How much does an eCommerce app cost by a reliable eCommerce app development company?

 

How much does e-commerce app development cost if you hire an experienced e-commerce development company?

The average cost of building a good quality e-commerce app ranges between $5,000 to $500,000 per platform (Android/iOS). Various factors influence the final price of the app that includes:

• The development cost depends on the size and location of the e-commerce development company
  
  
• The complexity of the app and the number of features required
  
  
• Back-end infrastructure and integrated APIs 
  
  
• UX/UI design 
  
  
• The app development approach (native, hybrid, web, etc.)
  
  

The number of platforms the app is developed for (Android, iOS).


Building a mobile app helps an e-commerce business expand its outreach across geographies and engage more customers worldwide. Here’s your in-depth guide on how much does e-commerce app development cost in 2021.

Understanding the Basics of eCommerce App Development Cost

•          Native vs Hybrid App
  
  The final cost of your e-commerce app depends on the approach, native or hybrid. A native app is built for the specific Operating System (OS), Android or iOS. Since platform-specific code is written, there is no code shareability, which means that separate teams must develop a native app, inflating development costs. However, in terms of functionality and performance, a native app is unmatchable. In sharp contrast, a hybrid or cross-platform app has common code that can be compiled into the native wrapper for each platform. The choice between a native or hybrid e-commerce app is governed by the budget you have. 

• Integrating Advanced Features and APIs
  
  Basic e-commerce apps, in particular, require specific functionalities such as a shopping cart, user registration, social media, detailed product catalogs, product-specific pages, user check-out system, and payment gateway integration. Since the e-commerce ecosystem is complex, it requires a well-planned admin and back-end panel to manage inventory, orders, payments, and logistics. API integration helps achieve this functionality in an e-commerce app. The cost of developing your APIs in-house is significantly higher than using third-party APIs, which drives up the cost of app development.

•       Pricing Model
  
  There are two basic pricing models that developers charge for building an e-commerce app: fixed price and time & material.
  
  1.    Fixed Price: The fixed price model implies a developer charging a one-time payment for the app project for a specific timeline. This model is best suited for smaller projects with a well-defined scope of work. The most significant advantage of the fixed price model is that the client knows the app’s exact cost even before the project’s commencement. 
  
  2. Time & Material: The T&M pricing model is most suitable for large e-commerce app projects with dynamic requirements. The developer charges the client based on the time and material consumed during the project’s duration; the pricing is typically calculated at hourly rates. This model provides flexibility in complex app development projects. 

•       UI/UX Design
  
  The UI/UX is a critical element of an e-commerce app as it influences conversions by providing a seamless shopping experience. The journey to designing a great app starts with defining customer journeys, wireframes, and prototypes. Defining customer journey means describing how the user will interact with your e-commerce app, including its screens and functions. The next step is wireframing that includes a detailed layout of each app’s screen with buttons, icons, and other visual elements. A prototype of your e-commerce app helps bring your business idea to life and provides the users with an opportunity to test your app before its official launch. The received feedback helps improve the overall quality of the app. The cost of developing an e-commerce app increases according to the number of wireframes and UI/UX design elements required.

•      Platform (Android vs iOS)
  
  According to Statista, Android is the leading platform in terms of market share, with 88% of smartphones sold being Android. Targeting the Android OS means expanding your outreach to a broader global audience. However, developing an Android app takes more time due to device fragmentation and numerous OEMs. An Android app must perform optimally across screens and various devices, which requires rigorous QA testing. However, with iOS, Apple is the sole manufacturer, which means zero or little compatibility issues. In terms of revenue and app spend, iOS scores much higher above Android. The choice of the platform also depends on the geographical location of your target audience. For example, iOS is the leading platform in geographies such as North America and Australia. 

•     Developer’s Location (Onshore vs Offshore)
  
  The cost of an e-commerce app depends on the location of your e-commerce app development vendor. For large e-commerce projects, offshore software development is the ideal model as it provides economies of scale. Globally located offshore teams can deliver you an app at approximately one-third the cost of what it would cost in hiring an onshore software development vendor. While developers in the US and UK charge roughly $180 to $250 per hour, developers located in India can deliver the same e-commerce app at an hourly rate of $10-$80. Eastern Europe is another popular software outsourcing destination, with countries like Ukraine offering developers at $20 to %120 per hour. 

•      Maintenance & Support
  
  The initial cost of developing an e-commerce app does not include post-launch support and maintenance. A business must evaluate the cost of maintaining the app through its entire life cycle, which should not exceed 20-30% of the total budget assigned for the app. For example, if your allocated budget for developing the app is $100,000, the total cost of maintenance and post-go-live support should not be more than $20,000. 

•      Concluding Lines
  
  Considering the aspects mentioned above, the total cost of developing good quality and feature-rich e-commerce app should be anywhere between $5,000 and $500,000. A simple formula used for calculating app development cost is:
  
  
  { Total Development Time } x { Hourly Rate } = { Total Cost of App Development }
  
  

A reliable e-commerce app development company provides a precise estimate of the cost before starting the project along with an SLA. The quote includes your project’s description, business, and technical requirements.