Factors involved in developing an eCommerce marketplace app
The concept of eCommerce is very old and ancient. Digital marketers are reaping out various benefits from it. Various eCommerce giants offer online shopping for almost every product, and there is no other way. Now, it is the perfect time to ride the crest.
In 2018, the online physical sale of physical goods in the US was $ 504.6 billion, and in 2023, it is predicted to be more than 735 billion dollars. The achievements of major marketplace platforms do not have any disputes. These eCommerce giants have already been downloaded more than 100 million times in one year.
Let’s think about developing a marketplace like current eCommerce giants, where one can have interactions and conversations with sellers and buyers. What has the creation cost? Well, that depends on features you are looking to integrate with the app at the time of mobile app development.
Make research:
Competitors can be analyzed in a particular country, a specific continent, or global competition. There is no point in trying to compete straightforwardly with e-commerce giants like Amazon. Generally, it is better to create a marketplace app with many key features and simple but attractive user interface, and then see how it works for your enterprise. This is the reason why, in our example research, we decided to focus on niche e-marketplace solutions.
On the mobile commerce scenario, it is difficult to separate, because all major product features are very much between the apps. But one can always win over the competitors by giving extra value to customers for higher attraction. This can either be free shipping, money-back, cash back in the wallet, free product listings, discounts, and bonus, etc.
Make a list of functionalities to enhance KPIs:
Before you move on to a particular type of app, you need to set your preferences and determine what your expectations from the app are. This happens when you have to consider various KPIs or major performance indicators. Selecting the indicators must be in your priorities that will enable you to elaborate on the crucial features of the marketplace app.
One of the essential KPIs for the application is the lifetime value. Three other important types of KPI are Retention Rate, User Interaction Metrics, and Revenue.
1. User engagement metrics: How valuable your app is’ for the users?
Engagement means the participation of a user with a product. User engagement is calculated by solid user behavior metrics, making it reliable and trustworthy. Metrics of user engagement include:
· Active users: Number of users using the app in the stipulated period.
· Session length: Time user spends in the app.
· Conversions: The transformation of normal visitor into a potential customer as an eCommerce transaction.
2. Revenue: Money app makes:
There are two revenue models for mCommerce application:
1. Transact fee model: Application gets commission after every successful transaction.
2. Affiliate Model: Application gets the commission after giving reference of customers to website or apps.
3. Retention Rate Model: Number of clients using the app again?
Push notifications that provide targeted and context-sensitive messages to enhance user retention are great. Notifications usually recall the customers when any of their chosen products are sitting in a cart. The push notification reminds the user to complete the shopping purchase either by offering the discount or through coupons.
A transaction fee for the e-commerce app is the most profitable revenue model, which acts as an intermediary digital market. This revenue model is highly and more complex in form. In the original form, the application gets the commission for executing or enabling the transaction. Revenue is based on the number of transactions.
More complex revenue model has numerous different fees:
Commission: Amount that seller has to give in the end of the auction.
Promotional Fee: Amount paid to showcase the product on top for attracting more users.
Insertion Fee: Fee paid to list any product/item.
As we have discussed the various points about estimating the cost of online eStore development. We have gone through the various KPI’s for helping you in taking the correct decision for mobile application development. We at Panacea develop various types of apps, and we have a clear idea about the development cost. Without the in-depth planning and analysis, there is no scope of success and to stand tall in a dynamic and tech-driven mCommerce market.
In our cost estimate, we do consider the app design and development with API designs and its development. The cost of an app straight forwardly depends on the number of hours app developers are going to spend, and the hourly rate specifically depends on the company you will choose to. For more details drop us a mail at info@panaceatek.com.
