A Proven Business Model To Launch a High-Grade Local Buy And Sell App
The connection between a seller and a customer has always been difficult before a mobile boom. Everything has changed since we've gotten used to having everything we need in a smartphone. Now, you can acquire users just by sitting at home or from any part of the world. Some customers prefer to order used things in their area instead of paying an arm and leg for long distance shipping. And if you are interested in a mobile solution development for local customers and sellers, well try to explain how to create such a solution the best possible way.
We know that the leading applications to sell stuff locally are LetGo and OfferUp.
The OfferUp developers claim that their users spend approximately 25 minutes a day in their app, just like for Instagram and Snapchat. The use of mobile applications is growing in all business areas and its a great opportunity for a P2P e-commerce market to create an app to sell products. The secret to success is simple. The easier and more comfortable the way you connect a customer and a seller is, the more successful your application will be.
How to create a buy and sell app
To understand how to build an app like LetGo or OfferUp, you should read about important steps.
- Conduct an analysis of the best selling apps
- Elaborate business model to create buy and sell app
- Choose a tech stack to build a buy and sell app
- Main basic features should be added
- Create a good brand name
- Build an attractive UI and UX of your buy and sell app
- Add a shopping cart
- Integrate a payment gateway you consider necessary
- Promote your product
- Consider fraud protection
Best local selling apps
The common feature of the apps like Offer Up and LetGo is that they allow a seller to give goods free of charge. Its a great way to get rid of some small items, which you cant sell on eBay because the service charges a commission for every transaction.
LetGo app allows you to sell stuff online in a particular area quickly and easily. The service is so easy to use you can sign up via a Facebook account. And because the system cares about the security of the platform, social registration gives an opportunity to check the data of all users. Customers and sellers communicate in the chat on the platform. And you can upload photos of the items you want to sell immediately using the built-in camera in the app. So if you create app like LetGo, you make use some of its features.
Let Go app
OfferUp app is the biggest marketplace for local customers and sellers. The app provides security because it allows every user to build their reputation on their profile page. Just like on eBay, users can rate a person after a deal. As well as that, customers can join their service TryYou and add their ID to prove the authenticity of a profile. The system provides a security chat but the deals are conducted personally.
Offer Up app
Business model of apps like Offer Up and LetGo
How does OfferUp work? These services have lots of things in common and work pretty similar. And one of these similarities is a business model which, as they claim, they don't have. These selling apps don't charge the commission for registration, profile creation, and not even for the number of ads. More than that, they don't take a commission for a deal. OfferUp developers intended to earn exclusively on advertising to keep the service free and available for everyone.
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Yet, if you want to learn how to make an app like OfferUp or LetGo, we suggest you taking into consideration some of these monetization strategies.
Local buy and sell app monetization strategies
If customers can pay via your app, you can charge a fixed price or a percent of every deal. Its easy to do with some third-party services like Stripe, for instance.
What is meant here is the ability to buy some special offers, or sellers can pay to place their ads at the top.
Your service can also be a mediator allowing sellers to expand the trading territory.
An opportunity to publish action offers, special offers and a system of internal recommendations.
Tech stack to build a buy and sell app
Let’s define what tools and third-party services our marketplace app development company may use to create mobile buy and sell apps.
- Server-side development: Express.js, Node.js.
- Frameworks: Angular.js, Backbone.js, React.js
- Languages: Swift/Objective-C (iOS apps), Kotlin/Java (Android apps)
- Database: MongoDB, MySQL
- Cloud architecture: AWS
- Payment integration: Braintree, Stripe
- Web server: Nginx
- Other tools for monitoring, hosting etc: AWS S3, Confluence, Swagger, MailChimp, PostgreSQL
Of course, these tools are not the only ones we can use for the development of your buy and sell app, tech stack for your project will be selected according to specific requirements and particularities of the project.
Basic buy and sell app features
To copy an existing LetGo business model is certainly the best way to create your own mobile app. However, don't forget that your should have originality and it should contain some unique particularities. Firstly, you can take into account your competitors drawbacks. Secondly, you can publish an app and scale if its needed.
Now, when we know how local online buy and sell apps work, let's see what functionality we need to include into our own model. We will consider an MVP development model because it gives more opportunities for startups, as well as saves money and time for development.
Thus, your mobile app has to include such features:
Basic features of apps to sell things
All best apps to sell stuff locally have social registration feature. The feature will not only increase the users reliance towards your service but also will simplify the process of proof of identity. Moreover, a user doesn't need to enter his data manually because all information will be pulled automatically from a social network.
Personal data of a seller or a buyer will be shown as well as all items for sale.
Bear in mind that the search should be conducted on the basis of the customers location. What you need to add here is an option to extend or narrow the search band. It will be easy to perform as almost all modern smartphones have built-in GPS utility.
