E-commerce Mobile App Development Cost Breakdown in 2025

How much does it cost to develop an eCommerce app and is undertaking that cost worth it in 2025? Let us answer the second question first:

• By 2025, mobile commerce will amount to over 10% of all retail sales in the US
• Similar trends are propping up in most major countries – from Brazil to India
• How much money are we talking about?
• Well in 2023, eCommerce apps generated over $3.88 trillion in revenue worldwide
• We can expect that figure to be significantly higher in 2025

Big-name brands like Amazon, Shopee, Meesho, Flipkart, and Rakuten are, of course, set to be the biggest beneficiaries of this eCommerce app boom. But, there is plenty of money to be made for smaller, newer apps as well.

E-commerce App Development Cost Summary

So, how much does eCommerce mobile app development cost?

• For basic eCommerce apps with only essential features like user registration and product galleries – development costs range from $10k to $50k
• For mid-level eCommerce apps with advanced features like custom interfaces or multiple payment gateways, costs increase to between $50k to $100k
• For highly advanced and customized eCommerce apps with complex functionalities, costs can exceed $100k and reach up to $500k or more

What is the logic behind these eCommerce mobile app development cost ranges? Let us find out.

Types of E-commerce Apps and Their Development Costs

Are you planning to build a single-vendor eCommerce app or a multi-vendor eCommerce app?

Single Vendor Apps

• A single-vendor app is an online store where one seller offers products or services to multiple customers.
• The relationship is direct between the seller and the buyer
• Examples of single-vendor  apps include Benjamin Hardman Studio, Piper & Scoot, and Lenskart
• Development costs for a basic single vendor app typically range from $10k to $25k

Multi-Vendor Apps

• A multi-vendor app allows multiple sellers to offer their products on a single platform
• This model creates a marketplace where customers can choose from various sellers
• Amazon, eBay, and Etsy are popular examples of multi-vendor, marketplace apps
• Multi-vendor eCommerce app development costs are generally higher, ranging from $50k to $150k

Choosing between single or multi-vendor apps depends on your business goals:

• Single-vendor apps offer brand control and simpler management
• But, they require more effort in marketing
• Multi-vendor apps provide a wider selection and shared traffic
• But, they come with higher development costs and complexities

Here is another fork you’ll hit on your quest to building an eCommerce app – off-the-shelf solutions vs custom development:

Off-the-Shelf

• Off-the-shelf eCommerce platforms are pre-built software solutions
• These platforms are already developed, tested, and used by multiple businesses
• Businesses can purchase and implement them quickly
• Off-the-shelf platforms are appealing because they are very cost-effective
• Initial costs for these template solutions range from $15k to $50k
• Examples of off-the-shelf solutions include Shopify, WooCommerce, BigCommerce, and Magento

Custom eCommerce Development

• Custom eCommerce apps are built from scratch to meet specific business requirements.
• They allow for highly personalized shopping experiences
• Businesses can easily modify/expand these custom apps as they grow
• Custom eCommerce app costs range from $30k to $500k – depending on complexity and features
• Building a custom app also takes longer
• Edamama and Noon are popular examples of custom eCommerce apps

Are custom eCommerce app costs worth it?

• Depends on your business goals
• Off-the-shelf options are more affordable and quicker to implement
• But, they lack flexibility and are not ideal for ambitious brands
• Custom solutions offer tailored features and are easier to scale
• But, they come with higher upfront + maintenance costs and longer development times

Factors Influencing E-commerce App Development Cost

Now, let us dissect all the major cost factors in eCommerce app development:

Platforms Used

• The first decision is whether to develop your app for iOS, Android, or both.
• Developing for a single platform is usually more affordable
• Costs for basic, Android or iOS-only eCommerce apps range from $10k to $25k
• However, this approach limits your audience’s reach
• Cross-platform eCommerce app development using frameworks like React Native or Flutter is more expensive
• It can increase costs to approximately $30k to $50k
• But, it allows access to a broader audience

Complexity of Features

The complexity of your eCommerce app significantly affects development costs:

• A basic eCommerce app with essential features like product listings and checkout does not cost much
• An enterprise-grade eCommerce app with advanced functionalities (e.g., AI recommendations) costs more
• Each added feature requires additional development time + expertise which justifiably increases overall costs

For instance:

• Basic features (catalog, cart, product catalog, order tracking) cost in the range of $15k to $30k
• Advanced features (2F user authentication, AI recommendations) cost in the range of $40k to $100k

Design and User Experience

• A well-designed eCommerce app user interface (UI) and user experience (UX) are critical for engaging shoppers.
• Investing in professional UI/UX design can radically enhance your app’s appeal.
• But, it also raises overall costs

Backend Technology

The backend infrastructure of your eCommerce app plays a crucial role in its overall:

