How Much Does It Cost to Build a Mobile Shopping App?

Having an e-commerce website is imperative for any online retail shop. But once a website is established, many companies also consider developing a mobile app to complement their web presence. The reason is simple: many customers prefer to shop using mobile apps. Just look at your phone; there are obviously numerous mobile apps, among which at least one or several are mobile shopping apps. Mobile e-commerce apps provide a convenient shopping experience on small screens and through touch interactions, so customers often prefer them over websites optimized for mobile devices.

While developing an e-commerce mobile app may require a substantial investment, the potential return on investment can be equally significant. It opens up additional sales and marketing channels, helps better engage with audiences, creates more sales opportunities, and drives business growth. But how much will developing such a shopping app actually cost?

Let's sort it out, starting with what a mobile shopping app is, how it differs and what advantages it offers compared to mobile-optimized websites, and finally, how much it will cost to develop it.

What Is a Mobile Shopping App?

A mobile shopping app is a software app that users use to search for and purchase products or services from a seller or service provider, directly from their smartphone or tablet. In a world of increasingly mobile-first commerce, these apps have become essential tools for users and businesses alike. 

What Are Some Examples Of the Most Popular Shopping Apps?

Chinese online store Temu has become the most downloaded shopping app in the world in 2023. The app has been downloaded nearly 338 million times from the Apple App and Google Play Store. Temu's main competitor, Shein, was the second most popular shopping app that year, with approximately 262 million downloads.

Leading shopping apps worldwide in 2023, by number of downloads

What Are the Benefits Of Mobile Apps Over Mobile-optimized Websites?

• Better User Experience: Mobile shopping apps are usually faster and more user-friendly. It can be a deciding factor for customers who want to make a quick purchase. They can provide smoother animations, faster loading times, and a more responsive experience, increasing customer engagement, retention, and satisfaction.

• Advanced Functionality: Mobile apps can access hardware components such as cameras, GPS, accelerometers, and sensors, providing advanced features such as for instance, augmented reality or real-time navigation.

• Offline Access and Data Storage: Mobile apps can save data locally on the device, so users can access content and complete tasks even when offline or with limited connectivity.

• Improved Security and Privacy: Mobile apps can use stronger security measures to protect user data and ensure privacy. Companies can reduce security risks by using platform-specific security features and encryption methods. In addition, they can offer more control over permissions and access to sensitive device features, increasing security and privacy.

• Brand Differentiation and Loyalty: A well-designed and functional app can provide a unique and personalized experience that strengthens the connection between a company and its users. Push notifications, in-app messaging, and personalized content delivery further engage users and encourage repeat visits. Additionally, many mobile shopping apps offer exclusive deals and discounts not available on the retailer's website.

What factors influence the cost of e-commerce mobile app development?

The location of the development team and method of development: Among the most significant factors affecting the cost of an app development is how you will develop an app and who will do it. For instance, you can try developing an app yourself or with freelancers' help by using any of the available no-code app builders that allow the development of mobile apps that can be deployed on app stores. We have analyzed some of the best no-code app builders in one of our previous articles, which is available here. The cost will be associated with using these app builders mentioned in our article, as well as costs offered by freelancers if you opt to attract their help. This option is fast and affordable for startups and small companies. However, it has limited customization and features, and the user experience may suffer, revealing that the app is builder-made. 

To increase your chances of getting a successful app, you can hire a software development company. In the latter case, the cost of software development will significantly depend on the team you choose and their location. In 2024, the approximate hourly charges for software development across different regions are as follows:

• North America (USA, Canada): $75-$125 per hour

• Western Europe (Poland): $45-$100 per hour

• Eastern Europe (Ukraine): $25-$55 per hour

• Asia (India, China): $20-$60 per hour

• Latin America (Argentina, Brazil): $20-$60 per hour. 

App Design: The success of any shopping app hinges on attracting and retaining users, and intuitive and visually appealing user interface (UI) and user experience (UX) are often deciding factors that make users stay or leave. Creating great designs that users will appreciate requires a significant amount of time. The cost consequently varies depending on the project's complexity and the designer's skill level and may range from $1,500 to $30,000 or even higher. The cost includes the fee a UI/UX designer charges for creating wireframes, UI designs, and overall UX for your e-commerce app.

Development platform: The shopping app can be developed for iOS and Android. The Android platform has more users, but it takes longer, and it is more expensive to develop such apps as they need to be tested on different Android phone models. Choosing to develop for one of these platforms will limit the app's potential users. At the same time developing for both platforms can significantly increase costs. Cross-platform development using frameworks like Flutter and React Native has become a popular solution for creating an app with one code base suitable for both Android and iOS platforms without doubling the costs. Building a very basic e-commerce mobile app for both iOS and Android starts at $8,000.

App Functionality: The functionality of a shopping app directly influences the development cost: the more functions it has, the more advanced they are, the longer and more expensive the development process is. There are must-have features and functionalities indispensable for any e-commerce app, like product or service listings and product or service pages, their search and filter options, checkout, and payment gateway. There are also recommendable features and functionalities like wishlists and saved Items or registration, login, and customer pages. It is also advisable to implement multiple payment gateways so that users can pay with credit or debit cards, Paypal, or other methods. And there are advanced features like personalized recommendations and AI/ML functions that are not that necessary but can make an app more fun and enjoyable. However, it obviously takes more time and costs to develop. It is also important not to overcomplicate the app, as unnecessary functions may distract users. 

It is worth mentioning that, just like with any other app, developing an app is just the beginning of the journey. It's equally important to consider maintenance and updates and not to overlook marketing expenses. The estimated cost of maintaining an e-commerce app is 20-30% of your initial investment. Thus, if the cost of developing an e-commerce application is $50,000, the annual cost of maintaining it will be about $10,000.

What are Shopping app development costs?

Considering the above factors, the price of developing a mobile shopping app can range from $8,000 to $200,000 or even more.

Based on the app's complexity, here are some rough estimates:

• Basic e-commerce app: $10,000 - $50,000. Such apps usually consist of simple functionalities such as product listing, shopping cart, checkout, and payment gateway.

• Moderate e-commerce app: $50,000 - $150,000. Such apps may have more advanced features like product recommendations, AI chatbots for 24/7 customer support, push notifications, product ratings and reviews, and social media integration.

• Complex e-commerce app: $150,000–$500,000+. Such applications may have advanced features like inventory management, multilingual support, real-time analytics, integration with other systems like ERP and CRM, etc.

Here is the breakdown of approximate possible costs based on development phases: 

• App design cost - $1,000 – $30,000+

• App development cost - $5,000 - $150,000+

• Payment gateway integration - $1,000 - $10,000+

• Maintenance and upgrades - $2,000 – $15,000+ annually

• Marketing and promotion cost - depends on the marketing strategy

Bottom Line:

Developing an e-commerce mobile app can require a significant investment - the cost of developing a mobile shopping app is, on average, between $30,000 and $200,000, depending on the app's complexity, features, and all the other factors discussed earlier in this blog. But investing in mobile e-commerce apps can also provide a significant return on investment for a business. With mobile apps, e-commerce businesses get additional sales and marketing channels that help better engage with the audience, create more sales opportunities, and drive business growth.