Logistics App Development Cost: Know Everything in Detail

28 April 2023 Writer: Lera Grechanik 663 views

The supply chain and transportation industry faces significant losses of over $15 billion annually due to downtime and operational malfunctions, leading to freight loss and increased prices. This has been a major challenge for large-scale enterprises and private carriers, causing some logistics businesses to withdraw from the industry. 

However, the introduction of logistics applications has revolutionized the industry by bringing transparency and reliability to the supply chain process. This has resulted in a surge of businesses adopting on-demand logistics app development, leading to a market size of $25.22 billion. 

The statistics show that this branch of the market is on the rise. However, the statistics may not be enough to make the decision regarding developing an app. In this article, we cover the topics that are important for decision-making, such as logistics, mobile app development cost, business model to offset logistics application development cost, and what to expect from logistics app development in the future.

How Much Does the Logistics App Development Cost

The ultimate cost of developing a logistics app depends on various factors related to mobile app development services. These factors can include the amount of time spent on development, the complexity of the app, the inclusion of additional features, and more.

When considering the logistics app development cost, it's essential to keep in mind the app's complexity. A simple app with basic features may cost anywhere from $30,000 to $120,000, while a more medium-complexity app could cost between $120,000 to $200,000. The figures indicating custom logistics app development cost can vary depending on the specific needs and requirements of the app.

However, the final cost of logistics mobile app development is not solely determined by complexity. Other factors, such as logistics mobile app design and features, also come into play. MVP development services will cost somewhat less due to the number of features, app complexity, and other factors. With a full-fledged complex app, the cost could be as high as you wish, depending on the features included and the amount of time spent on development.

It's essential to consider all contributing factors in detail when determining the final cost of logistics mobile app development, as this cost can have a significant impact on the success of your business. By taking the time to carefully evaluate your app's needs and requirements, you can make a more informed decision regarding the final cost and ensure that your logistics app is both practical and efficient.

How Does a Logistics Mobile App Generate Revenue

Before making an investment in a new venture, it is natural to want to be certain that the investment will yield returns in the long run. With this in mind, it is important to consider the various ways in which an app can generate revenue to offset the initial cost of a logistics mobile app.

In-App Purchases

The app could be designed to include in-app purchases, such as the ability to track shipments or expedite deliveries for a fee. Such features would provide an additional source of revenue for the business and help to pay off the cost of a logistics mobile application.

Sponsored Ads

Another strategy to consider would be to leverage the app to attract advertisers or sponsors. If the app is widely used and has a large user base, it may be possible to secure advertising revenues from companies looking to target its user demographic. In this case, the app will remain free to use but still bring revenue that will cover the cost to build a logistics app.

However, the ads are tricky. Before going for such a business model, we would recommend thinking through the non-annoying ways to display them within the app.

Alternatively, the app could be sponsored by a logistics company or other relevant business, which would provide a source of funding for the app's development and maintenance.

Freemium

One strategy for monetizing your app is to offer a basic set of features for free and a more advanced set of features for a certain price. This approach allows users to test out the app before committing to a purchase, which can increase the likelihood of them making a purchase. Additionally, it enables you to provide essential functionality at no cost, which can attract a larger user base and increase your app's visibility.

Paid App

When it comes to monetizing your logistics app, there are various strategies you can consider, and charging for app downloads is one of them. However, this approach is typically only practical if your app has a strong Unique Selling Proposition (USP) that sets it apart from competitors. 

A USP is the unique value or benefits that your app offers that other logistics apps do not. For example, your app may provide more accurate and up-to-date information on shipments, or it may offer faster delivery times. If your app can effectively communicate its USP and demonstrate its value to potential users, they may be willing to pay for the download. Otherwise, the selected business model won’t work, and the cost to create a logistics app will be a waste of funds. 

