How Much Does It Cost to Build a Marketplace App Like Gumtree?

nitinsoni May 7, 2024
cost to develop an app like Gumtree

In a world where virtual storefronts are becoming the new norm, online marketplace apps like Gumtree have become the go-to destination for users keen to buy and sell goods or services. Gumtree, the leading online classifieds giant, provides a platform to connect buyers and sellers from diverse regions and with diverse needs. In fact, Gumtree’s unique value proposition lies in connecting people around a shared life stage, pastime, passion, or interest.

Whether it is new parents exchanging baby gear, an individual probing for a resident, a homemaker searching for furnishing items, or bike enthusiasts sourcing their next ride, Gumtree caters to a diverse array of users, resonating deeply with their unique requirements. Understanding and replicating this unique value proposition is key to emulating Gumtree’s success.

The value of the Gumtree service is undeniable, attracting a staggering amount of public attention as this classified giant received 33.75 million visits in March 2024, with an average session duration of 14:32, up by 1.79% from February traffic.

Gumtree Traffic and Visitor Engagement

This success story presents a golden opportunity for those considering developing their own app in a similar vein. However, the pressing question remains – what does it truly take to build a similar app, and most importantly, how much does it cost to develop an app like Gumtree?

On average, the cost to develop a marketplace app like Gumtree ranges from $30,000 to $300,000. There are various crucial components (details later) that can increase or decrease this estimated cost.

In this blog, we will help you discover every essential aspect that contributes to Gumtree app development cost. But first, let’s explore what makes the app so successful that businesses of all sizes, including aspiring entrepreneurs and established enterprises, are interested in cloning the Gumtree platform.

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Understanding the Success of Gumtree

Gumtree, an eBay-owned community website, hosts a variety of classified ads tailored to the interests of its members. The classification of Gumtree ads is either paid or free, depending on the nature of the product being advertised. Whether it is a car, a job, a sofa, a new flat, a stereo, a bike, or anything else, Gumtree makes you promote whatever you want and secure the best deals.

One reason Gumtree became such a colossal hit is that it has successfully connected buyers and sellers from all across the world for years. From its humble origins on the bustling streets of London in 2000 to its expansive global presence spanning Hong Kong, South Africa, New Zealand, Australia, Canada, France, Poland, and, of course, the UK, the impact of this platform resonates far and wide.

Gumtree Website Traffic by Country

Gumtree is a tremendous source for businesses, especially among small and medium-sized enterprises, making it easier for them to reach their target audience.

What’s more? The app supports a variety of payment methods, including mobile wallets, debit cards, credit cards, UPI, and bank transfers. However, what truly sets Gumtree apart is its different revenue models and extensive features list (details later).

Factors Affecting the Cost to Develop an App Like Gumtree

Several factors influence the cost to develop a marketplace app like Gumtree. Understanding these factors is crucial for evaluating the precise estimate for marketplace app development. Here are some key considerations:

Gumtree App Development Cost: Considerable Factors

Features and Functionality

The complexity and list of features integrated into the app play a major role in determining the Gumtree-like app development cost. Features such as user profiles, search filters, AI chatbots, payment gateways, geolocation, push notifications, etc., all contribute to the cost to build an app similar to Gumtree.

App ComplexityAverage TimelineAverage Cost
Simple app with basic features3-4 months$30,000-$50,000
Medium complex app with moderate features4-9 months$50,000-$120,000
Highly complex app with advanced features9 months to 1 year or more$120,000-$300,000 or more

UI/UX Design

A well-designed and intuitive interface plays a crucial role in enhancing user engagement and satisfaction. Crafting an engaging and visually appealing UI/UX design requires professional expertise and extra development efforts that can increase development costs but also lead to better user adoption and retention.

UI/UX of Gumtree app

App Infrastructure

The robustness and scalability of the backend infrastructure are essential for supporting the app’s functionality and accommodating future growth. Thus, factors such as server architecture, database management systems, cloud hosting providers (e.g., AWS, Google Cloud, Azure), social media logins, and API integrations not only support app functionality but also influence an app like Gumtree development cost.

Security and Compliance

Implementing security measures such as encryption techniques, multi-factor authentication, etc., is essential for protecting user data and maintaining trust. Also, adhering to regulatory compliance, such as data privacy laws (GDPR, CCPA), accessibility standards (WCAG), payment industry standards (PCI DSS), and app store guidelines, necessitates additional development efforts. Thus, it increases the cost to develop a marketplace app like Gumtree.

App Platform Selection

The choice between developing the app for iOS, Android, or both platforms significantly impacts development costs. Each platform has its own tech stack requirements and design guidelines, which necessitate additional efforts and time, thus increasing marketplace app development costs.

Based on statistics, the Android platform boasts a significantly larger user base, with approximately 3.5 billion users compared to iOS’s 1.3 billion users in the digital race. Correspondingly, Gumtree achieves notable success with over 10 million downloads on the Google Play store, underscoring the platform’s popularity among users.

Total Number of iOS and Android Users in the World

Technology Stack

Using the right tech stack is a critical component that can impact the overall cost to develop an app like Gumtree. The choice of technology stack, including frameworks, programming languages, and tools, plays a substantial role in determining both the development expenses and the project timeline.

Location of App Developers

The geographical location of an eCommerce app development company is a crucial factor in determining the Gumtree-like app development cost. For instance, outsourcing an app development partner from regions like the UK, US, or Australia typically costs you more than those in India, Asia, or Africa.

Here is a brief table to help you gain a better understanding of Gumtree app development cost based on the location of the eCommerce app development company.

Geographical LocationMarketplace App Development Cost
North America$40–250/hr
Western Europe$35–180/hr
South America$25–120/hr
Eastern Europe$25–110/hr
India and Asia$20–80/hr

Updates and Maintenance

Ongoing maintenance, updates, and technical support are essential for keeping the app secure, up-to-date, and compatible with evolving technologies and operating systems. So, even if maintenance is not the actual part of the development process, budgeting for ongoing maintenance is essential to ensure long-term app success.

Now that we know the critical components that contribute to marketplace app development costs, let’s discover the essential features that play a pivotal role in determining the success of a classified advertisement app like Gumtree.

Must Have Features of a Marketplace App like Gumtree

Creating a marketplace app like Gumtree calls for a comprehensive set of features to drive users and gain competitive advantages. Therefore, here we have outlined some notable features you must consider when evaluating the cost to develop an app like Gumtree.

Features to Have in a Marketplace like Gumtree

Profile Registration

The app should enable users to create accounts and sign in securely using email, social media accounts, or phone numbers. Once logged in, users can create profiles to manage their addresses, payment methods, etc.

Listing Management

A marketplace app like Gumtree boasts an extensive range of products spanning various categories, including furniture, electronics, apparel, vehicles, and more. Thus, you must add a product listing feature in the app, enabling users to create, edit, and manage listings for products or services they wish to buy or sell, including adding descriptions, photos, and pricing information.

Product listing and platform functionality of a marketplace app

Messaging System

In the bustling market of classified apps, the messaging system is the currency that fuels connections and transactions. With messaging features such as in-app messaging, multimedia file sharing, and message history, buyers and sellers can engage in real-time conversations, inquire about offerings, negotiate deals, and execute safe transactions.

Push Notifications

The app should send personalized push notifications to alert users about new events, listing updates, price changes, offers, and other relevant messages. It helps enhance user engagement and retention.

Search and Filters

A robust search functionality with filters is one of the most sought features of a marketplace app. It helps users find specific products or services they want based on categories, location, price range, and other criteria.

You may like reading: Intuitive Search Specs that Separate the Best from the Rest

Search and Filter feature in eCommerce mobile apps

User Ratings and Reviews

Integrating reviews and rating features can improve users’ trust and loyalty in your app’s offerings. Thus, you must allow users to leave ratings and reviews for sellers or buyers to build trust and credibility within the community.

Payment Gateway Integration

When building a classified advertisement app like Gumtree, you must integrate secure payment gateways to facilitate transactions within the app. Your app should support multiple payment options such as credit/debit cards, digital wallets, PayPal, and bank transfers, ensuring a seamless checkout experience for all customers.

Wishlist and Saved Searches

Your marketplace’s vast inventory allows users to discover countless products that capture their interest. With a wishlist and saved search feature, users can curate their own personal collections and save the products for later purchase. This allows users to revisit their wishlist items and pick up right where they left off, ensuring a seamless shopping experience.

Edit and remove saved searches

Admin Dashboard

You must provide the administrators with a comprehensive dashboard to oversee listings, manage users, monitor payments, uphold community standards, and resolve disputes effectively. From resolving disputes to analyzing performance metrics, the admin dashboard serves as the nerve center that guides the evolution of your marketplace app.

