Ecommerce platforms or app like eBay are popular for simplifying the shopping experience for their users. These platforms allow users to buy anything they want in just a few clicks, without wasting much time just like grocery or any food delivery app.
eBay – one of the most popular eCommerce websites/apps that allow users to sell or purchase products online. Its website and mobile application enable users to sell or purchase any product they want. The eCommerce platform consists of multiple categories to browse through for products.
In this blog, we will learn about challenges faced while launching an app like eBay, the features your app should have, how can you earn money from your app, how much will it cost to develop an app like eBay and the online auction app development fundamentals needed.
There can be a lot of challenges one has to face while building an app like eBay. A few of them are discussed below:
You must have heard about the world-famous question – what came first, the chicken or the egg? Similar to this, the question is raised – which comes first, the buyers or the sellers? The problem is bringing two kinds of consumers to the competition at the same time. The price system is one solution. You may, for example, charge sellers but provide free services to buyers. This approach would inspire shoppers to participate. You’ll have more vendors on board if you have more customers.
eBay, Amazon, Alibaba, etc. are one of the huge marketplaces in the world. To be ahead of them in the game is a difficult task but one can always try to be on the competitive edge. Smart marketers advise choosing a niche, or selecting an untapped consumer segment and pouring resources into conquering it, to achieve a competitive edge.
In a competitive world, a niche marketplace focused on a narrow category of goods or services is a viable direction. For example, Etsy. It is a marketplace for handmade and antique goods and supplies. Its artists are mostly independent female that delivers products that are not mass-produced.
The primary goal of an eCommerce design is to improve navigation, shorten the road to purchase and make it as simple as possible for consumers to purchase products. A well-considered UI/UX architecture will effectively turn visitors into shoppers and boost sales.
Consider UI/UX logic and transformations to do this, and make sure the micro-interactions are quick and straightforward. Concentrate on traffic conversion, a simple payment process, and other sales funnel elements.
Features and functionalities are a major part of a mobile app as they determine how the app will function in the marketplace. The basic features that must be included in your app like eBay are described below:
There can be a lot of ways in which you can earn money from your app like eBay. Some of the best ways are discussed below:
Sellers are paying fees ranging from 3.5% to 10% of the final selling price. According to Expanded Ramblings, in 2017, eBay managed $88.4 billion in revenues, with seller fees accounting for two-thirds or three-fourths of the company’s revenue.
Your app like eBay should charge sellers some amount of fees per category or listing. The number of categories the sellers adds will be proportionally equivalent to the fees he has to pay.
In eBay, the seller would pay $0.35 per listing if they add more than 50 listings a month. You can consider implementing this technique in your auction app as well.
When people use PayPal to send money, eBay earns money from transaction fees. Sellers, for example, incur a 2.9% purchase fee plus a $0.30 transaction fee on the net selling price. In addition, transferring money from a debit or credit card incurs a conversion charge of 2.9% plus $0.30 per transaction. Similar methods can be adopted for your app like eBay.
Your app like eBay would offer the functionality of advertising the products to the sellers. The main method of advertising on eBay is promoted listings. Sellers will use promoted listings to boost an item’s popularity by positioning it at the top of eBay search results. Cost per sale (CPS) advertisement is seen on eBay. This ensures that buyers are not charged with views or clicks that do not lead to a transaction.
Before starting the development process of your app like eBay, you must understand the budget requirements for this process. The aspects that influence your budget are the features and functionalities included, the technology stack used, the platforms integrated, the developers’ cost and many other things.
But, if you’re wondering how much it costs to construct an app like eBay, the starting point is $30,000. This is just the estimate that can be given before the beginning of the development process, the cost may increase or decrease as per the requirements of your business model
Many developers are drawn to auction app like eBay and want to create their own. It is completely fair because building a good website pays off with a large number of visitors and a high retention rate, resulting in a large profit. It gets much better if you can work with an established custom product development team.
The AppDukaan team has created a number of marketplaces and auction platforms, and we will happily assist you in creating an app like eBay. Let’s talk about how we can transform your concept into a viable product.