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How Much Does it Cost to Develop an E-Commerce Marketplace App Like Nykaa?

Without question, one of the most recession-proof businesses is the beauty sector. Over the past twenty years, there has been a significant surge in the beauty and cosmetics industry's income generation.

When it comes to the constantly shifting preferences of customers and the availability of items, this specific industry is rather dynamic. The need for cosmetics never goes away, even with the seasons.

Everyone's thinking about Nykaa at the moment! The business makes certain that its image is realized in all facets of marketing and leaves a lasting impression on both its current and prospective clientele.

One of the top online retailers in India for cosmetics and wellness goods is Nykaa. Established by Falguni Nayar in 2012, Nykaa has emerged as a significant participant in the Indian e-commerce landscape, namely within the beauty and personal care domain.

The reasons for Nykaa's success include its dedication to quality and innovation, its broad product selection, its exceptional online shopping experience, and its awareness of and attention to the unique demands of Indian customers in the beauty and wellness space. It has had a major influence on the development of India's online retail market, especially in the cosmetics and personal care sector.

The Foundation and Its Origin

Falguni Nayar launched the Indian e-commerce site Nykaa in 2012 with a focus on beauty and wellness items. Nayar, a former investment banker, saw a need for a specialized online marketplace for personal care and beauty products in the Indian market. She founded Nykaa with the intention of satisfying Indian customers' demands by providing a wide range of superior cosmetic items.

Due to its wide choice of products and dedication to quality, the platform quickly became well-known and earned the confidence of users. With time, Nykaa has increased the range of items it offers, including private label goods, and has grown to be a significant player in the Indian e-commerce market.

Currently, Nykaa is operating on an Omnichannel strategy and has a significant online and physical presence. The firm operated primarily on internet platforms and built its basis as a multi-beauty and personal goods brand. Over time, the product line expanded to include health, luxury, stylish clothing, hair care, and many more categories for both men and women.

From Inception to Expansion

In order to bridge the gap in the Indian markets, Nykaa was introduced in 2012 by Falguni Nayar, who focused on the beauty and cosmetic app industry. Nykaa provided an enormous selection of goods from both foreign and Indian companies.

Subsequently, in 2015, Nykaa opened its physical storefronts to have a strong offline presence in the Indian market and began developing an Omnichannel system. As a result, it accelerated the company's growth in sales and revenue.

Demand for Beauty and Cosmetics Products

Due to a number of causes, including changing lifestyles, a growing middle class with more disposable incomes, more knowledge of global beauty trends, and the impact of Bollywood superstars, the Indian beauty and cosmetics business is experiencing strong demand.

A larger audience may now purchase beauty items due to the growth of e-commerce platforms and the increasing popularity of men's grooming products. Additionally, brands are emphasizing natural products, customisation, and diversity. The Indian market for beauty and cosmetics is very profitable due to factors such as influencer marketing, the luxury sector, wedding and celebration seasons, and the expansion of the market.

Why Is Creating a Cosmetic Store App Necessary?

In the current era of internet commerce, buyers and sellers are moving to online marketplaces. Whether your company is small, medium-sized, or just getting started, there is an enormous need to create platforms that will enable you to expand your influence beyond regional boundaries.

For several reasons, it may be essential and advantageous to create an ecommerce app for a cosmetic business.

1.Trend in Mobile Shopping

The use of mobile devices by consumers for shopping is increasing. Customers may explore and buy cosmetics on their smartphones and tablets more easily and conveniently with the help of an app.

2.Brand recognition

A cosmetic store app boosts brand visibility, which is critical in a crowded industry. The app acts as a direct, accessible channel, reinforcing your brand and giving a continuous point of connection for customers, eventually developing awareness and trust. Having your own app might help your business become more recognizable and credible. It can function as a direct line of communication between your company and its target audience.

3.Higher Customer Engagement

Customers will always need a means to reach you. If clients have access to online chat assistance 24 hours a day, seven days a week, it leads to more customer engagement and hence makes a significant impact in your sales chart. Nowadays, people prefer texting over phoning.

4.Data Collection and Analysis

In a cosmetic store app, data collection and analysis entails acquiring user information and purchasing history. This data helps to understand customer preferences, behavior, and trends. Businesses may use analytics to make educated decisions such as refining product offers, customizing marketing campaigns, and improving the whole shopping experience to satisfy customer requests and increase sales.