Advanced filters are needed to make the search process easy and fast. You can divide all goods into categories, groups and subgroups to minimize search time.
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Each listing can have two options. For instance, choose colour, necklace chain length, smell and other details for in case a seller has some similar goods with different variations. A user can choose an option from a list or enter his own. Here it would also be great to add a size chart.
The ability to take photos in the app and upload them immediately. A pleasant addition that the sellers would appreciate is the opportunity to edit photos, cut them down, adjust brightness and contrast.
It would be highly inconvenient to have an app without the ability to talk about the details of the deal, so the option for chat is really needed.
The feature helps build the reputation of customers. And soft articles according to a sellers rating. At the same time, the feature protects customers from unreliable merchants.
The feature allows the expansion of the audience of users.
Additional features to build the best buy and sell app
The features we've mentioned are basic. So to make your app special, you should take additional functionality, that all users appreciate, Into account.
Secondary features for the buy & sell nearby app
It is a great opportunity for a user to choose the best items.
The ability for a seller to offer hot deals, discounts or coupons is great. If you make this feature one that has to be paid for, it can bring you some extra income.
Add categories like best deals and recent offers. This is a great way to motivate sellers to play fair and improve their rating.
With the help of this feature, your app can give recommendations about how to fill in article descriptions and article categorizations. You can also track the quality of the uploaded photos. On various forums customers complain about the quality of photos or that they are fake. Some services solve such issues by the deactivation of a deal and ask a seller to add at least one live photo of an item.
A service like Stripe can be used, for instance. When a customer uses it for the first time, the service asks for his or her credit card information and phone number. After that, the user just enters his or her email and a special code is sent to their phone number. The code confirms all the customers' data, so they don't need to enter it every time they use the service.
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Steps on how to make a buy and sell app
Check out main steps you should undertake to understand on how to make an app to sell things effectively.
1. Think about a crowd-pleasing name
Your buy and sell app first should be attractive with its name. Users see the name first, and it should be short and topical. There are different brand name generators, and they can help you choose a really good name for your future app. But there are other important tips you should follow when choosing a name like its size, semantic load, and expectations of a target audience.
2. Engaging UI/UX is a must
Ok, now your app has a really perfect name, and you want to go on. The next thing you shouldn’t ignore is a good-looking UI/UX. Of course, you should know that good images and convenient user experience mean a lot, and your potential users will appreciate it. As you create a buy and sell an app, it should have a simple and intuitive UI and UX, as users want to see a habitual model of an app like this.
3. Add a shopping cart
People can buy various products using your app, and they should have an opportunity to add products they chose to a virtual shopping cart. When buyers made a list of products they needed, they can go to the shopping cart and proceed to the payment page or choose payment on delivery, according to their requirements. Shopping cart makes it possible to sort all products wisely.
4. Payment gateway integration
You can decide what payment gateway your buy and sell app should contain. PayPal, Braintree, Stripe - which one is good in your specific case? If you don’t know what is better to choose, you can study how competitors work and what they use. Also, pay your attention to local governmental requirements. So check out the main important factors to choose the right payment gateway.
5. Think about adequate promotion
If nobody knows that your product exists, you will gain nothing. That is why you should create a promotional plan to let everybody know about your app. You should use Google ads on different websites, although it is a rather expensive service, you will be able to increase the interest of potential customers. Also, influencer marketing can be used as an effective way of app promotion.
If you apply a serious approach, you will be able to achieve good results. Your buy and sell app will become competitive and it will quickly gain the lead.
Fraud protection in local buy and sell apps
If you want to gain customers loyalty and trust, when you found out how to create a local buying and selling app, make sure you did your best to protect them from fraud. OfferUp recently claimed that they are going to invest in customer protection reinforcement and use fraud detection algorithms. eBay and Craigslist confirm that fraud protection is key to a steady market.
Fraud protection is an important factor while working with merchants, who are used to a partnership with highly-regulated payment processing networks in buy and sell apps. Investing into fraud protection now, targeting the cooperation with merchants and mobile network providers is a well-considered step for long-term market growth in future.
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Customers comments can also be used as great preventive measures against fraud. Be ready to lose a lot of customers if you don't regulate the issues connected with the trade of substandard goods. In the case of a big number of negative comments about unscrupulous sellers or customers, inform users about measures you will assume if someone violates the rules of your app for selling things.
To create your own marketplace for local sellers and customers you need to attract as much attention to your app as possible because no one would place their goods in an app with only a few visitors. The most effective way is an advertisement. When developing your app think about a business model which will dictate the functionality needed the most. For instance, if you want to charge a commission for a deal you will need a` built-in payment gateway. And the most important thing is to make your app user-friendly and convenient for a customer. Transparency for each party gives users a chance to see the item they are interested in and discuss all the details with the seller.