Construction Guide for Online Auction App: Advantages, Characteristics, Expenses
Are you nostalgic for the thrill of haggling during street shopping? Imagine bringing a modern, digital twist to that experience. Websites and applications like eBay, BidSpotter, and Auction.com, among others, have made it convenient for users to bid across various categories to secure goods at affordable prices. This success points to the potential of developing an online auction application in both B2C and B2B sectors.
With the substantial benefits that online auction spaces offer, it appears to be a lucrative segment for aspiring entrepreneurs. Here are the advantages of investing in an online auction app:
- Global Reach - Online platforms make it possible for businesses to reach a diverse and expansive audience.
- Lengthy Bidding Windows - Online bidding can remain active for an extended period, boosting the chances of sellers clicking with potential bidders.
- Elimination of Logistical Costs - Since products are displayed digitally, there is no need for storage in warehouses or navigating complex supply chains.
Given the unrelenting growth in this sector and the numerous benefits of online auction apps, many entrepreneurs worldwide are exploring real-time auction app development as their next venture. The natural question that arises in this context is the cost of developing an online auction application. Let's break it down.
The cost range for non-complex online auction app development falls between $30,000 and $150,000. These figures do not account for advanced tech integrations such as blockchain smart contracts or artificial intelligence services.
| Scope of Work | Dedicated Hours ||--------------------|--------------------|| Project Understanding and Environment Setup | 60 hours || UI/UX Design | 300 hours || Frontend Development (per platform) | 550 hours || Backend Development | 253 hours || Quality Assurance (QA) Testing | 146 hours || Project Management | 240 hours || Total Hours (per platform) | 1549 hours |
Before discussing the cost, it's essential to understand the factors that influence developers' efforts in creating an online auction app.
Project understanding and environment setup
The features of an online auction app play a pivotal role in both cost and impact. To illustrate this, let's consider some Minimum Viable Product (MVP) level features:
60 hours
Sellers-Focused Features
Listing Creation
UI/UX
Online auction apps enable sellers to create product listings by entering details like:
300 hours
- Product Name
- Description
- Category
- Images
- Auction Format
- Duration
- Preferred Currency
- Product Quantity
- Payment Options
- Shipping Details
- Reserve Price
Dashboard
Frontend development
Sellers require insights into how their listed products are performing. Auction bidding apps make this information accessible via a detailed dashboard, where they can monitor product sales volume, income, ratings, traffic, and make informed decisions.
550 hours (per platform)
Buyers-Focused Features
Product Search
Backend development
Online auction apps allow users to search for products using various filters like item condition, category, price, seller rating, buying format, and shipping options.
253 hours
Product Page
Here, buyers can inspect product details like images, name, description, condition, price, bidding information, shipping and delivery details, accepted payment modes, seller information, and returns policy. This information instills confidence in buyers about their prospective purchases.
QA testing
Bidding Process
146 hours
To begin, we should outline bidding models that cater to both buyers and sellers:
- Buy-it-now - A fixed price with a bid price ensures the product is sold to the highest bidder.
- Proxy Bidding - This model relies on software to bid for lots based on the maximum cost set by the user.
- Reserve Price - If the bid exceeds the price set by the seller, the lot is sold to the highest bidder, or if the price is equal to the seller's price, the lot is sold.
Project management
Regardless of the chosen model, once the auction concludes, the product is sold and dispatched to the highest bidder.
240 hours
Shopping Cart
By developing an online auction app, you are essentially building an e-commerce app with added features. The shopping cart functionality allows buyers to select multiple items from multiple stores and complete their purchases in a single transaction. Key features include changing product quantity and managing in-cart items.
Total hours
Payments Integration
1549 hours for one platform
Payment modules in online auction apps work in two ways:
- Sellers specify their preferred payment options in listings.
- Buyers complete their transactions using their preferred payment modes.
Optional settings may include offering pre-defined payment modules for both sellers and buyers to choose from. Depending on this choice, you have two possible integration strategies – off-site integration redirecting users to a payment website or in-app API integration.
Ratings and Reviews
This feature generates credibility in the system by enabling buyers and sellers to leave ratings and reviews based on their experiences. Sellers can improve their businesses, while buyers can make informed decisions about vendors.
Domain
In-app Chat
$300-$600 per year for exclusive domain
The in-app chat function offers a simple way for buyers to communicate with sellers when they have questions or need additional information about products or the bidding process.
Admin-Focused Features
Host
Users Management
$60 per year, if shared $1200 per year, if individual
This feature grants admin the authority to modify, edit, or delete users' profiles when necessary.
Bidding Management
Design
Admins should be able to edit or delete auction bids if they violate regulations or rules.
$6,000-$15,000
Content Management System
The online auction app's admin can manage and edit/delete listing content to ensure they comply with the platform's rules.
Development
Progress Tracking
$50,000 to $100,000
Admins need to track the platform's development regarding traffic, transactions, and product sales performance.