5.The Competitive Advantage

To stay ahead of the competition in the market, the company must adopt a forward-thinking attitude. Many businesses have yet to embrace the Nykaa-like app, thus it is critical to develop a mobile app for your beauty & cosmetic business for future growth and to obtain a competitive advantage.

How Do Apps Like Nykaa Work?

To ensure that customers receive high-quality items, cosmetic store apps like Nykaa use an inventory-based business model. Because the sourcing is done through direct channels, this strategy assures high profit margins. Nykaa ensures that all items are validated in order to gain a high degree of client confidence and loyalty. Let's look at Nykaa's business plan to help you construct your own on-demand cosmetic store app.

1. Purchasing of a Product

Nykaa employs the direct purchase approach, in which it purchases all of its items directly from manufacturers and brands rather than through other distributors. Following a purchase, Nykaa lists the goods on their app and website.

2. Safekeeping

Nykaa's products are all housed in its warehouses. For the easy shipping of items throughout the world, the corporation developed main warehouses in Mumbai, New Delhi, and Bangalore.

3. Order placement

Customers may place orders online via the Nykaa app and website. Customers may also make offline purchases at Nykaa locations.

How Nykaa Makes Money: Money-Making Strategies

Nykaa earns money through a variety of sources. It makes money largely by selling beauty and wellness goods via its e-commerce platform and collecting a fee on each transaction. Furthermore, Nykaa provides private label items with better profits. Additionally, it executes marketing campaigns and promotions for highlighted businesses.Furthermore, advertising and sponsored content on the firm's website benefit the company. Nykaa's omnichannel presence, which includes physical storefronts, contributes to its income sources.

1.Product distribution

A cosmetic store app includes a wide selection of items. It generates the most cash by selling its items on numerous platforms. Companies sell both in-house and partner brand items. Because of the availability of a wider variety, the consumer base grows too vast.

2.Promotion and Advertisement

Banner adverts are a significant cash stream for the beauty store app. The app offers a recognized platform for many other partner companies to showcase their products and services through paid adverts. This functionality is provided by the eCommerce app development firm you select to assist businesses generate more income.

3.Sales through Multiple Channels

In addition to its online presence, Nykaa maintains physical retail shops. These physical stores generate money through in-store sales.

4. Commission Based Sales

Sales commission is a vital source of revenue for cosmetic shop applications such as Nykaa. Businesses gain ongoing revenue through commission-based sales.

Unique Selling Point (USP) of an Online Cosmetic App Like Nykaa

The first thing you should consider while developing a cosmetic store app like Nykaa is the app's USP. The unique selling proposition is critical in making your brand a household name. To compete in the massive eCommerce industry, you must engage mobile app developers that can give you a unique app.

An e-commerce cosmetic app like Nykaa's Unique Selling Proposition (USP) often comprises the following:

1.Quick Shipping

Rapid deliveries are the major selling point of a cosmetic store app, as the firms send the items to clients in a very short period of time after placing an order. There may also be alternatives for urgent delivery to satisfy the needs of the consumer.

2.Beauty Tips and Videos

When seeking beauty products, one problem that many potential consumers have is a lack of understanding about how to utilize the product. A cosmetic app like Nykaa solves this problem by providing clients with numerous blogs, beauty instructions, and videos that assist them in learning the consumption and application of cosmetic goods. Customers may buy things based on their actual needs using this feature, and the corporation can target more prospective buyers.

3.Track Your Package

A competent cosmetic app development business pays close attention to the shipment tracking. Shipping is one of the most important components of any eCommerce software since it plays a critical part in creating a good customer experience. Once an order is placed, Nykaa gives the consumer a live tracking option as well as frequent updates.

4.Wide Product Range

Cosmetic shop apps provide a diverse choice of items to their clients. There are luxury range items from overseas names, premium range products, economy range products, and home-grown products from Indian firms. The availability of items from many categories broadens the user base of an app like Nykaa since it meets the demands of millions of people worldwide.

5.Cash On Delivery

Cash on Delivery (COD) as a Unique Selling Proposition (USP) in an e-commerce app allows customers to pay for their items in cash at the time of delivery. This option caters to clients who may not have access to digital payment methods, boosting ease and hence increasing sales.

6.Simple Refunds and Returns

The most important function that the eCommerce cosmetic shop app must provide is easy refunds and returns. It is possible that the user would be dissatisfied with the goods for whatever reason; in this case, the consumer must have easy return and refund choices. It encourages customer loyalty and consumer repeat purchases. Nykaa allows for simple product returns and generates reimbursements as the merchandise arrives at its corresponding warehouse.