Advanced Security Measures

Security is the prime concern when building an app like Gumtree. According to Forbes Advisor, the average monetary loss in an eCommerce scam is $101. Thus, you must implement robust security measures such as encryption protocols, authentication methods, and regular security audits to protect user data, prevent fraud, and ensure secure transactions.

Reporting and Moderation

With reporting and moderation features at your disposal, you can allow users to flag suspicious activities, inappropriate content, or violations of community guidelines, enhancing the app’s security and ensuring a safe environment for all.

Social Media Sharing

With around 5.17 billion people active on social media platforms, integrating the social sharing feature has become an essential feature of your marketplace app. This feature allows users to share listings, favorite items, and reviews on social media platforms, expanding your app’s reach and attracting new users.

Also Read: How to Create a Social Media App – An Ultimate Guide

Number of social media users worldwide from 2017 to 2027

Geolocation and Maps

The geolocation and maps feature helps enhance the user experience and improve search accuracy. Whether searching for a desired item or exploring new opportunities, users can rely on GPS technology to search for nearby products or services.

AI Analytics and Insights

It is indeed one of the most essential features of any eCommerce app like Amazon, Costco, Target, Gumtree, or the one you wish to build. Your app must have AI analytics tools to track user behavior, monitor app performance, and gain insights into market trends, helping to refine the user experience and optimize the platform.

AR/VR Try-Ons

The virtual try-on feature revolutionizes the eCommerce experience by enabling users to virtually test products such as furniture, accessories, and electronics before committing to a purchase. This feature provides an immersive and interactive preview of how products will appear and function in real-life scenarios, enabling users to make confident decisions.

For instance, IKEA, the world’s largest furniture retailer, leverages AR/VR technology that lets users experience how a particular furnishing item will look in their home, office, school, or studio and transform the space.

AR/VR feature in IKEA app

AI-Powered Chatbot

In today’s AI-driven age, your app must have an intelligent chatbot to provide instant assistance and support to users. The chatbot can answer frequently asked questions, provide guidance on using the app, and offer personalized recommendations based on user preferences.

Multi-Language Support

Integrating multi-language functionalities within the app can help you cater to a diverse user base and increase its reach. Your app should help users select their preferred language for the interface and listings, ensuring inclusivity for users from different linguistic backgrounds.

Also Read: Key Challenges Faced in Developing Multilingual Mobile Apps

Accessibility Features

Ensure that your app is accessible to users with disabilities by incorporating accessibility features such as WCAG standards, screen reader compatibility, voice commands, and customizable font sizes and color schemes. Accessibility features enhance usability and inclusivity, allowing all users to navigate and interact with the app comfortably.

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How to Develop a Marketplace App Like Gumtree?

Developing a marketplace app like Gumtree is a complex process that goes through several stages and considerations. Here is a step-by-step Gumtree app development process.

Gumtree App Development Process

Conduct Market Research

The first step in the Gumtree app development process starts with conducting thorough market research. At this initial stage, you must analyze competitors, understand the target audience, and know the app trends to identify potential opportunities and challenges.

Define Features and Functionality

The next vital step is identifying the essential features and functionality for developing a classified advertisement app like Gumtree. In addition to integrating the essential features mentioned above, you can visualize other functionalities, such as visual search, gamification, etc., based on your app’s specific demands.

Design UI/UX

Now, it is time to design intuitive and visually appealing UI/UX and wireframes to visualize the look and feel of your final product. When designing UI/UX, prioritize consistency in colors, typography, and branding elements to enhance ease of navigation and user experience.

UI/UX design of Gumtree iOS app

Develop the App

It is indeed the most integral step of the Gumtree app development process, where your app developers bring your product idea to life. At this stage, the experts develop a product catalog with all the functionalities you intend to have in your app and give shape to your visualized app idea while ensuring security and compatibility with various devices and screen sizes.

Test the Product

Before you launch your product for the end users, it goes through the testing and quality assurance phase, ensuring the uninterrupted functionality of the platform. This is the stage to address any bugs, glitches, or errors early in the development cycle.

Submit the Application

After testing and quality assurance, you can deploy them to the targeted platforms (e.g., Apple App Store, Google Play Store). When submitting the app, make sure to follow app store guidelines to facilitate smooth approval and distribution.

