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.
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.
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.
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.
