Marketplace app development cost - How much does a marketplace REALLY cost? (hidden fees inside!)

Published on March 8, 2025 by Rasmus.

Thinking about launching a marketplace? The costs can vary widely, and there are a lot of hidden fees that most marketplace founders don't consider.

In this post (and video), I'll explore the typical costs of marketplace development and compare different approaches to building a marketplace platform, including their advantages, disadvantages, and associated costs.

The three main ways to build a marketplace

Alright, let's dive into the three main paths you can take to build your marketplace. Each has its advantages and disadvantages (and price tag) - let's break it down.

• Hiring developers (the slow but stil custom route): This is like building a custom Ferrari - it's going to be exactly what you want, but it'll cost you! You're looking at anywhere from $10K to $150K+ to get started. The good news? You get complete control over every feature as long as you can explain the developer(s) what you want. The bad news? You'll need deep pockets and patience. Plus, you'll need to keep developers on a retainer for updates and fixes.
• Using no-code tools (the quick & easy path - but not that customizable): Think of this like renting a car - it's ready to go, but you don't own it. Tools like Sharetribe and Bubble will set you back $139-$369 per month, plus they take a slice of every transaction. It's, however, fast to get started, but you're pretty much stuck with what they offer. And not everything will be customizable. You are limited within their platform.
• Speed Build Marketplace (the spot in between): This is kind of like buying a fully loaded Tesla - you get all the cool features without the custom Ferrari price tag! For a one-time payment of $199, you get full control over your marketplace with no monthly fees or transaction costs. You'll need to be a bit tech-savvy (AI tools like ChatGPT will get you very far), but you'll save thousands in the long run. Plus, you actually own your platform.

The choice really depends on your situation. Got a big budget and need everything custom? Go with option 1. Want to test the waters quickly and your a non-technical? Option 2 might be your best option. Looking for the best bang for your buck with full control? Then option 3 is probably your winner.

Cost breakdown over time

While Sharetribe and hiring developers might seem appealing at first, they get significantly more expensive over time. Here's how the costs add up over two years:

• Hiring developers: $10K - $150K+ upfront + $3K+ per year in maintenance (minimum!).
• Sharetribe Lite plan: $1,668 per year + transaction fees (easily $3K+ over two years).
• Sharetribe Extend plan: $4,428 per year, exceeding $9K over two years.
• Speed Build Marketplace: $199 one-time + ~$1,399 over two years (hosting & small maintenance costs).

Hidden costs you need to know

• Transaction fees: Platforms like Sharetribe take a percentage of every transaction (usually 2-5%). This means as your marketplace grows and processes more transactions, you'll be paying significantly more in fees. For example, with $10,000 in monthly transactions, you could be paying $200-500 just in transaction fees.
• Scaling costs: As your marketplace grows, infrastructure costs can increase dramatically. Cloud hosting can jump from $50/month to $500+/month with high traffic. Storage costs for user uploads and media can add another $100-200/month. CDN and bandwidth costs typically increase by 2-3x when expanding to multiple regions.
• Customization limitations: No-code tools often hit walls with custom features. Adding custom search filters, chat systems, or unique booking flows usually requires expensive workarounds or complete rebuilds. Some marketplaces end up spending $5,000-15,000 just to add features that weren't supported out-of-the-box.
• Ongoing support: Developer support isn't just about hourly rates ($50-150/hr) - it's also about frequency. Regular maintenance, security updates, and bug fixes typically need 5-10 hours per month. Major feature updates or platform upgrades can easily require 20-40 hours of developer time, costing $1,000-6,000 per significant change.
• Integration costs: Connecting essential services like payment processors, email systems, or analytics tools often requires paid subscriptions ($20-100/month each) plus integration time. Some specialized integrations might need custom development, adding $1,000-3,000 in one-time costs.

Which option is best for you?

Let's break down the best option based on your needs:

• For funded startups ($50K+ budget): Custom development with a dedicated team gives you full control over features, scalability, and your product roadmap. This is ideal if you have unique requirements or need enterprise-grade infrastructure.
• For quick validation for no-code founders (under $1K): No-code platforms like Sharetribe can help you test your marketplace idea. Just be aware of increasing costs as you scale and potential feature limitations.
• For technical founders ($1K-5K budget): Speed Build Marketplace offers the sweet spot - rapid development, full code access, and affordable scaling. You get a production-ready codebase that you can customize without the enterprise price tag.

Still unsure? Try the interactive decision tool below to get a personalized recommendation based on your specific needs: