How Much Does an E-Commerce Mobile App Cost? Standard Budget Structure for an Online Store

When preparing a quote for an m-commerce app, we start by choosing the technology. We also help the client define the feature set and analyze technical aspects, such as necessary integrations, as well as UX/UI design and project management requirements. Next, we estimate the time required for individual tasks and, based on that, determine the estimated project price.

See what makes up the cost of a mobile app MVP for small and medium-sized e-commerce stores.

M-commerce app scope: What makes up an MVP?

The baseline for any estimate is the app’s feature scope. In this article, we assume that the project covers all standard elements required for an m-commerce MVP, which are:

• Configuration and architecture
• Authentication and user profile
• Cart and checkout
• Favorite products/reviews
• Analytics
• Product listing
• Product page
• Push notifications
• Home screen
• Product search
• Loyalty program

This is, of course, a generalized scope for an MVP project. Every online store has a slightly different vision for their app, which is why we always prepare individual estimates.

Estimations are based on a list of tasks/features to be delivered, which together form the final product. We categorize this list into the following areas: UX/UI design, development and QA testing, and project management and communication. Each task takes a specific number of hours, expressed in man-days (MDs). One MD takes 8 hours.

Sometimes additional categories appear in estimations, depending on the project scope. In such cases, we may also estimate items like UX research or Product Discovery workshops.

Keep in mind that MD is a measure of labor effort, not calendar time. The actual duration of the project also depends on team size, parallel work between tasks, and the time needed for feedback on your end.

Phase 0, or the starter pack

Sometimes additional categories appear in estimates, depending on the scope of the project. In such cases, we may also quote services such as:

• Product Discovery workshops – as part of this service, we develop a detailed app vision, keeping in mind the client’s business goals and resources, as well as the needs and preferences of the target audience; we also analyze it from a technical perspective
• User flow diagram, information architecture, aligning the design system with the brand book, and UI designs for the critical path
• Clickable prototype representing the critical path (POC)

Part 1. UX/UI design

Once we know what the app should contain, it is time to establish how it should look. The interface design should reflect the brand’s identity while remaining intuitive and delivering the best possible user experience.

Our designer typically handles the UX/UI design and stays up to date with market trends and mobile app standards. However, if you prefer to take care of this yourself, the design costs can be excluded.

What do we do at this stage?

We create the UX/UI design of an app from scratch when building an m-commerce using a traditional approach, that is, without a previously prepared workflow.

1. First, we create low-fidelity wireframes based on the feature list. Using these wireframes, we determine where individual elements (such as buttons, text fields, etc.) will be placed in the app. Low-fi wireframes let us quickly agree on the direction and ensure the app captures the brand’s identity as effectively as possible.
2. Next, we move to high-fidelity wireframes with more detail, where the visual design is fully refined.
3. Finally, we develop an interactive prototype to show how the app’s main user journeys will work and what actions specific clicks will trigger.

Duration in traditional approach: ~36 MD

Process with Rappid Workflow

UX/UI design in Rappid Workflow looks a bit different, which translates to lower costs. Rappid Workflow is our proprietary system that leverages AI to build UI faster according to the store’s requirements, with the entire process based on business logic written by experienced developers.

Rappid lets us build on a design system, which involves adapting a library of ready-made components to the brand’s visual identity. By using a design system, this stage can be reduced from ~36 to 17 MD, cutting the time by more than half (based on our internal benchmarks).

Duration with Rappid Workflow: ~17 MD

Part 2. Development, QA tests and app launch

At this stage, code writing runs in parallel with QA testing. This lets us verify on an ongoing basis whether the app works according to specifications.

Duration in traditional approach: ~55 MD

Process with Rappid Workflow

If we use Rappid, AI automatically handles repetitive tasks, which reduces the time required for the app’s development. The estimate below also includes a buffer for a simple additional feature not included in the basic feature list.

• Example of a simple feature added to the MVP scope: additional filters on the product listing page
• Example of a complex feature outside the MVP scope: custom loyalty program

Duration with Rappid Workflow: ~30.5 MD

Total: UX/UI design + development & QA

Traditional approach: ~91 MD

Rappid Workflow: ~47.5 MD

Keep in mind:The above estimates (48% savings) apply when Holdapp handles the entire project, from UX/UI design to app development. If you already have your own design team and come with ready-made wireframes, the savings apply solely to the app development stage, coming out to ~45%.

