amazon like app development

Planning to build an eCommerce app like Amazon? It is a great idea. 


Because eCommerce around the globe is on the rise at a relentless pace. It’s currently representing three-quarters of overall retail growth and worldwide e-commerce sales are anticipated to reach an astounding $3.9 trillion USD in 2020. 

Amazon app development

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And, taking advantage of a growing market is always a good business idea. But, how should you create an eCommerce marketplace app like Amazon? What features should you integrate in it to make it stand out in the market? What should be its business model?

Before you jump into eCommerce app development – you must have the answers to the above-mentioned questions. To find the same, let’s delve deeper.

How Marketplace Apps Like Amazon Work?

Amazon – founded by Jeff Bezos in the year 1994 – is an online marketplace that lets people shop from a wide range of sources. As an operator, it doesn’t own any stock, however, its business is to present others’ stock to users and facilitate a transaction. Amazon is the best example of an online marketplace as it sells everything to everyone around the world and that too easily and effectively.

If you are planning to replicate the success of Amazon with your own eCommerce app, you must know the way it works. So, let’s find out:

What Value Proposition Does Amazon Offer?

The value proposition refers to the value an organization or business provides to its customers. It is an impression of the benefits that a client gets from using, buying or consuming a particular service or product in comparison with other accessible options. Amazon treats various classes of customers but, all-in-all, there are consumers and sellers that meet on amazon’s platform. 

Amazon’s CEO and Founder, Jeff Bezos, believes in a “genuinely customer-centric” approach and runs the platform on the basis of the same principles. The platform provides the utmost personalization and special conditions that are much better than those of competitors. Let’s see all of them:

Amazon’s Value Proposition for Consumers:

  • Lowest prices of items 
  • Extensive range of products 
  • Easy payments
  • Free shipment 
  • Worldwide delivery
  • Amazing features like shopping in native languages, tracking, 24/7 customer support, ETA and many others.

Amazon’s Value Proposition for Sellers:

  • An amazing platform for selling 
  • A place where sellers can advertise their services 
  • Access to a huge user base
  • The option to make an Amazon store out of the brand’s very own shop to secure intellectual property and sell utilizing Amazon’s order framework. 

That’s how Amazon provides value to its consumers as well as sellers by offering them various benefits and great user experience.

What is Amazon’s Revenue Model?

As per Statista, in 2018, Amazon’s net revenue was 232.88B U.S. dollars, up from 177.86B U.S. dollars in 2017. Have a look at its year by year revenue growth:

marketplace app development

Amazon’s online store contributes 61% of the overall company revenue. However, things will get a bit different if we dig deeper. So, don’t get overwhelmed with its $232 billion revenue in 2018.

Despite Amazon’s strength in the e-Commerce business, online sales are not really a primary profit source for the organization. Rather, its cloud computing division, Amazon Web Services, has really created most of Amazon’s operating system since 2016. Profits from publicizing and third-party sellers are additionally booming. Because of a low margin of about 3 percent, the net income was fundamentally less a year ago at $10 B. 

amazon like app

Marketplaces apps like Amazon usually follow a hybrid business model,  which implies that they consolidate various methods of monetization that prompts more sustainable revenue. 

The company generates revenue using the combination of commissions, subscriptions, and flat rates:

  • Commissions: This source of revenue is the most well-known method of making money using marketplace apps. At Amazon, the commissions depend on the product category and averagely comes out to be 12-16%. 
  • Flat Rate: On every purchase that occurs over the platform, Amazon takes a fixed price.
  • Subscription: Amazon Prime is a membership for customers who want to avail special benefits, for example, free two-day shipping, access to unlimited films and music playlists, unlimited and secure photo storage, and various other perks. This will cost them $119 every year. Today, more than 100 million users have subscribed to prime service and this number is on a rise. 
  • Affiliate: There is additionally a partner program that enables traders to acquire 1-10% of purchase from the link posted on their sites. 

Also Read: How To Raise Funds For Your Mobile App Idea?

What is Amazon’s Business Strategy?

Amazon utilizes the Cash Machine Business strategy. This implies that Amazon works at a tight net revenues and invests a lot in its services, structures, new products, advancements, and experiments for additional expansion. 

Because of this business strategy, Amazon doesn’t have to issue or borrow the stock. Amazon’s Cash Conversion Cycle resembles this: they utilize their own money for reinvesting it into purchasing more products and making bigger innovations and services, which thusly drives their user base and an explosive extension for more and more categories and industries. 

Now that you know all about how amazon works and what value it provides to its customers, let’s check out what are the must-have features of an app like Amazon.

10 Must-Have Features of a Marketplace App like Amazon

Before investing in developing an app like Amazon, let us look at the essential features of such an application to achieve maximum conversions, and to provide a seamless shopping experience to users: 

app like amazon

1. Easy Registration Process

Despite the fact that it sounds very simple to accomplish, only a few out of many eCommerce applications know how to design their registration process. A poor or complex registration process is the main reason behind the increased churn rate of an application and hence it should be put into consideration while building an eCommerce app.

These days, because of social media apps, you no longer have to compel your application users to fill in pages after pages of personal information just to register in your app. All they need to do is simply enter the application with a couple of clicks using Facebook, Gmail or some other social media platform. 

