How Much Does It Cost to Build a Marketplace App Like Etsy?

Build a Marketplace App Like Etsy

Online markets have drastically grown as technology improves and preferences change. Online platforms like Amazon, eBay, Etsy, Ali Express, and others are transforming how people buy and sell in real life. These sites’ success shows the Internet commerce model’s great potential and revenues.

Online Marketplace app like Etsy provide buyers convenience, variety, and access to various products, from daily staples to unique handcrafted things. Online marketplaces remain popular in this challenging digital era despite fierce competition.

While Amazon and eBay dominate online markets, smaller sites like Etsy cater to buyers of unique or handcrafted products, making the marketplace model more versatile.

Because of this, more firms are risking building trade applications like Etsy. However, stakeholders worry about app development costs. Platform support, feature selections, connections, and the technological stack affect how much an Etsy app development costs.

By considering these factors, companies can estimate their budget and make wise decisions about such marketplace app development costs. Making an online marketplace software costs $35,000 to $300,000 or more, depending on several factors discussed in the article.

What is Etsy?

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Etsy was an early internet marketplace for vintage and handcrafted products. It debuted in 2005. Rob Kalin, Chris Maguire, and Haim Schoppik founded Etsy. Artists who wished to sell worldwide flocked to it. Etsy has grown into a global marketplace for customized items and unique crafts.

Etsy, a peer-to-peer internet market, allows sellers to create online businesses. Customers may choose from a wide range of distinctive, well-made items. The platform successfully stresses originality, authenticity, and individuality to connect buyers and merchants.

Etsy attracts international buyers and sellers of vintage and handcrafted products. It has many vendors and purchasers. With over 95 million regular shoppers, Etsy is now one fo the best marketplace platforms alongside Amazon.

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How does Etsy work?

Buyers may sell their things on Etsy using a web browser or app. Etsy allows merchants to sell without a website, unlike Shopify. Etsy doesn’t make its products. Instead, it matches buyers and sellers.

Sellers may create stores and advertising on the platform, which consumers can browse and purchase. These independent enterprises and artists create their products. They handle sales, supply, and delivery. Etsy charges for buying and selling.

Anyone may purchase Etsy items, regardless of account. Like other online retailers, you may add products to a digital cart before checking out. Etsy is distinct from other marketplaces since it sells handcrafted, unique items.

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Factors Influencing the Etsy App Development Cost

Creating Marketplace app like Etsy requires essential considerations and details to determine the app’s price.

•  Android and/or iOS

One of the first decisions in app development is choosing the platform: Android, iOS, or both Android & iOS. Experts who do App development in San Francisco also recommend the same. They all have their peculiarities and can be considered expenses. Creating an app for iOS might be more costly at the start due to the numerous rules and standards that must be met to ensure that the final product is of high quality and efficiency. There are fewer device types than Android devices, making the development and testing process more accessible. 

On the other hand, Android development can take longer and be more expensive because of the high number of devices and screens for which the application has to be optimized. As mentioned before, it is always costly to develop for both platforms at the same time, and this is known as cross-platform development however, there are frameworks for this, such as React Native and Flutter. However, what these frameworks do is cut initial development costs, but at the same time, they bring in new problems, namely performance issues and access to low-level platform features.

Factors Influencing the Etsy App Development Cost

• Cost of App Design

On-demand Startup Ideas can be executed by considering the right budget. The core of the ideation and execution process shapes the user experience; therefore, they are a primary driver of costs. A good and effective app should have a good interface and, most importantly, a good user experience interface (UI) and UX. Therefore, the quality of the interface design is the key factor affecting the number of downloads and further engagement with the app. It includes the appearance, usability, and convenience that can provide the Internet resource. Some of these factors include high-quality graphics and animation, interactivity, and customization of designs, which can help improve the outcome of a design project but, at the same time, are expensive. Many features, including responsive design, which means the app must function on multiple devices and resolutions, take more time and cost. The level of detail and the specificity of the layout determines the difficulty and the skills involved, which influences the development cost.

