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How Much Does it Cost to Create a Classifieds Website Like Craigslist

Online classifieds websites have replaced printed ads in many ways. They help to find a job, an apartment, a car and other things that we cannot do without in everyday life. Additionally, people actively use these platforms to buy or sell second-hand items.

You’ve probably heard of Craigslist – this classifieds site is in the top 20 most visited sites in the US.

Reading: How much to create a website like craigs

In this article you will learn how to create a website like Craigslist. We will analyze how classified ads sites work, discuss revenue models that help generate profits from this type of online platform and what features they should have. Finally, you will consider the issues you may encounter when building a classifieds platform.

What is a classifieds site?

In simple terms, classifieds sites like Craigslist are designed to be published Advertisements for goods and services. Some companies also post vacancies looking for new employees on such platforms.

Individuals receive both free and paid listings on these advertising platforms.

Ads form categories or classes – this is how classified ads work -Websites got their name. The most common sections are Real Estate, Services, Vehicles, For Sale, and Jobs.

Classifieds marketplaces fall into two groups: horizontal and vertical.

Horizontals offer diversified goods and services. The classic cases are Craigslist and Classifieds.

 The Interface of classified ads

Industries, in turn, specialize in a narrow niche. Here we can recall Indeed and Glassdoor as the most famous online career platforms.

Overview of Online Classifieds Ad Platforms Market

TechNavio, a Technology consultancy and research firm, predicts steady growth of the global online classifieds platform market at a CAGR of 8.12% over the period 2016-2020. The cost-efficiency of online ads combined with the decline of print advertising can be said to be the main driver of this trend.

At the same time, the comparatively short lifespan of online classifieds is preventing the classifieds platform market from more active growth.

Major Players

When we talk about the segment of online classifieds sites like Craigslist, we can only mention the other major players. The most successful platforms are the aforementioned Classified Ads and Craigslist, but also Oodle, Locanto and Gumtree. All of them are known for their high Alexa rating and are widely used by entrepreneurs to solve their business needs.

Why do users like Craigslist?

Craigslist is the world’s largest classifieds site . AIM Group estimated that its revenue surpassed $1 billion in 2018.

A big win isn’t Craigslist’s only accomplishment, however. This website receives 30 billion page views and 60 million web traffic every month. Impressive results, right?

So what made it more popular than Netflix or Pinterest?

Intuitive and simple interface

Craigslist is like a good old newspaper. The website loads quickly due to text-driven pages. There are no banner ads to confuse visitors. You can quickly find the items you need and run ads even without creating an account.

The Craigslist interface

Free or cheap ads

Let’s compare the costs. For example, a San Francisco recruiter needs to post a new job posting. You would have to spend $75 to post a 45-day job ad on Craigslist. Costs for a similar position on other career sites can range from $365 to $419 for 30 days.

Ad Variety

Craigslist is a medium where anyone can buy or sell anything. 60 million ads published each month are a clear example of this versatility.

How to create a website like Craigslist?

Choosing yours Niche

When you start building a website like Craigslist, you first find a specific niche. Modern vertical online marketplaces better meet the needs of customers.

The following business ideas can be of good help.

Car Classifieds

Did you know that 86% of car buyers do online research before purchasing a product or service? This is why launching a car classifieds site is such an enticing idea.

Customers can find deals on new and used cars on these online marketplaces. You can select the car you want based on criteria such as color, model, year of manufacture and more.

Autotrader, for example, offers very extensive search options.

The car search options on Autotrader

Some online marketplaces allow for a very detailed description of a car. They know potential customers feel more secure when the car listings are full.

The biggest auto classifieds are Autotrader, Cars.com and Autolist.

Classifieds for fashion products and services

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The fashion world is on the move are constantly changing. New trends come and go, and some of them become part of our daily lives. The rise of online marketplaces offering beauty products and services is one of these tendencies.

This type of classified Websites will be a real catch for people who follow the latest fashion and beauty trends.You can easily find nearby clothing, shoes, beauty services and products.

Examples of classified ads in the fashion section are fashion find and apparel search.

Classifieds for real estate ien

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Real estate is another industry that has moved to the internet You need it these days.

It takes a few minutes to list a property there. Sellers fill in the required information and upload multiple photos. