Mark Spends a Year Figuring Out the Cost to Build an E-Commerce App Like StockX – 9 Key Cost Factors

With a mammoth 28 million monthly visitors and a 2.8 billion market size, StockX has quickly become a dominant force in the e-commerce industry. As a result, many businesses are now looking to create similar apps. For both startups and established brick-and-mortar stores, building an e-commerce platform like StockX offers tremendous growth opportunities. However, creating an app with such complexity requires meticulous planning, specialized expertise, and a clear understanding of the costs involved to deliver a seamless and secure user experience. 

This is exactly what happened to Mark, a retail store owner I recently had the chance to speak with. Mark spent over a year trying to figure out the cost and development process for building an e-commerce app that could compete with the likes of StockX. He tried reaching and researching several sources but faced one roadblock after another. That’s when he decided to get in touch with me to finally gain clarity on how to successfully navigate the process.

I’m Gaurav Khanna, the CEO of APPWRK IT Solutions Pvt. Ltd., and I helped Mark break down the complexities of building an e-commerce app. Through a thorough discussion, we looked at everything from the costs involved to the essential features his app needed to succeed in today’s competitive market. Let’s take a closer look at how I helped Mark figure out the cost to build an e-commerce app like StockX and the nine key cost factors that every business owner should consider. 

Mark: Hi Gourav, I’ve been trying to figure out the cost of building an e-commerce app like StockX for the past year. I know it’s a major investment, but first, can you help me understand what is an e-commerce app?

Gourav: Of course, Mark! An e-commerce app is essentially a mobile platform that enables users to browse, shop, and make purchases directly from their smartphones or tablets. Think of it as an online store but in app form, designed specifically for convenience and personalization. In today’s world, mobile phones are dominating global digital commerce; in fact, according to Statista, smartphones generate around 77% of all online shopping orders. So, creating an app for your e-commerce business isn’t just an option anymore—it’s practically essential if you want to keep up with the demand for mobile-first experiences. Here is a graph that can better show you about the immense growth of mobile e-commerce across the years:

When we look at apps like StockX, they take the concept of e-commerce a step further. StockX isn’t just a storefront; it’s a dynamic marketplace that allows users to buy and sell items through live bidding or at set prices, making it especially appealing in niche markets like sneakers, collectables, and luxury goods. This type of app includes features such as real-time price tracking, bidding functionality, and secure payment processing, adding an extra layer of complexity compared to a standard e-commerce app.

Mark: Thanks, Gourav! That’s really helpful. But I’m also wondering—are there other specific categories or different types of e-commerce app development?

Gourav: Absolutely, Mark! When it comes to developing e-commerce apps, there are multiple types and approaches, each with unique features, benefits, and cost implications. Let me break it down for you:

• Native E-commerce Apps: These apps are built specifically for one platform, either iOS or Android, using languages like Swift or Kotlin. Native apps offer excellent performance and user experience but tend to be more costly, especially if you need an app for both platforms.

• Cross-Platform Apps: With cross-platform development, you can create a single app that works on both iOS and Android. Using frameworks like Flutter or React Native, these apps save on development costs and time but may sacrifice some platform-specific optimizations.

• Web-Based E-commerce Apps: These are essentially mobile websites designed to function as apps. Users can access them through a browser without a download. Web-based apps are cost-effective but may lack the high performance and advanced features of native apps.

• Hybrid Apps: Hybrid apps combine elements of native and web apps. They’re built using web technologies (HTML, CSS, JavaScript) but run within a native container, allowing them to access certain device features. Hybrid apps are budget-friendly but may not deliver the same user experience as fully native apps.

• Headless E-commerce Apps: A headless app separates the front end and back end, allowing you to customize the user experience without altering the back-end functionality. This approach is popular for businesses that want more control and flexibility over user interactions but can be a bit pricier due to the extra customization.

• B2B and B2C Apps: As I mentioned, B2B (Business-to-Business) and B2C (Business-to-Consumer) apps cater to different audiences and have unique requirements. B2B apps often include features like bulk ordering and account management, while B2C apps are more customer-focused, with features like personalized recommendations and a user-friendly interface.

• Marketplace Apps: Marketplace apps are designed to connect buyers and sellers on a single platform, much like StockX. These apps typically include complex features like product listings, real-time pricing, bidding options, and secure payment integrations, which can drive up development costs.