• Features

The large number of features and the variety of options the app provides are essential factors that make up the cost. This core functionality includes user registration, product listings, search options, and simple payment gateways. However, Marketplace app like Etsy need more advanced functions to deliver highly competitive advantages and improved user experience. A FinTech Application Development Services company can understand these features in detail and device plans to develop a feature rich ecosystem for the app.  

These are features like recommendations for users based on their browsing history, a search bar with preferences, reviews from other users, share buttons for social networks, and an interface for sellers with requirements on the number of goods and sales. Each adds to the overall feature magnitude or load, which, in turn, contributes to development time and cost. 

The services of third parties, such as payment, shipping, and analytics, when incorporated, also contribute to the cost. More often than not, flexibility opens up the possibility of more failure vectors and, thus, more testing and maintenance.

• Backend Requirement

The operations of an application at the backend include storing data, managing the servers, and authenticating users, among others. The backend structure is a crucial factor in an app like Etsy that addresses many users, products and services, and transactions. This includes developing servers, databases, and APIs capable of handling large volumes and process work efficiently. 

The cost of the back end of development is not only the development of back ends but also the changes and upkeep for added users. Another important challenge is security: to ensure data safety and users’ transactions, the necessary measures must be taken, contributing to the overall difficulty and expense. This, in turn, must be complemented by the backend’s real-time updating and notification capabilities, which adds to the workload.

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• Workload

The process involves the following stages: planning, designing, coding and testing, and finally, deployment. To achieve this understanding of the nature of the project and the accomplishment of its objectives, it is necessary to create a project map that includes some time estimates. However, to give context, creating the UI/UX, writing the frontend and backend code, adding third-party integrations, and verifying that all functional and non-functional requirements are met is very laborious. Another aspect is the testing phase, which allows for revealing problems related to the app and ensuring it runs properly. These include unit testing, integration testing, system testing, and user acceptance testing. Another phase involves publishing the app in app stores, handling app store rules and regulations, and managing responses or updates. 

• Team Size

The size of your On Demand Mobile App Development  team is one of the key factors as it determines the time taken to complete a project, among other factors. A larger team will take less time in the development process since work can be arranged in parallel streams focusing on various app modules. They may consist of project managers, UI/UX designers, front-end and back-end developers, QA testers, and sometimes more people such as business analysts or DevOps engineers. 

Here is Data

Region Hourly Development Rate
US $95-$100
Asia $25-$40
UAE $60-$65
Australia $70-$90
Eastern Europe $50-$55
Western Europe $80-$90

Every team member has specific knowledge, and the collective work accomplishes the goal of creating a good app. However, it should be noted that having more team members increases the cost because of remunerations and possibly expenses on overheads. The team size should be adjusted according to the project needs as well as the size and the available funding to maintain the best possible ratio between the speed of delivery and the costs associated with the project.

• Outsourcing vs. Internal Team

Selecting between outsourcing the development or using an internal team depends on the certain criteria influencing cost, quality, and level of controlling the development. Outsourcing may be effective if cheap developers develop the intended project from a certain region. It can also offer a large knowledge base and scalably expanded compared to in-house solutions. Nevertheless, outsourcing can bring about issues like language and other cultural barriers, issues of time difference, and less control over the development process. 

On the other hand, using an internal team has its advantages, such as improved control over the work process, easier work coordination, and integration of work completed by the organizational culture and goals of the company. However, it commonly incurs higher costs such as the salaries of employees, their benefits, and physical capacities. The choice depends upon the available resources at the company’s disposal, the nature of the project to be developed and the extent of managerial intervention desired in the development process.

Features of Marketplace App like Etsy

• Accounts and User Profiles


Accounts and User Profilesce Online marketing app like Etsy require remarkable account and user profile mechanisms to ensure a secure and adaptive environment. Buyer Accounts allow the shopper to store information, past activities, purchases, and preferences, thus facilitating future transactions. Seller Accounts allow for a thorough presentation of their shops and information regarding the business description, products, policies, and customer reviews. This ensures that the sellers are credible and shoppers are more likely to patronize them. Moreover, strong user authentication, such as social login and two-factor authentication, is essential to prevent unauthorized access to users’ accounts and, as a result, secure the marketplace. Downloaded the e-commerce platform’s app over 53 million times from January 2015 to April 2023. This market is the largest for the Etsy seller app, with over 10 million downloads.