In addition to these core features, the cost increases if you intend to launch your app on multiple platforms (typically, mobile apps and websites). Here's a breakdown:
Content
| Factors | Price Range ||------------|----------------|| Domain | $300 - $600 per year (for exclusive domains) || Host | $60 per year (for shared), $1,200 per year (for individual) || Design | $6,000 - $15,000 || Development | $50,000 - $100,000 || Content | $500 - $1,000 per month || Add-ons | $120 - $180 per year |
$500-$1000 per month
Beyond features and development cost, the design is critical to creating a seamless user experience, attracting users, and boosting app adoption. Our team takes a user-centric approach to design, putting ourselves in users' shoes and running thorough competitor analyses to identify areas for improvement. This meticulous design analysis contributes to the cost to build an online auction app.
Integrating advanced technologies like AI and blockchain can further enhance the auction ecosystem:
Add-ons
- AI in Auctions - Automate bid management by notifying sellers when they receive the highest bid and automatically closing the auction within the specified time.
- Blockchain in Auctions - Implement smart contracts to define item ownership and bring the entire auction and withdrawal process onto the blockchain, ensuring refunds for unsuccessful bidders and prompt delivery for winners.
$120-$180 per year
Consider the pricing framework for building an auction app, the design process, and the right technology integration to determine the costs of developing an online auction app resembling Emirates Auction or similar platforms. The process encompasses brainstorming, app design, features, and tech addition, testing, and launch.
How to Build an Online Auction App?
Creating an online auction platform is a multi-stage process:
Choose the Auction Type
Selecting the right auction type can set your application up for success from the onset. Here are some auction types to consider:
- English Auction - Prices start at a fixed reserve price and increase in an ascending order, with the product being sold to the highest bidder.
- Dutch Auction - Prices start high and gradually decrease as bidding progresses. Winners pay proportionally more for their bids.
- Vickrey Auction - Winners receive the item at the second-highest bid price. For example, if bids are at $10 and $30, the winner pays only $10.
- Double Auction - Both buyers and sellers submit prices to an auctioneer, who then matches the best offers. Sellers with lower asking prices can sell, while buyers with higher bids can buy at the price set.
- Sealed Bid Auction - Bidders only submit one sealed bid, and the auction closes with the winning bid selected based on rules.
- Penny Auction - Prices start at a minimum amount, and bidders can bid in defined increments with the auction ending when no more bids are placed.
UI/UX Design
After settling on an auction type, designers craft user journeys centered around the app features. They design intuitively to minimize learning and optimize the user experience.
Backend and Frontend Development
Once the design system is ready, developers work on the backend (server setup, APIs) and frontend (user interface, app functionality) to build an engaging, intuitive application.
App Testing
Following development, the app undergoes manual and automated testing for efficiency checks, security assessments, and usability analyses. We employ a rigorous user acceptance testing method, involving real users who provide feedback on the app.
App Launch
After testing and app store compliance checks, the app is launched on both mobile and web platforms and subsequently monitored for user feedback and adoption rates.
Appinventiv - Your Reliable Partner
At Appinventiv, we specialize in creating online auction platforms tailored to specific target audiences and market demands. Our extensive market research and innovation deliver a solution that caters to entrepreneurs and government clients alike. Let us help you build an online auction app that adapts to the rapid pace of today's digital world. Get in touch today.
FAQs
- How much does it cost to build a custom auction platform?
Costs for building a custom auction platform typically range from $30,000 to $150,000, depending on complexity, features, design requirements, ongoing maintenance, and additional integrations like AI or advanced functionalities.
- How long does it take to build a custom auction platform?
Developing a custom auction platform can take three to six months for a basic platform and 12+ months for a more complex solution. This period includes gathering requirements, design, development, testing, and deployment. Proper planning, well-defined scope, and prompt stakeholder feedback can streamline the development process and ensure a timely launch.
- What are the advantages of building an auction platform for businesses?
An auction platform offers several advantages to businesses:
- Increased Revenue - Facilitates competitive bidding, which drives higher sales prices and boosts overall profits.
- Enhanced User Engagement - Provides an interactive, dynamic environment that attracts and retains active buyers and sellers.
- Efficient Inventory Management - Automates the auction process, streamlining bid tracking and sales operations for improved efficiency.
- Valuable Data Insights - Collects detailed user and transaction data, helping businesses refine their marketing strategies and operational decisions.
- Scalability - A custom solution can easily adapt and expand to meet evolving market demands and new business opportunities.
The potential of online auction apps in both B2C and B2B sectors is vast, as they can offer multiple benefits such as a global reach, lengthy bidding windows, and elimination of logistical costs. This has led aspiring entrepreneurs to explore the development of real-time auction apps as their next venture.
The cost of an online auction app development falls between $30,000 and $150,000, considering non-complex constructions. However, the price increases for advanced tech integrations like blockchain smart contracts or artificial intelligence services. The development process includes project understanding and environment setup, UI/UX design, frontend and backend development, quality assurance testing, project management, and payments integration.