Update and Maintain

Lastly, you must regularly update your app with new features, security patches and bug fixes to optimize app’s performance and user experience. Remember, mobile app development is a one-time process but app maintenance is an ongoing journey.

Business Models for a Marketplace App Like Gumtree

Gumtree follows a simple business model with a two-layer functionality. In the first layer, your marketplace app attracts numerous customers who register for free accounts and search for their desired products and services. Moving to the next layer, sellers gain access to the platform to list their products and services for a nominal fee.

Based on these two layers, you can generate revenue from your classified platform through four distinct channels: Listing Fee, Product Marketing Fee, Advertising Fee, and Referral Fee.

Money Making Models of A Marketplace App

Listing Fee

Typically, product listing on a marketplace app is free, but you can also charge vendors a fee to list their products in specific categories, such as vehicles or rentals, alongside the option for customized pricing for mass user categories.

Subscription Fee

You can offer sellers different subscription packages, such as silver, gold, or premium, to enhance their product’s visibility and boost reach. Pricing for these packages is determined accordingly, ensuring flexibility and value for sellers with varying needs and budgets.

Advertisement Fee

Gumtree provides sellers with special product categories for advertisement on its platform, with paid products listed at the top of a leaderboard. Thus, you can charge vendors based on the banner size they prefer for their products.

Referral Fee

Gumtree generates revenue through a referral model by promoting items on third-party platforms. When users make a purchase by clicking on the link, you can receive a small commission for each product bought.

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Leverage Appinventiv’s Experience in Marketplace App Development

Building an app like Gumtree brings forth numerous business benefits. By addressing the challenges vendors face in selling their products and buyers face in finding the desired items, your marketplace app serves as a one-stop solution for both. Accordingly, you increase your chances of generating leads, attracting new customers, gaining competitive advantages, and sustaining continuous growth.

So, if you are interested in creating an app like Gumtree, reach out to our team at Appinventiv and get expert assistance for marketplace app development. As a leading provider of eCommerce app development services, we can help you with the seamless Gumtree app development process and even provide post-launch support.

Our team of 1500+ tech evangelists specializes in creating various types of feature-rich mobile applications, including marketplace platforms and classified advertisement apps like Gumtree. For instance, we helped 6th Street revamp its entire app module with new features for a better user experience, resulting in 3+ million iOS and 1+ million Android downloads.

Por partnership with 6th Street

Even if the cost to develop an app like Gumtree or something similar can be extreme, its benefits far outweigh the initial costs. So, if you truly want to create an app like Gumtree that can stand out in today’s digital age, partner with us now.


Q. How much does it cost to build an app like Gumtree?

A. There is no predefined formula to quote the exact cost to build a classified advertisement app like Gumtree. However, to give you a rough estimate, we can say that Gumtree app development costs between $30,000 to $300,000 or more.

Various factors can increase or decrease this cost range, including the project’s complexity, features, UI/UX design, platform compatibility, location of app developers, etc.

You can discuss your project idea with our efficient eCommerce app development team and get a precise estimate for cost and timeline tailored to your specific business requirements.

Q. How long does it take to develop an app like Gumtree?

A. The time it takes to create an app like Gumtree also varies based on various factors, including the product features, platform compatibility, UI/UX design, the size and expertise of shopping app developers, and so on. On average, the marketplace app development timeline lasts from 4 months to 1 year or more.

Q. What are the benefits of an app like Gumtree?

A. An app like Gumtree offers several business benefits, including:

Increased Customer Base: With a marketplace platform like Gumtree, you can attract a diverse customer base, expanding your reach and potential market.

Revenue Generation: By leveraging various monetization strategies, you can generate immense revenue streams to grow your business.

Lead Generation: By facilitating seamless transactions between buyers and sellers, you create opportunities for lead generation and potential cross-selling of products or services.

Brand Building: Establishing a widely used marketplace platform enhances your brand image and credibility in the market.

Market Insights: With features like predictive analytics and AI integration, you gain valuable insights into market trends, user preferences, and product demand, enabling informed decision-making.

Partnerships and Collaborations: Collaborating with different businesses and service providers helps enhance your platform’s offerings and user experience.

Cost Savings: By leveraging advanced technologies like NLP, IoTAI, AR/VR, etc., you can save on expenses such as utilities, staffing, etc.

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