7.User-Friendly App Interface

A cosmetic store app should have a user-friendly app experience that allows users to browse easily. In order to optimize the user experience, the mobile app development business you employ must ensure that the app UI is user-friendly.

Features of a Cosmetic Store App

Here are some major elements that are usually seen in a cosmetic shop app:

  • Sign-in: Signing up once allows the user to easily log in and browse the app in the future.
  • Product Listings: Display a diverse assortment of cosmetics, skincare, and wellness items.
  • Search and Criteria: Allow consumers to search for goods and apply filters based on their requirements.
  • User Profiles: Allow users to build and maintain their profiles.
  • Product Specifications: Include detailed product descriptions, reviews, and ratings.
  • Wishlist: Allows users to save things for later purchasing.
  • Voice Assistant: The voice assistant feature is highly helpful in the busy schedules of working buyers. They merely provide commands to the voice assistant to obtain the merchandise.
  • Customer Service: It is a virtual assistance function that will be added by the beauty and cosmetic shop app development business to give support and assistance to clients 24 hours a day, 7 days a week for queries about items, services, and payments.
  • Gateways for Payment: The more payment methods, both online and offline, that are included into the cosmetic store app, the more likely it will be successful. Payments via linked gateways must be convenient for app users.
  • Loyalty Program: The firm hopes to promote consumer loyalty with this feature by providing additional perks such as cash back, reward points, discount coupons, and codes. It is an effective method for keeping users engaged with the app for an extended amount of time.
  • Reviews and Ratings: If users offer ratings and reviews, the on-demand cosmetic app is more likely to receive customer reaction and higher purchase. Customers are more likely to buy after reading reviews and comparing ratings. As a result, it is an essential component of the beauty store eCommerce app.
  • Search & Filter: Filters are essential when it comes to sorting and categorizing things based on one's preferences and selection from a large number of options. The on-demand eCommerce platform development business ensures that the necessary filters are provided with different categories to give purchasers a user-friendly experience.

Development Process to Build a Cosmetic Store App like Nykaa

The development process is important in determining the cost of building an app like Nykaa. Let's go over the phases involved in the on-demand app creation process in more detail:

Step 1: Conduct a Market Analysis

Before entering any market, you should hone your research abilities so that you can do possible market research and analysis. To begin, learn about your target audience, current market trends, existing market difficulties, and target market. A thorough awareness of all of these factors can help you achieve good outcomes.

Step 2: App Designing

The essence of an app is its design, which affects the target audience to use the app and stay on it for a longer period of time. Customers are looking for an app that is both extremely responsive and visually appealing. It may increase your costs, but the reaction it may bring is well worth the investment.

Step 3: App Development

To get your hands on a successful cosmetic shop eCommerce app, you must engage competent mobile app developers who are also tech-savvy. Once the app has cleared the design phase, the mobile app development team is fully responsible for the rest of the process.

4. App Evaluation/Testing

This step necessitates meticulous attention from the developers' end, as they must be confident in the app's seamless operation and all of its functions. Almost every app development process has bugs and faults that impair app performance. The software is continually tested until it is entirely error-free and ready to perform properly on the client's end.

Step 5: Deploy the App

This is the final phase in the development process because the software is now ready to be launched on the platform of choice. All you need to do now is brush up on your marketing methods in order to capture the attention of the audience and potential consumers.

Cost to Develop an App like Nykaa

The ultimate cost of establishing a cosmetic and beauty eCommerce app is determined by a number of factors. The selected platform, functionality, advanced features, hourly app development rate, and team and technology are all important considerations.The cost of the app is also determined by the amount of sophistication and geographical location. The typical cost of developing an app like Nykaa is between $25000 and $35000. If the remarkable journey and handsome earnings of Nykaa have inspired you, you may create a comparable platform for your business by designing an on-demand cosmetic store app with efficient features.

Conclusion: The Nykaa app has been a game changer in the beauty and cosmetics business. It has quickly seized the market by providing satisfying services to its clientele. The cosmetic sector is expanding and establishing roots in all conceivable areas.

As a result, now is the best moment to dive in and reap all of the benefits you can with the aid of a fully working mobile app. If you want to make a reputation for yourself in the beauty and cosmetic sector by integrating technology, employ us to create a user-friendly and amazing beauty shop mobile app. IPH Technologies offers high-quality beauty and cosmetic app development services at reasonable pricing.

Amit Verma
Software Developer

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