Have you ever used Carousell to sell your old iPhone or buy secondhand furniture? It’s pretty cool, right? You snap a photo, post it, chat with buyers, and boom,money in your pocket.
Now imagine creating your own app just like that. Exciting? Absolutely. Scary? Maybe a little.
Here’s the thing: you don’t need to be a tech genius to understand what it takes to build an app like Carousell. You just need someone to explain it in plain English, no confusing jargon, no tech-speak. That’s exactly what I’m going to do today.
Whether you’re a business owner with a great idea, an entrepreneur exploring new opportunities, or just curious about how these apps work, this guide will walk you through everything: what you’re building, how much it costs, how long it takes, and what mistakes to avoid.
Before we talk numbers, let’s understand why building an app like Carousell makes sense right now.
Here’s a fun fact that might surprise you: the global online classifieds market is expected to hit $35.8 billion by 2027, growing at about 7.2% annually. In Singapore alone, Carousell has over 11 million active listings and processes millions of transactions every year. That’s not just impressive, it’s proof that this business model works.
But it’s not just about the money. Something bigger is happening in how people shop. The secondhand economy is absolutely booming, and there are three main reasons why. First, Gen Z and Millennials genuinely care about sustainability. Studies show that 73% of global consumers say they’re willing to change their shopping habits to reduce environmental impact. Buying used isn’t just smart anymore, it’s cool and responsible.
Carousell nailed the formula early on. They kept the interface super simple, focused on local communities where trust matters, and built features that made transactions feel safe. That’s why they’re still the top marketplace app in Singapore despite countless competitors trying to take their crown.
Before we talk about money, let’s make sure you understand what an app like Carousell actually is. This isn’t just a “listing app” or a “buy and sell platform.” It’s a complete ecosystem with many moving parts.
Think of it like building a mini digital city. In a real city, you need roads for people to travel, shops where business happens, security guards keeping everyone safe, a post office for communication, banks handling money, and traffic controllers making sure everything flows smoothly. Your app needs digital versions of all these things.
The app people see on their phones is just the front-layer storefront, if you will. Behind that, there’s listing management so sellers can post items easily. There’s a search and filter system so buyers can find exactly what they want among thousands of listings. There’s a chat system for real-time communication between buyers and sellers. There’s payment processing to handle money safely. There’s delivery coordination if people want shipping instead of meetups. There’s a trust and safety system with ratings, reviews, and fraud detection.
Here’s what many founders don’t realize: each of these components is like a mini-project on its own. The chat system alone requires servers running 24/7, managing thousands of conversations simultaneously, sending notifications instantly, and storing message history. The payment system needs bank-level security, compliance with financial regulations, and seamless integration with multiple payment methods.
Understanding this ecosystem helps you see why building an app like Carousell costs what it does. You’re not just paying for someone to slap together a few screens. You’re paying for a sophisticated, interconnected system where every piece needs to work perfectly with every other piece. Miss one component, and your entire marketplace falls apart.
Now let’s break down exactly what features your marketplace app needs to succeed. I’m going to show you this in a clear table so you can see at a glance what’s essential versus what can wait.
| Feature | Purpose | Complexity | Priority |
| User Registration & Profiles | Let people create accounts with email, phone, or social login. Build identity and accountability | Medium | Must-Have (Phase 1) |
| Listing Creation | Sellers upload photos, write descriptions, set prices, and choose categories | Medium | Must-Have (Phase 1) |
| Search & Filters | Help buyers find items by category, location, price range, condition | High | Must-Have (Phase 1) |
| In-App Chat | Real-time messaging between buyers and sellers for negotiation | High | Must-Have (Phase 1) |
| Payment Integration | Secure checkout via credit card, PayNow, GrabPay, etc. | High | Must-Have (Phase 1) |
| Push Notifications | Alert users about messages, offers, and new relevant listings | Medium | Must-Have (Phase 1) |
| Reviews & Ratings | Build trust through user feedback after transactions | Medium | Must-Have (Phase 1) |
| Admin Dashboard | Control panel for managing users, listings, and handling disputes | High | Must-Have (Phase 1) |
| AI-Powered Search | Visual search, smart recommendations based on browsing history | Very High | Add Later (Phase 2) |
| Delivery Integration | Partner with Lalamove, Grab, or Ninja Van for logistics | Medium | Add Later (Phase 2) |
| Seller Analytics | Dashboard showing views, likes, conversion rates, and best-selling items | Medium | Add Later (Phase 2) |
| Featured Listings/Ads | Paid promotion for sellers to boost visibility | Low-Medium | Add Later (Phase 2) |
| Video Uploads | Let sellers add video tours of products | Medium | Add Later (Phase 2) |
| Social Sharing | Share listings on Facebook, Instagram, WhatsApp | Low | Add Later (Phase 2) |
The Phase 1 features are everything you need for your marketplace to actually function. The Phase 2 features are nice to have and can definitely improve your app, but they’re not critical for launch.
Here’s a pro tip from our experience at YeasiTech building marketplace apps: founders who try to build everything at once almost always fail. They run out of money before launching, or they build features nobody actually wants.
Smart founders launch with Phase 1 features, get real users, gather real feedback, then add Phase 2 features based on what users actually ask for. This approach can easily save you $50,000 to $80,000 in initial development costs.
