“Live & Let go” has been the motto of many of our lives for a number of years we can’t even imagine. But apps like Letgo have transformed the way we were letting go of our preloved stuff into a money-making option. Letgo is a buy-sell marketplace app, well-known as “the go-to app for selling your stuff.” It has been an inspiration for entrepreneurs who want to develop a marketplace application that solves their audience’s potential problems.
Founded in 2015, based in New York and Barcelona, the app serves its services in more than 40 nationalities. The marketplace app Letgo owns over 100M downloads and has an average of 200 million listings. Letgo’s achievements indicate how swiftly this buy and sell local marketplace industry is growing. Letgo is among the most successful classifieds apps that allow the listing and discovering pre-owned stuff effortlessly.
Reasons why users love and entrepreneurs aspire to make an app like Letgo
Successful selling: There are a few rules the Letgo marketplace platform follows that ensures that everything a user lists on the app will be sold out successfully. For example, Letgo is all about fly pages of products that contain images and texts, so that users browses, checksout, and clicks on a relevant fly page (i.e. product images with a short description). So, it advises sellers to work on the photo and make it look attractive as well as informative enough.
In-app Correspondence: Another component that makes a user’s deal successful quickly is the communication between seller and buyer. The online marketplace Letgo facilitates an in-built chat that comes in handy to specify all the necessary details for both parties. Further, users can discuss and arrange for a meeting conveniently on the app itself.
Discover and be discoverable:In the functionality, Letgo has provided a search option that allows buyers to discover through names or categories of things, regions where they are available. Likewise, sellers can list their items incorporating names and categories buyers would use to search their items.
Use of Google Maps in a contemporary way:The Letgo buyers and sellers marketplace app has utilized another option that works in users’ favor– is Geotagging. Sellers can modify the proximity radius in their listing that will show products available near to the customer. Letgo uses a Google Maps service that offers convenient and well-detailed maps for different regions.
Useful personalization:While building a marketplace mobile application, you cannot miss out on the user personalization elements used by Letgo itself that enhance user engagement. Such elements are:
Localizations: When you plan to expand your project to other countries, you must think about language support; Letgo comes in more than five cosmopolitan languages, including English, Spanish, Italian, Turkish, Czech, etcetera. It gives users a personal touch and encourages them to use your app for selling and buying locally.
Push-notifications:It is a handy way for users to stay updated with the new content of the app. However, you must know, neither Apple nor Google guarantees the delivery of every push-notification. Thus, you should encompass other ways to engage users with the latest updates on your app. It could be email, text messages, or news feeds.
If you are concerned about the scope of your business in the local-based marketplace, then you have to see this;
A Statista report states, Worldwide retail eCommerce sales amounted to USD3.53 trillion in 2019, and the revenues from e-retail are projected to grow to USD6.54 trillion by 2022.
Market.us research shows the number of digital buyers reached 2 billion in 2019 that is expected to grow by 65% by 2021.
Customer-to-Customer (C2C) marketplace has snowballed by platforms like Etsy, Airbnb, Letgo, eBay, etcetera. Even Amazon is growing more as a C2C platform with emerging local sellers.
You may think the possibility of creating a new C2C platform like Letgo is low, for there are massive platforms already existing. But do not forget that there will always be a “niche” for you. For example, BlaBlaCar and Lyft for ride-sharing and earning, a platform for any community like Wattpad for writers that allows them to read, publish, and buy books online.
Now that you are interested in marketplace app development like Letgo for your business let us give you some insights. Such insights are above hiring mobile app developers or an on-demand app development company. It’s a theory every business app owner must practice. Can’t wait? Let’s dive into it right away!
Pre-development theory to develop a Marketplace App like Letgo
Foundation of Concept like Letgo
The concept of LetGo is to connect people who have second-hand things to sell with people who are ready to buy them. This way, it helps them to make a peer-to-peer deal. Meanwhile, the app’s simplicity and convenience render the user value of the service that Letgo achieves by automating some of its processes with Artificial Intelligence.
For instance: When a seller photographs a TV to sell on Letgo, the app’s artificial intelligence:
Scans the photo and defines the kind of TV.
Formulates a headline for the ad and provides a brief description of the product.
Suggests a price of the product based on the history of related transactions.
The automation saves the seller’s time up to 15 to 30 minutes from writing a brief and determining the competitive price of the product. Furthermore, it helps with a photo and publication confirmation for an advertisement that reduces the seller’s other two actions. Thus, the Letgo app simplifies the selling process for sellers that increase the number of buyers.
The business and operating model of the Letgo marketplace app is focused on buying and selling used goods. The system acts more like a message board on Craigslist; it shows fly pages of products instead of messages. The system shows sellers’ ads to buyers within a radius of 50 miles that enhances the chances of fulfilling such transactions.
