Estimating the Cost of Software Development for Online Business

It is predicted that in 2019, online retail sales worldwide will exceed US$3.4 Trillion. The e-commerce industry is booming with the increase in the use of smartphones. More and more users are finding it easy, feasible and reasonable to use eCommerce sites rather than physically going to make a purchase. Going through eCommerce sites is simple and time saving for users thus the inclination.

More and more businesses are now going digital as they can see the scope of development in an eCommerce business. Software development companies are flooded with the request of software application development to launch eCommerce sites to users. While this is a very lucrative idea to go with, this comes with a fortune for business.

The development of software for eCommerce business depends on the amount that is planned to spend on the development. The higher the cost, the more feature-loaded app would be developed and vice versa. How should a business estimate the cost of software development for an online business? What are the factors to be looked upon before getting started with the development? We shall reveal all for your better understanding. Keep reading the blog.

1. Length & Scope of Work

The increased use of eCommerce websites, web apps, instant apps, and mobile apps are nowhere going to fade anytime soon. More and more developments are raining in the direction of eCommerce industry development. To develop software for eCommerce online business, a software development company need to first analyze the platforms that business is looking to cover. The increase in the number of platforms increases the cost of development. Cost and need are directly proportional to each other in software development case.

2. Online Business Cost

Online business may indeed be a cost-effective solution as it brings users closer to the brand and improves the relation between the business and users. However, there are some hidden costs incurred in the development of eCommerce software development which needs to be talked about. These are essential add-ons to the eCommerce industry that brings connectivity between both the parties. Few to mention here are:

  • Logistics
  • Business tax
  • Marketing cost
  • Warehousing
  • Human Resources and more

3. Market Placing Cost

Online business has various ways to promote their products and services as there are many platforms available online that can reach to audiences at any level. They can also take the support of big players in online business to place their products on their site for maximum visibility to buyers. However, these big players like eBay, Amazon incur a fee to display your products on their websites along with a “Final Value Fee” which is a percentage of the sale price. This adds to the cost of software development for online business as it is necessary to make use of all possible platforms to reach out to the maximum audience possible.

4. Basic vs. Advanced

Online business software is composed of many features and functionalities that elevates the experience of using it. For example, Amazon and eBay are few such sites that are highly rich in features and functionalities. A business that tends to launch its online business for the first time cannot play the game to spending too much on software development and end up getting nothing in return. Most of the businesses start slow and basic rather than going extravaganza. As the addition of more elite features would cost more to the business, thus it’s advisable to start slow and with time upgrade the software as business grows.

5. Maintenance & Support

Even in our previous blogs, we have mentioned that software development for any business is a tricky and tedious task. It does not end at the delivery of the product to the client and stakeholders. It exceeds with maintenance and support of the application. Without proper maintenance of the software application, there is no possibility that it would sustain the ever-changing dynamics of the market. The price of maintenance is one such segment that can affect the overall cost of software application development.

Usually, you will find that a custom software development company offers basic support and maintenance to the online business in the cost of development. However, the addition of any new feature or functionality surely elevates the total cost of development easily.


Software development companies don’t have an ordinary job. They need to understand their client’s expectations and develop software that best defines their judgment. It’s the users that are going to use the software and pour profit and growth for the business. In the case of online business, software development becomes very critical as it would be a direct channel of interaction for both users and clients. The better the interaction, the better is the possibility of growth of the business. Cost plays an important role in deciding the overall look and feel of the software application. The smart move for an online business is to start basic and enhanced with time leading to definite success eventually.

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