At the base of any marketplace application is the products section. Specifications whereby the seller gives detailed descriptions about a product to enable the buyer to decide whether or not to purchase the product is very important. These listings can be greatly improved by high-quality pictures taken from various angles to help potential buyers make informed decisions. Categories and Tags assist in grouping products, creating ease when users browse the platform. Promising features of inventory management tools let sellers track their inventory and update product listings as they sell inventory in a way that helps the customer avoid the frustration of out-of-stock products.

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• Search and Discovery

Search and Discovery

An effective Search Engine is crucial for pointing a customer to what he needs in a pool of unlimited options. This consists of Advanced Filters where the users can search by price, category, location, and availability, among others, to enable easy and quick search. Keywords should be fully searchable so customers can easily search for products with certain words. Product suggestions given to consumers depending on their browsing habits and interests improve the chances of consumers finding products they will like and thus improve their chances of buying those products in the future.

Secure Online Payments During Checkout


One of the vital functions of  Marketplace App like Etsy is to provide a safe and efficient solution for payment operations. While offering credit/debit cards, PayPal, and digital wallet payments to address the diverse user needs of consumers to complete their transactions. Another advantage is that working with reliable Payment Gateways guarantees fast and safe execution of transactions. 

Therefore, users’ personal information remains safeguarded. Order Confirmationibilities and Order Tracking options are crucial for offering buyers a sense of security as they receive immediate notice of their purchases and can track the delivery status of their orders, starting with dispatching and ending with delivery, thus getting a transparent and trustworthy shopping experience.

• On-Platform Communication

On-platform communication tools are effective in improving the relations between buyers and sellers. An open-ended communication system enables customers to query products, inquire about modifications, or haggle over prices, which leads to a more individualized purchasing experience. Simplified messages can be helpful for sellers to answer frequently asked questions and respond to customers even if the seller is offline. Also, the notification option, which informs users about new messages, contributes to a higher level of interaction between users and entails less misunderstanding regarding the communication process and the platform in general.

• Reviews


User Reviews and Ratings must be incorporated into the marketplace app to help consumers decide when purchasing a particular product or a service. It allows the buyers to give their product reviews and ratings, which are crucial feedback to the sellers, and it also assists the other buyers in making their decisions. Seller Ratings complement a buyer’s risk assessment and help establish a particular shop’s credibility. Review moderation tools are needed for the correct differentiation between scam or slanderous reviews and actual quality feedback, as well as to preserve the honesty and coherence of the services based on the input.

• Bookings and Availability

For marketplaces where sellers deal with services or personalized products, Bookings and Availability features are mandatory. A Booking System is an application extension that enables users to make future bookings or appointments with products or services. An Availability Calendar allows sellers to plan their time effectively and show customers their availability so that the buyer and the seller do not overbook themselves and the buyer does not make an order the seller cannot fulfill. This feature becomes even more essential when the particular business provides time-sensitive services or offers products that are available in a limited quantity.

• Admin

A well-developed Admin Panel is critical in managing the app’s Marketplace. The User Management tools allow users to manage and control registration activities, suspending user’s profiles or canceling their profiles permanently when required to ensure the list of user accounts is not compromised. Policies and Approvals enable admins to monitor listed items, messages, and reviews to eliminate any infringement of a community standard or policy. Data analysis tools are valuable to platform management since they offer details about Website users, audience engagement levels, and sales data to apprise the administrators of the areas that require enhancements and the most effective marketing approaches for the Website’s further enhancement and advancement.

• Marketing

Communication or Marketing Tools are vital in helping the sellers get the necessary market for their products. Promotions and Coupons are available in both applications, letting sellers set up specific offers and voucher codes to make customers buy. Consumers who have previously purchased from a particular selling company can receive emails from the same company informing them about new products or services, changes in service provision, or the sale of a specific product or service. Social Media App Development allows users to share listings on social media platforms such as Facebook, Instagram, and Pinterest, increasing product traffic and visibility and growing sales and activity among online shoppers.