• Subscription-Based Apps: Subscription-based e-commerce apps charge users a recurring fee for access to products or services. These apps often require secure payment processing and subscription management features and are a great way to generate consistent revenue.

• Custom E-commerce Apps: Finally, custom e-commerce apps are built from scratch, and tailored to the specific needs of a business. They can incorporate unique features and branding elements that set the app apart. Custom apps offer flexibility and scalability, though they require a larger investment upfront.

The choice of app type has a direct impact on the cost to build an e-commerce app. For instance, building a native app offers top performance but is more expensive, while a cross-platform app is more cost-effective but may not have the same level of polish. By choosing the right type based on your budget, audience, and goals, you can create an app that aligns with your business needs without overspending.”

Mark: Okay, that’s interesting! But I’m also curious, what are some of the key advantages of building an e-commerce app like StockX? I know there must be some major benefits beyond just selling products. Could you walk me through those?

Gourav: Great question. Did you know that a recent survey revealed that 91% make online purchases using their smartphones? This means that without an app, your e-commerce business might miss out on a huge number of potential customers. Apps like StockX not only allow consumers to shop with just a few clicks but also open the doors to a wider and vast range of goods and products across the globe. While e-commerce apps propose an abundance of benefits to consumers, they deliver even greater rewards to business owners. From better conversions to enhanced maintenance of consumer relationships, here are some of the advantages of making an e-commerce app like StockX:

• Better Conversion and Retention Rates:

An e-commerce mobile app is far easier to navigate when compared to web applications. Within a few clicks, people are able to make their desired purchase. It is because of this ease of use, around 70% of consumers prefer shopping through these platforms to websites. E-commerce apps also propose a higher user retention rate. When a user downloads your mobile app, they are constantly exposed to the visibility of your app through the app logo or notifications about sales and offers. This will keep them engaged and retain them for the long haul. 

• Drives Deeper Customer Loyalty:

Giving a personal touch to your user experiences has become indispensable in today’s world. Consumers prefer to shop with apps that remember them and their past preferences. By presenting your users with choices that suit their liking, they are more likely to make a desirable move. Through leveraging analytics and data, you can also prompt your users with customer-specific notifications and offers, leading to an increase in loyal customers and repurchases. 

• Keeps Marketing Costs from Skyrocketing:

E-commerce apps drastically help keep your marketing and brand awareness costs down. Through downloads and notifications, your users will be constantly reminded about the presence of your app which naturally eliminates the need for huge brand awareness campaigns. Notifications also inform your users about ongoing sales and help in trimming your expenses on advertisements and marketing. 

• Gain Better Consumer Insights:

When compared to replying on cookies, mobile apps offer better and more in-depth insights about your consumer behaviour. Through various tools like consent management platforms and customer relationship management systems, an e-commerce app can enrich you with a clearer picture of the likes and dislikes, purchasing patterns, common consumer habits and the geographical location of your users. 

• Increase in Cart Checkout Rates:

Businesses like StockX are usually confronted with a common problem of cart abandonment. In fact, a recent study by Statista revealed that only around 2% of online visits are converted. Through e-commerce apps, the rate of cart abandonment can be drastically reduced by cutting down the steps to checkout and streamlining the purchasing process by saving past preferences and auto-filling whenever possible.  

Mark: That’s definitely a game-changer! Now that we’ve covered the advantages, I’m wondering—what factors actually affect the cost to build an e-commerce app like StockX? What should I be keeping in mind when it comes to budgeting for something like this?

Gourav: Great question, Mark! There are several key factors that can directly influence the development cost of an e-commerce app like StockX. Let me break them down for you:

1. App Compatibility Across Platforms

If you want your app to work on both Android and iOS, you’ll need to develop it for both platforms, which adds to the cost. Some businesses start with just one platform to save costs but later expand. Developing for both from the get-go can save time in the long run but increases the initial investment.

2. Integrating Third-Party APIs

Apps like StockX rely on third-party services for functionalities like payment gateways, shipping, customer service, and even personalized recommendations. The complexity and number of integrations you need will impact your budget, especially if you’re using custom APIs or high-end integrations for a smoother user experience.

3. Custom Design & Branding

The design of your app is not just about making it pretty; it’s also about representing your brand. StockX’s unique branding, with its colour scheme, layout, and user experience, requires specialized design work. A custom-designed, on-brand app means higher design and development costs compared to using templates.

4. App Functionality & Features

The more features you want to include—like personalized recommendations, wishlists, advanced search filters, or real-time notifications—the higher the cost. Adding unique, complex functionalities like StockX’s marketplace features (e.g., live bidding) will require more development time and expertise.