Part 3. Project management and communication

Working on an app requires collaboration among many different specialists, and smooth communication plays a key role here, as does skillful task delegation. Furthermore, our working model ensures that the client receives regular updates on project progress.

Part 4. Backend

Backend work usually remains on the client’s side or with their subcontractor. We are only responsible for API integration.
We can also help find a trusted team of backend specialists if needed.

What increases the cost of app development?

If you want to determine how much your app might cost, consider some factors that can raise the cost of this investment.

Especially if you are thinking about Rappid Workflow, keep in mind that while it offers many benefits, its advantage over software built completely from scratch in Flutter decreases in specific cases:

• Custom design
• Custom features
• Multi-market support and multi-language interface
• Integrations with multiple systems
• Lack of an existing backend

What decreases the cost of an app?

On the other hand, some factors help lower the cost of a mobile e-commerce app project, such as:

• Ready-made, tested modules available through Rappid Workflow
• Ready-made design at the start of development work
• Highly detailed scope defined prior to project start and avoiding changes during its execution
• Shared codebase (Flutter/KMP) instead of engaging two native developers

Maintenance and m-commerce app development

The estimate does not include app maintenance costs, but it’s best to keep in mind that the choice of technology plays a crucial role here. Sometimes building an MVP is cheaper in Flutter, but future expansion plans might make native technologies more cost-effective.For instance, if you need multiple integrations with native solutions later, Flutter may not be the best choice.

As long as the app scope allows for it, Flutter, and by extension also Rappid Workflow, is often the cheaper option because it requires maintaining only a single codebase. This means you need only one developer instead of two, as with native options (one for iOS and one for Android).

For this reason:

• It is worth establishing the app’s development direction at least approximately to know whether the technology we choose will deliver the expected capabilities.
• An app’s cost should always be estimated individually, carefully matching the technology to each project by analyzing various factors (e.g., required integrations, level of app customization, store size, and the number of markets it operates in).

Billing model: T&M vs fixed price

The cost of building an MVP app also largely depends on the billing model agreed upon with the client. Typically, you have two options, each with its pros and cons.

Fixed price

Fixed price is a model where the project price remains unchanged because the total cost and detailed scope of work are agreed upon upfront at the very beginning of the cooperation.

The advantage is that there is no risk of exceeding the budget within the agreed scope of work.

Fixed price cons

• Additional costs for changes – this model doesn’t allow flexible responses to changes during the project. If a need arises to add a new feature or change technical assumptions, it requires a separate estimate and brings additional expenses.

• Sticking to the original plan regardless of the outcome – strict execution of a predetermined task list prevents leveraging new ideas or business opportunities that emerge while building the app.

Time and Materials (T&M)

Time and Materials (T&M) is a model where you pay for the time the team spends on app development and cover the costs of necessary resources used during the work.

An important element of this model is ongoing expenditure control. Although the budget is not strictly guaranteed upfront, the client receives regular cost updates and decides on the scope of subsequent work on an ongoing basis, allowing them to control expenses throughout the project.

T&M cons

This model is more flexible, but the final app cost may differ from the initial estimate. We prepare an estimate at the beginning; however, the ultimate cost depends on the team’s actual working time and the resources used.

You can learn more about this in our article on time and materials and fixed price, where we describe the pros and cons of both billing models.

Which billing model to choose with Rappid Workflow?

At Holdapp, we most often use T&M because many of our projects require flexibility, despite having a previously defined scope of work. The situation is somewhat different with Rappid Workflow, where ready-made MVP modules make it easier to estimate the exact time and scope of work, making fixed price a better fit.

Individual approach to project estimation

There is no universal figure that can be given when it comes to building a mobile app. The cost of the investment depends on a number of different factors such as technology and project scope, as well as business goals, future plans, or the billing model.

Before asking for an estimate, it is worth determining what scope of features you need to start with. You can do this on your own or with our team during Product Discovery workshops.

Want to know how much your app will cost? Tell us about your project. We will prepare an initial, no-obligation estimate tailored to your scope.