• Performance
• Scalability
• Security

This infrastructure covers two critical components:

• Inventory management
• User management systems

Here are the costs associated with these elements:

Inventory Management Costs

An efficient inventory management system is vital for:

• Tracking stock levels
• Managing orders
• Ensuring product availability

The costs associated with implementing an effective inventory management system vary widely based on

• Total features
• User count
• Integration needs

The average cost for inventory management software is:

• Approximately $175 per user license per month
• This fee can fluctuate based on the complexity of the software and the no. Of users requiring access
• For small businesses, basic packages may range from $50 to $100 per month
• Larger enterprises could face costs exceeding $10k per month for advanced solutions

Advanced functionalities like predictive analytics, multi-location support, or integration with third-party services can significantly increase costs.

User Management Costs

A robust user management system is essential for providing a secure + personalized shopping experience. User management involves:

• Handling customer accounts
• Giving user permissions
• Data security

Here are the major cost factors in backend eCommerce app development:

• Implementing secure user authentication systems (e.g., OAuth or JWT) can incur costs ranging from $5k to $15k
• Integrating user management with other systems (like marketing tools or analytics) can increase costs
• Each integration might cost between $2k to $10k
• Hiring support staff or using third-party services (to provide customer support) can add $1.5k to $5k to the monthly costs

Overall expect to spend $15k to $50k total on your eCommerce app’s backend infrastructure.

Integration Requirements

Integrating third-party systems like…

• Payment gateways (e.g., PayPal, Stripe)
• Customer relationship management (CRM) systems
• Analytics tools

… adds to your costs. Integration costs typically range from $5k to $20k

Personalized Requirements

eCommerce app Customization comes at a premium:

• Custom animations or unique UI elements add $5k to $15k to your design budget
• SEO optimization adds $2k to $5k

Creating tailor-made features = more time and expertise from developers = more costs.

Detailed Breakdown of E-commerce App Development Cost

Each phase of eCommerce app development incurs specific costs that can vary significantly based on:

• Complexity
• Features
• Your tech-stack
• The developers working on your app

Let us dive deeper into the figures and the phases with a more in-depth breakdown of eCommerce app development costs:

Project Planning and Research

The initial phase of project planning is essential for:

• Defining requirements
• Identifying the target audience
• Analyzing market trends

This phase typically requires 20 to 80 hours of work:

• The average development rate during this period is between $50 and $150 per hour
• Total costs for this phase range from $1k to $12k

Design (UI/UX)

• This process generally takes 100 to 300 hours
• It costs between $5,000 and $30,000 or more
• A well-executed design enhances user satisfaction and retention
• It is the most worthwhile investment you can make for your ecommerce app

Development

• The core development phase involves coding the app’s functionalities
• For a basic ecommerce app, this can require 400 to 800 hours
• Costs for this phase range from $20k to $80k or higher

Testing

• Quality assurance through testing is vital for ensuring the app operates reliably
• This phase usually requires 100 to 200 hours
• Costs for this phase range between $5k to $10k
• Rigorous testing helps identify bugs and performance issues before launch

Backend Development

Backend development involves creating:

• Server-side logic
• Databases
• APIs that support the app’s functionality

So, this phase can require over 500 hours to complete and it can cost $10k to $25k or higher

Integration of APIs

• Integrating third-party APIs require an additional 40 to 80 hours of work
• Costs for this phase range from $2k to $4k

Deployment and Launch

• Finalizing development and making the app available to users are critical steps.
• A successful launch is vital for triggering initial user adoption and reviews.
• This phase typically requires 20 to 40 hours
• Costs range between $1k to $2k

Post-Launch Maintenance and Updates

• Ongoing maintenance is essential for keeping the app updated
• Routine updates are necessary to ensure competitiveness and meet evolving user needs
• Developers also have to address issues as they emerge
• Monthly maintenance efforts can range from 20 to 40 hours
• Annual eCommerce app maintenance costs range from $2.5k to $15k

Development Team Location

The geographical location of your development team significantly impacts overall costs:

• U.S.-based developers may charge between $100-200 per hour
• Developers in Eastern Europe might charge less than half of that – around $30-40 per hour
• Indian developers often charge as low as $20 per hour

Choosing a location with lower labor costs can substantially reduce overall expenses while maintaining quality.

Summary of Cost Breakdown

Cost Estimation by Region: Where to Develop an E-commerce App?