5. Payment Gateway Integration

You’ll need a secure, reliable payment gateway to handle transactions smoothly. The complexity of integrating various payment options like credit cards, PayPal, or mobile payment systems like Apple Pay or Google Pay can affect the cost to build an e-commerce app, especially if you need to support multi-currency transactions for international customers.

6. Security & Data Protection

Security is crucial, particularly with e-commerce apps that handle sensitive customer data. Implementing strong security protocols like encryption, multi-factor authentication, and GDPR compliance will add to the overall cost. The more secure the system, the more time and resources required for development.

7. Backend Development

The backend infrastructure, where all the data is stored and processed, needs to be robust and scalable. If your app expects high traffic or requires real-time updates (like StockX’s live auction system), the backend development cost will be higher. You’ll need to invest in powerful servers, cloud solutions, and APIs to ensure everything runs smoothly.

8. Ongoing Maintenance & Updates

Developing the app isn’t a one-time thing. Ongoing maintenance, bug fixes, and updates are essential to keep the app running smoothly and stay competitive in the market. Over time, adding new features and keeping the app optimized for new devices and operating system versions adds recurring costs.

9. User Experience (UX) & Testing

The time spent on testing, ensuring that the app is easy to navigate, and making sure all features work seamlessly is another important factor. User experience is everything in e-commerce, and creating a flawless app that customers love to use takes time and thorough testing to avoid glitches and improve usability.

All these factors combined can impact the final cost to develop an e-commerce app like StockX. The complexity of your app, the technology stack you choose, and the quality of design and development all contribute to the total cost. But, by understanding these factors early on, you’ll be better equipped to manage your budget without any surprises down the road

Mark: So, Gourav, I get that e-commerce apps offer a ton of benefits, but I’m still trying to wrap my head around how to avoid some of the common pitfalls. For instance, what are the main risks and challenges that I should be prepared for when developing an app like StockX?

Gourav: Well, building an e-commerce app like StockX comes with its share of challenges. One major risk is the technical complexity of the platform itself. StockX isn’t just a simple store; it’s a marketplace with real-time features, auctions, secure payment integrations, and user-generated content. Handling such complexity requires a skilled development team and can lead to higher costs if things go wrong.

Another risk is security—e-commerce apps are prime targets for hackers. You’ll need to ensure robust data protection, especially because you’re dealing with payment information and user data. If your security isn’t tight, you could face data breaches, which could seriously damage your reputation.

Another challenge often overlooked is maintenance and scalability. Once your app is live, it’s not just about ensuring it runs but continuously improving it as new challenges arise. For example, as your user base grows, you’ll need to ensure the app scales appropriately to handle increased traffic without compromising speed or user experience. Regular updates are necessary to fix bugs, introduce new features, and keep the app competitive. So, while developing the app is the initial hurdle, ensuring it remains robust and user-friendly over time is just as important.

Mark: Wow, that’s a lot to consider. Now that I have a better understanding of the risks, let’s talk about monetizing an app like StockX. How does it actually make money?

Gourav: StockX primarily makes money by charging a transaction fee on each sale. When a user buys or sells a product, StockX takes a percentage as a commission. It also makes money from authentication fees—since it authenticates the products before they’re sold, it charges sellers for this service. Additionally, StockX could make money through advertising, both on the app and through partnerships with brands. Over time, there might even be opportunities for premium features or subscriptions, where users could pay for added benefits, like early access to exclusive products.

Mark: That makes sense! I know you’ve mentioned that building an app like StockX can require quite a budget as it includes complex features, but I’m still trying to figure out how much it could really cost to build an e-commerce app of this calibre. Do you have a ballpark figure?

Gourav: It really depends on several factors, Mark, but on average, the cost to build an e-commerce app could be anywhere from $30,000 to $200,000 to develop a high-quality e-commerce app like StockX. The cost varies based on things like the number of platforms you want to support (iOS, Android), the complexity of features (live auctions, payment integration), and whether you’re hiring a development team in-house or outsourcing. Keep in mind that maintenance and updates will be additional costs once the app is launched. It’s not just about the initial build, but ongoing investments to ensure it stays competitive and secure.

Mark: Now, what if someone is working with a tighter budget? How can they develop an e-commerce app like StockX on a budget?

