A marketplace app costs more than a regular app because you build for two kinds of users plus the money that moves between them. With us, a first version costs $5,000 to $15,000 and takes 2 to 4 weeks if you cut it to one side first, one city or category, and one way to pay. Bigger launches cost more: at $39 to $55 an hour, every extra 100 hours is $3,900 to $5,500.
The build is the smaller risk. The bigger one is the cold start: a marketplace with buyers and no sellers, or sellers and no buyers, is empty for both. Spend part of your budget on that problem, not only on features.
LEV’s story shows what spending in the wrong place costs. Before LEV came to us, the client had spent $200,000 with another team, with no results. We released LEV’s first version a month after we started and launched it on the market four months in. It reached 2,600+ users and 15+ partner businesses (LEV case study).
What you pay for: the parts of a marketplace
Most marketplace apps are made of the same five or six parts. Your price depends on how many you build in the first version and how deep each one goes.
| Part | Who uses it | First version or later |
|---|---|---|
| Buyer app: browse, search or map, book or buy, chat | Customers | First version |
| Seller or provider app or panel: listings, calendar, orders | Sellers, providers | First version, or web-only at first |
| Payments and payouts: take money, keep a fee, pay sellers | Everyone | First version |
| Admin panel: users, listings, refunds, disputes | Your team | First version |
| Reviews and ratings | Buyers, then sellers | Soon after launch |
| Business or advertiser panel, promotions, loyalty | Partners | Later |
LEV shows what a full version looks like. It’s four systems: the mobile app for iPhone and Android, the backend, a system admin panel and a separate admin panel for partner businesses. Dog owners see each other on a live map, add friends, chat and plan play dates. They collect digital “bones” on walks and swap them for offers from partner businesses in the LEV Marketplace.
What moves the price most
How many sides you launch at once
Every side has its own sign-up, screens and notifications. Launching the buyer app, the seller app and a partner panel together means paying for all three before you know which one matters. Launching one side first, with the other side served by a simple web page or by you by hand, is one of the biggest savings you can make.
How money moves
A marketplace that takes a fee on every booking needs payments, payouts to sellers, refunds and a way to handle disputes. With Stripe Connect, for example, a destination charge takes the payment on your platform, moves the money to the seller’s connected account and keeps your fee. Your platform’s balance pays Stripe’s fees, refunds and chargebacks (Stripe, destination charges). Listing fees or ad packages are simpler to build than a fee on every sale. Our post on creating a booking app with deposits walks through the payment side in detail.
Maps and real-time features
Live maps, real-time location and chat cost more than lists and forms. On LEV, the map had to show hundreds of items without looking cluttered, so we built filtering and clustering. The map reached 13,300+ pins.
Building on what you already have
If you already have a backend, an API and designs, the app is cheaper because you only build the mobile front end. Traza, an Australian marketplace for tattoo artists, had a documented API and finished Figma designs. We built its artist app on top of them for a budget under $20,000 (Traza case study).
The cold start: the problem money can’t fix
A two-sided marketplace is worth nothing to the first buyer if there are no sellers, and the reverse. This is the cold-start problem, and no amount of code solves it on its own. Three ideas help, and each one changes what you build first.
Shrink the market
Lenny Rachitsky interviewed people from 17 marketplace companies, including Airbnb, Uber and Instacart. With the exception of one company, every marketplace he interviewed limited its first market, by city or by category, to reach critical mass faster (Lenny’s Newsletter). For your budget, that means one city and one category in the first version, not a country and a menu of services.
Start with the side that’s harder to get
In most of the companies Lenny studied, supply was the hard side. Instacart’s co-founder put it simply: “We always onboarded supply ahead of demand”. In 3 of the 17 cases, though, supply took care of itself and demand was the problem (Lenny’s Newsletter, part 2).
Traza followed that order. Artists were already taking real bookings on the website, so the first mobile app was for artists: requests, sessions, deposits, chat and client notes. The client-side app was scoped and started as a second phase, reusing the artist-side logic.
Be useful to one person
Chris Dixon’s advice for networks is to attract users with a tool that’s useful on its own, then get them to join the network over time (Chris Dixon, Come for the tool, stay for the network).
LEV gives a dog owner reasons to open the app before their friends join: a map of dog-friendly places, the nearest vet clinic or dog park, and bones to collect on every walk. Users can add community-verified dog-friendly businesses to the map themselves. The marketplace and the community grow on top of that.
For more on what comes after launch, read our guide on how to scale a marketplace, which is about getting buyers and sellers to meet often enough in one market before you grow.