The idea is to make a marketplace application where the entire registration process is as easy as possible so that users don’t need to wait and show persistence for getting into your Amazon-like application. 

2. Easy Product Navigation

No matter what number of products you are selling on your online store, your navigation should make it simple for your users to explore each one of those products and discover one to buy. 

3. Multiple Payment Options

With different users come different payment choices. While it is enticing to just have a credit/debit card alternative in your amazon-like app for payments, it is critical to include numerous payment methods in your application to offer your users a range of various payment options so that they can pay using their preferred method. 

So, if you want to develop an Amazon-like app, aside from credit and debit card alternatives, you should also integrate other payment options in your app like Paypal, Paytm or Cash-on-delivery.

4. Push Notification

Push Notifications is the only way to keep your users hooked in the app. It increases your app engagement rate and also gives you a chance to advertise your services. 

The power that comes with helping the users to remember what they are missing, when planned right by applying the right push-notification strategy, can help drive the success of your Amazon-like application. That’s why it is essential to invest in an appropriate push-notification framework that would prevent users from deserting your application. 

5. Real-time Order Tracking

Users of eCommerce apps lack patience. They want to see where their order has arrived and when they will get it. This is the reason why a real-time order tracking feature is crucial for an app like amazon.

Your app users should be able to get real-time information about their product’s whereabouts. They should even get the live updates about the order when the ETA or status changes. 

6. Social Media Integration

Social Media and eCommerce are going hand-in-hand these days.

As a leading marketplace application development company, we would not just suggest you to limit the social-media integration to app registration only. We will suggest you use social media in all your marketing campaigns. You can let your users share their experiences of using your app on social media. These days, eCommerce apps let users share referral codes and coupons on various social media sites for the purpose of promotions. It will give your app a boost and will help you spread a word about your business.

In today’s world, social media hugely impacts the purchasing behavior of customers and this is the reason it is a must-have feature for any Amazon-like app.

7. Live Chat Support

This feature enables users to directly speak with the support team to talk about any inquiry or confusion associated with the product or payment. 

8. Add-to-Cart

As a general rule, eCommerce users are not prepared to buy a product in a split second however wish to save it somewhere for the future. In a situation like this, they desire an add-to-cart alternative wherein they can save the item for future purchasing. 

You can also enable your users to make a wish-list of things that they want to purchase in the near future. Even empower them to add, delete and manage things in their wish-list according to their convenience. 

9. Augmented Reality (AR) View

Because of increasing competition in the eCommerce field, you can not miss even a single essential feature in your app that presents eCommerce apps already have. So, empower your users to see products in their homes before buying them –  using the AR view feature. Users should be able to visualize how any product will look at the specific spot of their home. 

10. Ratings and Reviews

This feature is a must-have feature when you are building a marketplace app like amazon, even if you are simply starting with the domain. The feature doesn’t simply add a component of trust in the credibility of your services but additionally enables the users to make an informed decision while giving you valuable insights on things that you need to work upon. 

Now that you know features that you must integrate in your Amazon-like app, let’s check out how much it will cost you to develop an app like Amazon.

How Much Does it Cost to Build a Marketplace App like Amazon?

These are a few points that determine the cost of developing an eCommerce application.

The Platform – IOS or Android

The choice of platform depends on your business type and targeted audience. You must make this choice very carefully as the selected platform will decide your app users and will also impact your income areas. We all know that Android is having a wider user base, however, we can not neglect the fact that iOS users are said to be the ones having a higher income.

So, we recommend you to build your Amazon-like app for both the platforms so that you don’t miss even a single potential user. If you are hesitating in building for both the platforms in one go – you can start with building an MVP first. It will help you test your idea and will additionally give you the confidence to scale your product for both the platforms.

Features and Functionality

The next factor that will be helpful in finding out the cost to build an application like Amazon is its features and functionalities. It relies upon you what sort of features you need like simple, or advance? Simple & essential features include user login and signup option, checkout process and payment gateway integration. 

If you want simple features in your eCommerce application then the cost will be less for both the platforms – iOS and Android. However, if you plan to integrate advanced features in your app like Chatbots, AR view or product filter, the cost will go higher. 


A wireframe is a rough sketch of an application. It’s a visual design of the application layout. The cost of wireframes relies upon the type of application, for a basic application that has just 2-3 pages the expense of wireframes is under $600 and for complex applications that have multiple pages the expense can go up to $2,000. 

App Design

The designing cost of an app like Amazon will depend on the flexibility, scalability, performance, and versatility. In general, the cost of app designing falls between $5,000 and $30,000

Developer Cost

The development cost of your application relies on the number of developers that will work on your app, app’s size, and features. Depending on various parameters application development cost comes between $1000 and $100,000. 


App maintenance is important because Apple and Android regularly update their systems. To make your application work appropriately after the updates, you have to determine the expense of further maintenance and modifications for your eCommerce application. The app maintenance cost generally falls under $20,000.

So, having every one of these factors in mind, developing a marketplace application like Amazon will cost you somewhere around $20000 to $50000. Now that you know about the eCommerce business model, features and cost analysis, it’s time to make your own app like Amazon. If you require further consultation on building an app or running an eCommerce business, you can talk to our experts here.


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