Gourav: There are definitely ways to cut down on the cost to build an e-commerce application, Mark. For one, starting small is a great strategy. Instead of building every feature right out of the gate, focus on the core functionality that makes your app unique. Start with a minimum viable product (MVP)—something that’s simple but functional. You can always add more features later on once you’ve generated revenue.

Another cost-saving measure is to use existing platforms or frameworks for app development. There are pre-built solutions that can help you create an app faster and cheaper without sacrificing too much in terms of quality. Additionally, consider outsourcing to regions with lower development costs without compromising on quality. And, don’t forget to plan for future scalability, so that when your app does grow, you don’t face huge expenses for upgrades.

Mark: Those are some great tips! Are there other ways to lower the cost to build an e-commerce app like StockX while maintaining quality?

Gourav: Absolutely, Mark. Outtsourcing development to regions with lower developer costs can significantly cut down the cost to build and e-commerce app. There are highly skilled developers in places like Eastern Europe, South Asia, and Latin America, where development rates are significantly lower than in North America or Western Europe. By hiring remote developers or a dedicated development team from these regions, you can get quality work done at a fraction of the price. 

And while it might seem counterintuitive, don’t forget about scalability. You might be working on a tight budget now, but planning for growth from the beginning is important. Choosing scalable solutions like cloud-based servers or using a modular app design can help you avoid expensive upgrades down the line. It’s also important to prioritize features that will have the most impact on your business—things like a smooth checkout process, secure payment options, and an intuitive user interface are more important than flashy add-ons that users may not even need.

Mark: Gourav, now I understand all about the cost to build an e-commerce app like StockX, but how long does it actually for e-commerce mobile app development? I’ve been hearing wildly different estimates.

Gourav: Building an e-commerce app like StockX typically takes between 4 months to over 12 months, depending on the complexity and features you’re aiming for. The process starts with planning and discovery to define the app’s scope and features. Next is design for UX/UI, followed by development, where front-end and back-end coding bring the app to life. After development, we move into testing and quality assurance to ensure everything works smoothly. Finally, there’s the launch phase, but it doesn’t end there—ongoing maintenance and updates are crucial to keep the app competitive. If you prioritize a minimum viable product (MVP), you could shorten the timeframe to around 4-6 months.

Mark: Okay, got it! Also Gourav, I also keep seeing all this talk about new trends in e-commerce apps. What are the big trends right now, and how do they affect the way these apps are developed?

Gourav: Great question, Mark! E-commerce app development is advancing fast, with a lot of focus on enhancing user experience and using cutting-edge technologies. AI-driven personalization is at the forefront, enabling apps to recommend products and deliver customer service based on individual preferences. Voice commerce is also on the rise, as many users expect voice-enabled shopping for added convenience. 

Augmented Reality (AR) is transforming the space by allowing users to virtually try on clothes or see how products fit in their space, making shopping more engaging. We’re also seeing a shift toward subscription-based models and sustainable e-commerce options, which resonate with customers looking for recurring deliveries or eco-friendly practices. And, of course, social commerce is huge—users now want to shop directly through their favourite social media apps, so integrating social features is becoming essential.

Mark: That’s really helpful, Gourav! With so many trends and features that I can integrate, can you give me a clear idea of what are the e-commerce app features I should include and how to successfully grow my e-commerce application?

Gourav: To successfully grow an e-commerce app, it’s important to focus on a combination of features that enhance user experience and drive engagement. Start with easy navigation and a simple, clean interface so users can quickly find what they need. Include secure and diverse payment options, along with order tracking to keep customers informed. For engagement, consider features like push notifications for promotions and restocks, as well as customer reviews and ratings for building trust. Also don’t forget social sharing options to let users spread the word. By continuously adding and improving these features, your app can attract and retain users, helping it grow successfully in a competitive market.

Mark: Now that I have a clear picture of everything needed for the cost to build an e-commerce app like StockX, from understanding the key factors to knowing the risks, challenges and timeframe, I’m curious about your company and how they can help in developing an e-commerce app like StockX.

Gourav: My company’s name is APPWRK IT Solutions and we are a leading app development and AI-driven digital transformation company specializing in developing custom, scalable apps. With our AI-driven approach and cutting-edge technology, we can help streamline the development process, ensuring that the app is both feature-rich and cost-effective. Our team works closely with clients to understand their needs and create apps that are intuitive, user-friendly, and scalable for future growth. Plus, we can guide you through every stage, from concept and design to development and launch, ensuring your app is a success in the competitive e-commerce space.