• Reliable, SEO-Optimized Website Structure

Organic traffic can only be obtained by structuring a website to enhance its ranking and user experience that clients may expect. SEO is generally a process of improving the results page rank and the level of exposure of product listings, titles, and meta descriptions based on various search engines such as Google. This makes it possible for potential buyers to find the marketplace through natural search and other methodologies used by this search engine. 

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Mobile responsiveness is also important since the users of this platform are likely to be using mobile application devices. The high loading rates and fast server response time also help to lower the bounce rate by offering a quality user interface. The use of more elaborate markup technology like schema. org for structured data makes it easier for search engines to crawl and determine the ranking positions, making the website more user-friendly.

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How to Build a Marketplace Platform?

Making a marketplace app like Etsy takes time. The project team must take steps. To build a marketplace app like Etsy, follow these steps:


Step 1: Research and analyze

Before starting, research it. You must research your target demographic, the app’s position in the company, and more while creating a marketplace app. If you don’t know these things, you may be unable to plan your company well. Examine your competitors.

Which helps them sell more and which hinders them. Address problems and follow the trail. Following the market is usually a smart idea. People seek the best while buying. If things don’t go as planned, you may face complications.

Step 2: Platform Modeling

The team must design and construct a prototype before creating an eCommerce or other website. A prototype models the entire thing. It shows how the app will appear and perform when finalized. The development of prototypes is crucial. If done wrong, the team will have issues, and the app may not come out as planned.

The basic functionality and look of marketplace applications don’t change often, therefore difficulties are rare. Most app design changes go to the UI/UX team.

Step 3: Making and testing

You can Hire the Best Android App Development Company in the USA or use a mid level developer based on your budget and quality of output. But, once the samples are ready from them you the next step is actual creation and testing. Thus, finding devoted personnel or company, creating helpful software, and changing your brand’s image becomes paramount. While making an app like such large platform may be interesting, you must first have your own idea. Marketplace App like Etsy can be a point of inspiration for sure. 

However, customers are clever and will quickly discover that you used Amazon or Etsy concepts. Therefore, you must be diligent and imaginative while producing the sample. Test the app after building it. After development, every program contains bugs. You can see the issues while you use the program, but not from the outside.

Step 4: Grow and support team

Finally, the marketplace app may be used after development and problem-fixing. Your next priority is building a support staff for successfully growing any marketplace App like Etsy. This staff will address all app users’ questions. Ensure these professionals know your company, app development, and technical issues.

They represent your business thus, a poor word might damage it. Train support personnel to accomplish their jobs well. They may make or ruin your company. If they speak to callers well, they may be able to sell to someone who is only intrigued. If not, they may make that individual quit the app forever.

You should also make your software adaptable to larger demands. Business growth is the next stage after success. Scaling up is part of building your online business. Now you decide how large to make it.

Step 5: Improve constantly

After those steps, you must monitor the market, app, and eCommerce industry possibilities. Your company and app must adapt to the fast-changing environment to become a successful marketplace App like Etsy. Knowing your consumers makes helping them easier. Plus, business growth depends on improving things. Ask your staff and customers for feedback.

Since you’ll be making bargains, watch for retailers. Making retailers happy is the only way to keep customers pleased. Merchants update the app. No matter your efforts, you’ll have problems without them. Better relations with retailers and buyers are necessary for growth. The app must be updated regularly. Replace outdated features, add new ones, and stay current.

How Does an Online Marketplace Like Etsy Earn Money?

Marketplace Apps like Etsy are famous for selling vintage and handmade products and creative supplies.And, cost of building a marketplace website can go way high but if you are patient and use the right Mobile App Development Services, you can earn from the sites too. It earns money in several ways. Because it matches independent merchants with shoppers, Etsy provides several possibilities to generate money. This revenue stream sustains the site’s artist and producer community.

