Before we had local market place apps as that of OfferUp, Carousell and LetGo, it used to be quite difficult for the sellers to hit an excellent connection with his ideal buyer in the locality. But the smartphone technologies has brought about a drastic change in this pattern. And if someone is among the inspiring brains that want to snatch the opportunity just as it arrives, exactly like what Uber’s competitors did after Uber became a phenomenon, then this place serve them exactly what they need.
LetGotends to be the recent viral thing in the arena of buy sell marketplace app segment along with the $175 million worth investor back-up making path for its future expansion. Market is well aware of all this stuff going on as it has given platform to worthy inspirations to complete their dream of building an app like OfferUp, Craigslist, LetGo and in this process earn a handsome share for itself in market.
If you are someone who is keen to create a classified buy sell marketplace mobile app and wondering how to make an app which can become a hit like LetGo, it is important to first understand the entire procedure behind the working of marketplace app plus the business model.
Understanding the buy sell marketplace
Everyone knows this already that Uber is a pioneer in the arena of on-demand economy but not everyone knows that its competitors also received a big chunk of the market share.
One of the buy sell marketplace app,OfferUpclaims that their app users, as per a survey, are spending 25 minutes per day on OfferUp app, which is equivalent to that of Snapchat and Instagram. This provides you with the information that there is great opening for all the entrepreneurs out there to create a marketplace app of their own. And the key to success in this matter is not complicated at all.
In this particular blog, we will be explaining how these local market place apps go about their business and also discuss about the business model so that will help you out in building a local market place app similar to these prominent ones like Letgo&OfferUp.
How LetGo App go about its business?
LetGo can be described as a community market place app that educates us that, it has laymen as buyers and also sellers. Second hand, Used or pre-owned products are everything in LetGo. It creates a communication line between two set of people, first who is looking to sell stuff and second who is interested in buying a product of his need at a basic price. This process is very similar to Craigslist. But the main focus of LetGo remains on its app model. More than 50% of their users run LetGo via a mobile app which concludes that it has quite a large user base.
Business model to create a sell buy marketplace app
We must also know that these local market place apps turns out to be free for their users to sign up and post whatever number of ads they want. Another fact about this is that no commission is charged for a deal to be signed between two interested parties. As far as Offer-Up founders are concerned, there sole motive is to keep their service free for everyone out there and available to every one of them. The local buy sell app generates revenue through feature listings, ad campaigns and brand promotions.
Most of the local marketplace apps like LetGo, OfferUp and Carousell, seem to have exact monetization model, despite of that if you are interested in knowing about the worthy monetization strategies for a local market place app, just continue to read.
Delivery Charges: You can play a role of mediator between customers and sellers. Hiring full time or contract with freelance delivery men is required to provide delivery services to the users. This will turn out to be convenient for both the parties and help you out to open up an extra source of revenue.
Online Transactions: One can allow a customer to make payments via your local market place app. One can earn money either by the mode charging a certain amount or some percent of all the successful deals. For this to happen, you have to have the mobile app developers integrate third party payment gateways such as Brain Tree or Stripe.
Advertising: This strategy is very useful for sellers who are looking to publish special offers; action offers or want to include the ads in ‘ system recommendations’ section in the hope of finding required customers faster.
What are the key features of Buy Sell Mobile App Learn More…….
MVP features associated with the Local Marketplace App:
By building an MVP version of the mobile app idea you have, you can find the best way to your concept to test in the market having real customers. That is why we are emphasizing on must have MVP features regarding the local market place app.
- Social Network Registration: Carousrell, LetGo and OfferUp all have inbuilt features for social network registration. The only reason of including this particular feature in the MVP version is not that helps you out in increasing the numbers of users through the social networks but also because it serves as an identity proof. As we know the fact that most of the users nowadays prefer to sign up via social networks instead of entering personal data manually.
- Search Engine Friendly Web App: Just keep this in mind that Search engine is the heart and soul of your app. The reason behind this is that once you will achieve a wide user base along with ad listings, it will become difficult for all the customers out there to get the desired product from such a large amount of published ads. And at this point; search engine will come in handy.
- Sorting and Filters Feature: One can shorten search time for his customers and then, in turn, will improve the user experience for the customers.
- Picture Capture to include in-ads: It would very beneficial to crop or edit clicked pictures or even adjust their contrast and brightness.
- In-app Payment: With this feature, customers can pay for their purchase online.
- Delivery Status: This feature is very necessary as it will determine your status in the eyes of the customers.
Involved Technology Stack
Right technology implementation is must for developing featured rich buy sell marketplace app. Therefore, for crafting out the polished app and for making it abreast across the industrial niche, the technology is certainly the one that is required to be selected very smartly.
- Mobile Platform – Android, iOS
- Web – .Net, PHP, JS etc.
- Push Notifications – Twilio, Push.io
- SMS, Voice and Phone Verification -Nexmo, Twilio
- Payments – Braintree & PayPal , Stripe, EWallets
- Database – MongoDB, Hbase, Cassandra, Postgress, Mail Chimp Integration
- Cloud Environment – AWS, Google, Azure
- Realtime Analytics – Hadoop, Spark, BigData, Apache Flink, Cisco, IBM
Buy Sell Marketplace App – Development Process
Cost to develop a Buy Sell Marketplace app:
Well, the cost of a buy-sell marketplace app largely depends on type of functionality you wish to implement in your app. However, to give an approximate value, a simple local buy sell mobile app may cost around $10,000 to $25,000, whereas a more sophisticated solution that comes with in-app chat, calls, payment, Shipment and live video features may go beyond $40,000.
U.S. based developers: – $50 to $250 per hour
Eastern Europe based developers: – $30 to $150 per hour
India based developers: – $10 to $80 per hour
nd the below-defined estimate for your app as well (For developing a reasonable app, with the limited features and Android coding, the cost in India can be calculated based on the below bifurcation of involved activities).
Technical documentation (40 hours – $1000 to $2000)
UI/UX design (60 Hours – $1500 to $2000)
Front-end and Back-end development (400 Hours – $10,000 to $ 20,000)
Polishing and bug fixing (40 hours – $1000 to $2000)
Conclusion: In order to create a local market place app such as LetGo, you can get in touch with a good Buy & Sell Markerplace App Development Company and also share your ideas. They can help you build a pioneer in the arena of local marketplace app.