $50 – $90 | $8,000 – $14,400 |
| UI/UX Designer | 3+ years | $40 – $70 | $6,400 – $11,200 |
| Quality Analyst | 2+ years | $25 – $50 | $4,000 – $8,000 |
Key Notes:
- Junior Developers: focus on smaller tasks or modules under supervision.
- Intermediate Developers: handle moderately complex features independently.
- Experienced Developers: manage critical app functionalities and integrations.
- Team Leads: oversee the development process and ensure efficient collaboration.
- Project Managers: coordinate the project lifecycle and maintain timelines.
- UI/UX Designers: ensure user-friendly and visually appealing interfaces.
- Quality Analysts: guarantee that the app is bug-free and functions smoothly.
How to Lower the Cost of Developing E-commerce Mobile Apps
There are various approaches to cut expenses while designing an e-commerce app, depending on your business needs and budget:
Select platforms that are open-source. You can reuse, alter, and improve the source code they supply. It will be the cornerstone of your mobile application.
Make the app’s design simpler. Complexity in design does not equate to quality. Minimalism, user-friendly interfaces, simplicity, and a tidy appearance are recent trends.
Set important features first. Pay attention to the qualities that you really require. For instance, a user cannot complete and receive a purchase without a payment gateway or real-time order tracker; however, social network integration might be able to wait.
Start with the MVP (minimum viable product). The MVP is the first completely functional version of your product. It often offers a limited range of features that are adequate for people to utilise and provide feedback. It can help you test the market and create an ecommerce app that is relevant to your target audience.
How Can E-Commerce Apps Make Money?
Although there are other ways to monetise an eCommerce app and streamline the ecommerce website development process, we’ll go over some of the more common ones so you can use them independently or in combination to boost both your revenue and the value of your app to your users.
Commission fees
The platform management will generate a constant cash stream by charging a commission fee for each transaction between merchants and buyers.
Subscription fees
You can charge a monthly or yearly membership fee to provide consumers with privileges such as same-day delivery and discounts.
Sign-up costs.
You can charge a one-time sign-up fee to encourage merchants to sell their products on the platform you’ve chosen.
Listing Fees
You can charge the vendor a fee for displaying their items so that they appear first in user searches.
Sum up…
The e-commerce business has experienced substantial growth in recent years.
The market is expanding rapidly, and demand surpasses current opportunities. That’s why now is the ideal moment to identify your niche and begin developing your e-commerce app.