• Listing Fees

Listing fees are one of Etsy’s key revenue sources. Every eBay listing costs merchants. Etsy app development cost is $0.20 per item till 2023. This non-refundable charge covers selling the item for four months or until it sells. This method guarantees Etsy continuous revenue regardless of how many goods are sold, encouraging buyers to update their advertising.

In addition to the selling price, Etsy charges a sale fee for each item sold. This charge is a portion of the selling price, including delivery. This charge is 6.5% in 2023. Etsy benefits from seller success by collecting a percentage of every sale. The platform is motivated to maintain high sales and assist vendors in selling.

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• Payment processing fees

Etsy Payments lets customers pay using credit cards, debit cards, PayPal, Apple Pay, Google Pay, and more. Etsy charges customers a payment processing fee for accepting these payments. This charge usually includes a predetermined fee per sale and a transaction share. This simplifies and secures transactions and boosts Etsy revenue.

• The cost of advertising

Etsy’s marketing services help merchants increase sales. Etsy’s advertising function lets merchants purchase “on-site ads” to promote their products. Etsy uses “Offsite Ads,” which allows it to promote things on Google, Facebook, and Instagram. Etsy charges sellers a percentage of sales from Offsite Ads. Etsy may profit from both ad sales and ad revenue with this arrangement.

• Subscription fees

Etsy Plus offers subscriptions. Etsy Plus sellers pay a monthly subscription and enjoy additional store customization options, cheaper displaying costs, and Etsy Ads and listing credits. This subscription model offers Etsy constant revenue and adds value to purchasers who want to enhance their shop’s design and operation.

• Sales and manufacturing services

Marketplace App like Etsy are considering introducing services to support sellers. Etsy Wholesale connects customers with shops that want to purchase and resell many products. Etsy Manufacturing also links shoppers with verified artisans to create products. Etsy earns money in several ways, such as by charging fees or profits for services.

• Etsy pattern

Pattern enables merchants to create websites that operate with Etsy but are separate from it. Pattern charges a monthly subscription to construct and run e-commerce sites with additional design and branding flexibility. This tool allows purchasers to create an online presence outside of Etsy and provides Etsy with another subscription revenue stream.

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Marketplace app like Etsy have a strong business structure developed based on the reliance on artists or sellers and buyers of art products. The multiple tailwinds supporting the Etsy business model include the excellent support that the website gives to artists to sell their products, as well as the fact that it is still the cheapest platform where artists can sell their customized artifacts and collector’s items and the first-mover advantage in the niche of online art marketplaces. Etsy’s entrepreneurship ecosystem is in a continuous loop that strengthens over time. You can use the business model of Etsy and apply it to your specific local market and perhaps come up with something even more effective.


How much does it cost to develop a marketplace application?

Marketplace application development cost may be as low as $50000 or as high as $500000 based on such factors as sophistication, design quality, and the team’s geographic location. A simple application that contains rudimentary functionalities might cost between $50 000 up to $150 000, while a complex platform that incorporates unique functions may cost more than $300 000. Design, development, testing, and initial marketing fall under the costs of this phase, followed by the costs of updating and sustaining the program. Bespoke development often costs more than participating in ready-made solutions or using low-code platforms, but it has more potential for growth.

 Why should you build a marketplace app?

Starting an application for a marketplace can be very useful, and numerous benefits may accrue. To begin with, it establishes a social network where buyers and sellers come together, thus promoting social relations and business transactions. It allows you to leverage the expanding e-commerce market to achieve substantial revenues by charging a commission for listing and advertising products and transactions. A marketplace app also has the advantage of adding new features and services with time.

How much time does it take to create an online marketplace like Etsy?

Creating an online marketplace like Etsy can take 6 to 12 months, depending on the project’s nature and scale. The development process involves several stages: analysis and specification, architectural and conceptual design, system and software design, implementation and construction, verification and validation, and maintenance. A simple software package with core functions can be developed in 6 months, though a complex platform with all the advanced functions, connectors, and well-thought-scalable architecture might take 12 months or more. Adequate planning, having a great development team, and setting the correct specifications for the project are necessary to achieve goals on time to avoid a late launch.


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