Unlike Craigslist, Letgo allows free ads for all products and regions. It sorts out the listings by relevance, distance from the user, considering the history of previous searches and purchases.
Although, in the Letgo marketplace app, you cannot sell or buy any services, only goods.
Positioning everything in a business flow might become challenging and frightening. You are continuously worried that none of the aspects gets left out.. Hence, smart entrepreneurs go with the Lean Canvas Model-One Page Business Model. It helps you to put and dominate each business aspect on one page evenly.
App Monetization (How Letgo earns profit?)
Bump Up- Premium feature:
Letgo offers this premium feature that places an ad in the spotlight and shows the ad over the inherent search results. It charges $2 from sellers to place an item at the top to drive more attention to it for 24 hours.
It is a specific feature for auto dealers to get competitive visibility on the app. It helps dealers to receive more local leads without hassle. Letgo imports and syncs their ads, and puts click-to-call on all such listings, and brings leads who are ready to buy straight to the dealership! The price for the facility starts from $99 with a free trial for 30 days.
Google Ads: Contextual advertising of products, services.
Key features of the Letgo application you should consider
Inserting the existing functionality of Letgo into your product requirements document can be fruitful for your own marketplace app. Nevertheless, to stand out from the crowd, you must consider their shortcomings and come up with unique functions that only your app will have.
Take LetGo’s unique artificial intelligence functionalities into account during the wireframe, prototype, and till the final development stage. Image recognition system, built-in chat, and video listing that streamlines and boosts the publication of announcements. Other features to consider to make a marketplace app like Letgo are;
Social sign-up/log in:
The majority of today’s marketplace applications build functions of registering by email id, phone, or social networks.
With Artificial Intelligence and image recognition, LetGo creates ads automatically. In addition, it allows sellers to use short videos in the application. You can integrate the same.
Product and Price Comparison:
The feature helps the users to choose the product within their preferred budget and make more informed decisions.
LetGo’s GPS integration increases the relevance of listings by bringing both parties together that are within a 50-mile radius of each other.
Multi-currency and language support:
Letgo operates in multiple countries that ideally require multiple languages and currency support, and so does your app (if you intend to expand it to that level).
It’s a vital feature that lets sellers click photos and add them to the ads in real-time. The ability to edit photos, resize them, adjust the brightness, and contrast greatly amplify user engagement.
The feature simplifies the buyer-seller interaction and makes it convenient to discuss the transaction details within the app.
Ratings and reviews:
It offers a chance to create a reputation for every user to protect other buyers from dubious sellers, and vice versa.
Recommendations and offers:
You can provide contextual offers and recommendations depending on search queries or a user’s past activity. You can drive extra revenue If you make this list paid.
The feature can be used for recommending how to classify a product, product prices, and what should be a description of it. Moreover, you can track the photo quality and determine its authenticity if it was used in the past.
Multiple payment gateways are needed to offer a hassle-free payment process. You need to study the local market, your competitors, and legislation to use popular payment gateways in the desired region.
App’s success lies in how convenient the UI/UX design is
Subsequent to conceptualization, business model, revenue model, and functionality, there is UI/UX design you must focus on. Talking about Letgo’s design, it aims at people who fancy bright colors and prefer go-to apps. Hence, it has used a color plot combining red and white while keeping the application interface intuitive and straightforward.
When you create a marketplace app like Letgo, you can use a similar color scheme, as users like to see the familiar model. Though, blindly imitating the design is not worth it because, firstly, it’s illegal, and secondly, unreasonable as people despise total plagiarism.
If you wish to know why and how you should focus on creating good app design, read this blog.
How much does it cost to Develop a Marketplace App like Letgo?
If you are determined to build a buy & sell app like LetGo that relies on automation, don’t forget to add the essence of Artificial Intelligence and an image recognition system. Concerning the budget requirement, the marketplace app development cost depends on Features and their complexity, Time, App development company, and Location.
However, most of the time, the local marketplace mobile app development costs around $10,000 to $25,000. While a sophisticated buy and sell app development may cost around $40,000.
Furthermore, the cost calculation of LetGo like app diversifies with a country of app developers as they charge individually, for example;
Indian developers: – $10 to $80 per hour,
U.S. based developers: – $50 to $250 per hour
Eastern Europe based developers: – $30 to $150 per hour
When it comes to developing functionalities of a buy and sell marketplace app, each phase takes its time, and the average time would be;
UI/UX design (60 Hours)
Front-end and Back-end development (400 Hours)
Technical documentation (40 Hours)
Polishing and bug fixing (40 Hours)
If you see nearly all components required to estimate the cost to develop a marketplace app like letgo is here. Now, you can assess and figure out how you get cost-effective development. Besides, for any queries, we are already here to serve you.