What two marketplace apps took
| LEV | Traza | |
|---|---|---|
| What it is | Map, community and marketplace for dog owners (iOS and Android) | Booking marketplace for tattoo artists in Australia: artist app |
| Starting point | $200,000 spent with another team, no results | Working website, API and Figma designs, no mobile developers |
| Team | Business analyst/PM, Scrum master, backend, Flutter, frontend, QA, DevOps | 2 React Native developers, delivery manager, QA |
| Time | First version in 1 month; market launch in 4 months; version 2 in 8 months | Fixed launch date, met; live on both stores in early 2026 |
| Budget | Not public | Under $20,000 |
| Result | 2,600+ users, 15+ partner businesses, 13,300+ map pins, $700K pre-seed raised | Approved on the App Store and Google Play; client side started next |
Two things kept LEV fast. We worked in 2-week sprints and delivered 6 to 8 fully tested features in each one. And we used ready-made modules for standard parts like sign-up, login and a basic admin panel, so the team spent its time on the map and the marketplace.
Traza stayed on budget through weekly cycles in which the client could change priorities. When the custom calendar grew bigger than planned, we cut it to a first version and moved push notifications and booking creation forward. Mid-project, the client added two more epics, and they still fit in the budget.
How to cut the first version
- One side in the app; serve the other side through a web form or by hand.
- One city, one category, one way to pay.
- Do things by hand behind the scenes until volume forces you to automate. Our guide on how to validate a startup idea covers this “manual MVP” step.
- Use ready-made parts for login, payments and admin.
- Consider a no-code tool if you only need to test demand. We compare the options in no-code vs custom code for an MVP.
What a marketplace costs to run
After launch, budget for:
- Payment fees on every transaction, plus payout fees if your processor charges them.
- App store accounts: $99 a year for Apple and a one-time $25 for Google Play.
- Maps and location services if you use them, which are billed by usage.
- Servers, storage and push notifications that grow with your users.
- People: someone to approve sellers, handle disputes and answer support.
- New features. After launch, we usually work in weekly sprints that cost about $3,000 to $4,500 a week for a small team.
If you’re selling software, not running a marketplace
Some founders who say “marketplace” are building something else: software that studios, salons or clinics pay for every month to manage their own bookings. That’s a SaaS product, not a two-sided marketplace. It has no cold start, because each customer gets value alone, but it needs subscriptions, accounts per business and onboarding. Our SaaS development page covers that model.
Don’t repeat the $200,000 lesson
LEV came to us after a large spend with no product to show. You can lower that risk with a few habits:
- Ask for a working release in weeks, not a demo at the end.
- See a live demo at the end of every sprint.
- Keep your code, cloud accounts and store accounts in your own name.
- If a project is already stuck, get a code audit before you spend more. That’s where our software project rescue work starts.
When you’re ready to compare teams for marketplace app development, ask each one which marketplace they launched, how long the first release took and which side they built first. Our older guide on launching a niche marketplace has more on choosing the niche itself.
FAQ
How much does it cost to build a marketplace app?
A first version with one side in the app, payments and an admin panel costs $5,000 to $15,000 with us and takes 2 to 4 weeks. Launching both sides, live maps or a partner panel costs more. At $39 to $55 an hour, every extra 100 hours is $3,900 to $5,500.
How long does it take to build a marketplace app?
A focused first version takes 2 to 4 weeks with us. LEV, a map, community and marketplace app for dog owners, had its first version a month after we started, launched on the market in 4 months and reached version 2 in 8 months.
What is the cold-start problem in a two-sided marketplace?
A new marketplace is useless to buyers without sellers and useless to sellers without buyers. To get past it, start in one city or category, bring in the harder side first (usually supply), and give early users a reason to use the app on their own.
Should a marketplace launch supply or demand first?
Usually supply. In Lenny Rachitsky’s interviews with 17 marketplace companies, supply was the main constraint for most, and demand was the bottleneck in only 3. Traza followed that order: its first app was for tattoo artists, and the client app came next.
How does a marketplace app take a commission?
The client pays on your platform, the payment processor moves the seller’s share to the seller’s account, and you keep a fee. With Stripe Connect destination charges, your platform’s balance also covers Stripe’s fees, refunds and chargebacks, so set your fee with that in mind.
Is it cheaper to start a marketplace on the web?
Often, yes. One web app serves both sides on every device and skips app store review. Add mobile apps when one side needs a phone to do its job. Traza had a working website first and added an artist app because artists work on their feet, between clients.
See what your marketplace would cost
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