costs to build an e-commerce platform
Today “E-commerce” has become an indispensable part of our lives. Whether it be any sector like food, fashion, booking, etc., it has proved crucial and beneficial. The COVID-19 outbreak excelled in raising e-commerce sales by an astonishing 25% by the end of 2020, expected to double in case 2021 passes with the same conditions pushing small, medium, and large businesses to strive to become online investors and demand IT firms for the development of e-commerce platforms. Did it come to your mind to upgrade your business with an online platform but got speculative about its cost? We are not presenting a bill, but this blog is here to answer your questions like:
  • How much do we need to invest in developing an e-commerce platform?
  • What elements do we need to consider while determining the cost?

How much does it take to build an e-commerce platform?

How is the cost estimation done?

Whether you are looking to develop an E-commerce mobile app or website, The cost estimation for any project is carried out by technical Leads, Business analyst, and other experts and depends on different variables:
  • The project demands
  • Chosen technologies
  • Intended user experience
  • Projected characteristics
  • Time and people working on the project
The definitive price is up to how specific your requirements are and how much effort it takes to elaborate on every detail you need.

Cost interval

The very fundamental general estimation for an e-Commerce website in 2020 can make your pockets empty from $5,000 to $200,000 with hopes of no more. All depending on the scale you are looking for and your business needs. It is reasonable that a big brand’s website costs 3 or 4 times more than a small shop. Logically the various features, stages, scope, and method of development affect the cost of building an e-Commerce platform. There are different development methods, from cheap general Open-Source and SaaS e-Commerce platforms to effective, flexible, and custom e-Commerce development.

Different components that control the cost

Let’s have a thorough look at the different elements of an eCommerce website and how they impact the overall cost:

Selection of platforms

Do you need a website? An app ? or both? The cost majorly relies on the type of platform you intend to develop. There is a vast difference between wanting to create a parent platform like “Myntra” that does host other vendors and take a commission, an online store platform that only sells your product, or a combined platform that does both like “Amazon.” When it comes to apps opting for a native platform is relatively less costly than going for a cross-platform app.

The UI/UX Design

Depending on the type of your business and its customers, a fashion-centric e-commerce website requires a more delicate design than a simple online hardware store. Your e-commerce platform needs to be impressive at first sight as it is necessary for your sales. Design plays an essential role in making your online platform stand out. Design cost depends on how engaging you want the user-experience to be.

Estimated deadline and team capacity

The cost varies if you are in haste. The operation efficiency depends on the number of people involved in the development process. It is evident that the faster you want to develop the platform, the bigger team it will require to work on it.

The Functional features

You need to pay for the functional features. You don’t have any other option. They are the primary features that make your platform work, and commonly they make the essential fixed cost of your e-commerce platform. Given below is a list of some main features and their cost to consider:
  • Registration & login: E-commerce platforms must be flexible and adaptive, allowing quick research for users’ needs inclinations.
 
  • Payment and order process: The ordering process should be uncomplicated, speedy, secure, efficient, and helpful. Saving the delivery address and payment details helps in quick checkouts.
 
  • Platform Management: Give full control over the platform to Manage the product per categories & subcategories, add images, videos, QR code, and product details .etc
 
  • Shopping cart: To help the customer take a last look at his items and decide to buy them
 
  • Customer Support: The customer can quickly use the platform to get customer support regarding any query, like delay in delivery or items missing in the order refund issues.
 
  • Review system: Using this feature, customers can give feedback about a specific item after ordering or about their general experience with your website. It is an essential feature, and it helps to build the brand value.

Advanced features

These features put a considerable burden on your pockets, yet these are the ones that also returns a profit. They play a massive role in shaping the user experience that results in customer satisfaction and loyalty. In 2020 some of these features have become indispensable for businesses. By 2021 they are expected even to become inevitable basics. You can compromise your requirements for advanced features according to your budget and needs. But by the end of the day, who wants to settle an online store that is not engaging?

Some of the trending features are:

  • Smart assistance: AIML driven platforms work to fasten up the process by suggesting options according to the user’s previous orders. It analyses the customer’s favorite choices and informs him about any promotions.
 
  • Order tracking: Keeping track of orders builds trust between user and business as it helps users know the exact time of delivery and expect to get hot and fresh food.
 
  • Community Chat options: The Chat window enables interaction with customers or even includes a social platform where customers can share experiences and advice.
 
  • Content Management: A smooth and easy solution to manage contents and documents.
 
  • Push Notifications: To get real-time personalized and bulk notifications that help build a relationship with the customer.
 
  • Customized Dashboard: The users can easily set up and manage a personalized theme dashboard according to their preferences.
 
  • Shipping: Allowing the user to control his experience by choosing the shipping method and timing according to his availability.
 
  • Statistics: The well-defined structure gives you insights about revenue generation for each vendor or typology of product.
 
  • Multiple languages wish list: Customizing advanced features will naturally require a bigger budget starting from 10000$. But that’s an investment. The more user-friendly the website is, the easier it becomes to engage customers.

Conclusion

A great website or mobile app is only half the job done in building a successful e-Commerce business. Customer satisfaction and loyalty demand how well you manage your services. It means delivering on time, guaranty of product quality, and refunding on customer demand. Consumer fulfillment service is going to be the backbone of your e-Commerce business.

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