Regional eCommerce app development costs vary a lot based on

• Local market conditions
• Expertise levels
• Living costs

Here is a detailed comparison of regional eCommerce app development costs across major regions:

If you want affordable eCommerce app developers, outsourcing is your best option:

• You can slash your development budget by 40-60%
• Outsourcing allows companies to tap into expertise that may not be available locally
• Outsourcing provides flexibility in scaling teams up/down based on project requirements without the long-term commitments that come with local hires

Here are, the average project costs:

However, be wary of the potential drawbacks of working with offshore, affordable eCommerce app developers:

• Time zone differences
• Language barriers
• Miscommunication and delays in project timelines.
• Ensuring consistent quality can be challenging when working with remote teams
• You may have to invest extra time in vetting and managing outsourced teams
• Different work cultures may negatively affect project execution

Hiring a local team has many benefits like:

• Better communication
• Better collaboration
• Immediate feedback on project progress
• Quality control is easier

On the other hand, there are many drawbacks to staying local:

• You have to pay higher hourly rates
• You have a limited talent pool of developers to pick from
• Finding and hiring the right local talent can a while

If you stay local, the size of your eCommerce app development team also impacts overall costs:

Remember:

• Larger project = requirement for an extensive team = increased hiring costs

Similarly:

• Projects with extended timelines = additional labor costs = higher overall costs
• Rapidly developed projects = larger teams working simultaneously = higher overall costs

Hidden Costs in E-commerce App Development to Consider

While we have covered most bases, there are still some hidden eCommerce app development costs that might pop up along the way. Here are some ‘unexpected’ eCommerce app expenses that you should expect:

Third-Party Integrations

• Integrating third-party shipping solutions or the latest analytics tools has a cost
• Keep $1k to $10k aside for these integrations
• Each integration may require ongoing fees for usage/licensing as well

Payment Processing Fees

• Payment processors typically charge transaction fees
• These fees can range from 2% to 5% per transaction
• If your sales volumes are high, these fees accumulate quickly
• Keep a note of them in your budget

Security Certifications

• Obtaining security certifications like PCI DSS is vital
• Compliance audits and subsequent implementation of these security measures cost you between $5k to $15k

Hosting and Infrastructure Costs

• Monthly hosting costs can range from $20 to $500
• Additional cloud services may have variable pricing based on usage
• More traffic = more of these recurring costs

Bug Fixes

• Budget an additional $1k to $5k annually for bug fixes and performance enhancements

Budgeting for Hidden Costs – More Tips

• Continuously assess your budget throughout the development process to account for any changes in scope
• Set aside a contingency fund of about 20% of your total budget to cover unexpected expenses
• Partnering with a reputable eCommerce app development company can provide insights into potential hidden costs based on their experience
• After launch, keep track of ongoing expenses related to maintenance, updates, and transaction fees to ensure they align with your budget projections

How to Minimize E-commerce App Development Costs?

If the price tags in this blog have made you pause, do not worry – there are many ways to reduce eCommerce app development cost without sacrificing quality:

Start Small with MVP Development

• Start by developing a Minimum Viable Product (MVP) first
• An MVP only has the core features necessary to launch your app
• It allows you to enter and test the market quickly
• Understand what the market and your users want first
• Then, make more informed decisions about future enhancements without overspending upfront

Use Pre-Built Solutions

• Consider leveraging pre-built eCommerce app templates or frameworks
• Turn to platforms like Shopify and WooCommerce to cut down on development costs

Outsource Wisely

• As already discussed, outsourcing development can lead to substantial savings
• Vet potential offshore developers
• Review hundreds of portfolios
• Contact them to assess their communication skills
• With Proper due diligence, you might find affordable, yet high-quality eCommerce app developers

Use Open-Source Tools

• Use open-source tools and libraries to avoid fully custom (aka more expensive) development
• Explore open-source frameworks like Magento or Presta-Shop 

 Work with Experienced Developers

• Investing in experienced developers and UI/UX designers may seem like a higher upfront cost
• But it can save you a ton of money in the long run by avoiding costly revisions and rework

Final Cost Range and Timeline for E-commerce App Development

Before you leave, let us go through the eCommerce app cost range again. Here is our final eCommerce app development timeline + cost chart. Keep this chart in front of you when you kickstart your eCommerce app development plans:

Conclusion  

Here is what we have learned in this blog:

• eCommerce apps are booming
• Now is the perfect time to jump into the world of eCommerce app development
• Effective planning and budgeting are critical to creating a profitable eCommerce app
• Know what features and tech you want from your app before diving in
• You should consult eCommerce app developers from different regions of the world to get the best deal

Now that learning is over, it is time for action – get an eCommerce app development estimate now! Not sure where to start?

Itobuz is happy to help! We have extensive prior experience in eCommerce app development.

We are more than well-equipped to bring your eCommerce vision to life. Plus, our custom app development company always offers free quotes.

We are ever-ready for a conversation about how we can assist you.

Contact us now to learn how Itobuz can help you build a successful eCommerce app that meets your needs (while staying within budget)!