You might be thinking: “If people can list items for free, how does this business make any money?” Excellent question! Understanding the revenue model is crucial because it determines whether your investment will ever pay off.
Carousell uses what’s called a freemium model with multiple revenue streams. Let me break down each income source so you understand how the money flows.
When someone buys an item through CarouPay (Carousell’s integrated payment system), Carousell takes a small percentage, typically between 2.5% and 5% depending on the category. So if someone sells a laptop for $500, Carousell might earn $12.50 to $25 from that single transaction. This seems small, but multiply it by thousands of daily transactions, and you’re looking at serious money. Industry estimates suggest this is Carousell’s primary revenue source, potentially generating tens of millions annually.
Imagine you’re selling a camera and there are 50 other cameras listed. Your listing is buried on page three. For just $0.50 to $5 (depending on the category and duration), you can “bump” your listing to the top of search results. Suddenly, everyone sees your camera first. It sells within hours instead of days or weeks. Sellers love this feature because it works, and they’ll pay for it repeatedly. Some power sellers bump every single listing they post. With thousands of listings posted daily, featured listings reportedly generated $8-10 million annually for Carousell in 2023 alone.
Once your marketplace has significant traffic, we’re talking 50,000+ daily active users, brands become interested. Samsung might pay $5,000 to run a banner ad campaign targeting people browsing electronics. Nike might pay to advertise to people looking at sports equipment. IKEA might target people browsing furniture listings. The beauty of marketplace ads is that they’re highly targeted. You’re not showing camera ads to people looking for baby clothes. This targeting makes the ads more valuable and allows you to charge premium rates.
Carousell offers CarouGold at $5.99 per month. Subscribers get unlimited bumps, priority customer support, advanced analytics showing how many people viewed their listings, and other perks. Professional sellers and small businesses happily pay this because it helps them make more sales. Even if only 2% of your users subscribe, that’s predictable monthly revenue that compounds as your user base grows.
When users book delivery through integrated partners like Lalamove or Ninja Van, Carousell earns a small referral fee. The user gets convenience, the delivery company gets business, and Carousell gets passive income. It’s a win-win-win situation.
Alright, here’s what you’ve been waiting for: the actual money you’ll need to spend. I’m going to break this down in clear tables so you can see exactly where every dollar goes.
| Component | What You’re Getting | Estimated Cost (SGD) |
| UI/UX Design | Complete app design including wireframes, user flow mapping, visual design for all screens, branding elements | $1,000 – $5,000 |
| Frontend Development | iOS + Android apps built with React Native, responsive design, smooth animations, and offline capabilities | $2,000 – $6,000 |
| Backend Development | API development, database architecture, server setup, user authentication, data management | $1,000 – $5,000 |
| Payment Integration | Stripe/PayNow/GrabPay integration, transaction processing, refund handling, security compliance | $100 – $500 |
| Chat System | Real-time messaging using Firebase or Twilio, typing indicators, message history, image sharing | $500-$1,000 |
| Admin Dashboard | Web-based management panel for user management, listing moderation, analytics viewing, dispute resolution | $1,000 – $2,000 |
| QA & Testing | Comprehensive testing across devices, bug identification and fixing, performance optimization | $300- $600 |
| Project Management | Sprint planning, team coordination, requirement documentation, progress tracking, client communication | $500-$1,000 |
| App Store Deployment | Developer account setup, app submission to App Store and Google Play, screenshot creation, listing optimization | $300- $600 |
Building the app is just the beginning. You need to budget for at least two years of operations, not just development. Many successful marketplace apps don’t become profitable until year three, so you need a runway to survive and grow. YeasiTech offers flexible post-launch support packages that scale with your needs and budget, so you’re never paying for services you don’t need yet.
Building an app like Carousell is a significant investment, but it doesn’t have to drain your resources or leave you confused about what you’re actually paying for.
At YeasiTech, we’ve built our reputation on delivering high-quality marketplace apps at costs that make sense for startups and growing businesses. We’ve helped over 30 founders turn marketplace ideas into successful platforms across Singapore, Malaysia, and Southeast Asia.
Our MVP-first approach gets you to market 40% faster while saving you $50,000 to $80,000 in unnecessary initial costs. Our hybrid team model gives you local expertise at globally competitive rates. Our modular architecture protects your long-term investment. Our experience with 30+ marketplace projects means we’ve already solved the problems you haven’t encountered yet.
Ready to turn your marketplace idea into reality? Request a personalized cost estimate today. We’ll provide you with a clear roadmap from concept to launch. Let’s build something great together.
The cost depends on features, platform, and complexity. A basic MVP costs $5,000–$10,000, while a full-featured app can cost $6,000–$12,000+. Starting small helps validate your idea before spending big.
An MVP usually takes 3–4 months, including design, development, and testing. A full-featured marketplace app may take 6–9 months, depending on complexity.
Must-have features include user login, product listing, search filters, in-app chat, payment gateway, ratings & reviews, and push notifications. Advanced features can be added later.
Yes! Start with a Minimum Viable Product (MVP) that focuses on core features. Once it gains traction, you can expand with more advanced functionality.
Working with an experienced partner like YeasiTech ensures your app is built efficiently, scalable, and cost-effective. They specialize in marketplace apps and startup-friendly solutions.
YeasiTech is a trusted IT service partner with 8+ years of experience, empowering 250+ businesses with scalable web, mobile and AI solutions.
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