In summary, while the initial cost to build a logistics application may seem daunting, it is important to consider the various strategies that can be employed to generate revenue. By designing the app with revenue generation in mind, it may be possible to create a profitable and sustainable business model for the long term and offset the cost to create a logistics mobile app.

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Future of Logistics App Development

Before making a decision on whether to invest in a logistics app, be it fleet management system development or any other type, it is important to consider the future of the industry. According to a recent study, the global digital logistics market is expected to experience remarkable growth and reach a staggering $77.62 billion by 2030, with a CAGR of 17.54% during the forecast period of 2021-2030.

The current statistics and predictions indicate that the future of on-demand logistics app development is promising, which is a good sign. The introduction of mobile app development in the logistics industry has streamlined processes, making them easier to manage. However, there is still more room for improvement. That's where AI and other modern technologies come in. These technologies are currently a significant factor in the industry and are reflected in the latest technology trends.

Looking forward, we can expect the emergence of AI-powered logistics applications that will further improve logistics and warehouse management, as well as transportation. This will bring forth a new era in the logistics industry, where businesses can benefit from the use of intelligent systems that can learn and adapt to changing circumstances. IoT is another next-generation technology that will have a disruptive impact on the logistics domain. The integration of these modern technologies will undoubtedly revolutionize the logistics industry and improve operational efficiency, leading to better outcomes.

Furthermore, the logistics industry is becoming more complex, with more players entering the market every day. This can lead to increased competition, which can be both a threat and an opportunity. Businesses that can differentiate themselves from the competition by providing better services and more value will be able to thrive in this environment. This is why it is important to invest in the latest technologies and stay ahead of the curve. By doing so, businesses can remain competitive and continue to provide value to their customers.

Get Your Estimate for an On-Demand Logistics Application Development Cost

At Celadonsoft, we understand that cost is a major concern for many of our clients. That's why we offer a free estimate for our on-demand logistics application development services. Our team will work with you to understand your requirements and provide you with an accurate estimate of the development costs.

In addition, our software development team will consult you on the best ways to make your idea work for you. 

After that, you may trust your project to Celadonsoft, and we will make it to success through technology. Our software development services also include ongoing maintenance and support to ensure that your application continues to perform at its best. We are committed to providing our clients with the highest level of service and support, and we will work tirelessly to ensure your complete satisfaction.

So why wait? Contact Celadonsoft to get your estimate for on-demand logistics application development cost. Take the first step towards creating the software solution you need to succeed in today's competitive market.

 

Areas of responsibility - brand and growth marketing. Strongly believes that software development is an art and marketing is not just about sales but about sharing your passion. Her educational background in the field of business and marketing allows her to create expert content and help others to grow and expand knowledge.

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FAQ
01.
What's in store for logistics application development in the long term?
Alex
Alex
CEO

It’s totally understandable that considering the future of the logistics industry is crucial before investing in an app. The digital logistics market is expected to grow to $77.62 billion by 2030 with a CAGR of 17.54%. AI and other modern technologies are currently significant factors in the industry, with the emergence of AI-powered logistics apps and IoT technology. This will revolutionize the logistics industry and improve operational efficiency. As competition increases, investing in the latest technologies will help businesses stay competitive and provide more value to their customers.

02.
How can logistics offset the logistics app development cost?
Lena
Lena
Project Manager

The app will generate revenue if a proper business model is selected and implemented. When it comes to logistics app development, there are several ways how it can be monetized:

  • In-app purchases;
  • Ads;
  • Freemium;
  • Paid apps.

For your app, you may choose one or combine several after researching your audience and consulting with your development team.

 

03.
How much does a logistics app cost?
Nik
Nik
Head of Sales

The cost of developing a logistics app depends on various factors, including development time, complexity, developer’s hourly rate, and additional features. A simple app can cost $30,000 to $120,000, while a medium-complexity app can cost up to $200,000. Design and features also affect the final cost, and MVP development services cost less. It's important to evaluate all factors when determining the cost to ensure a practical and efficient logistics app.

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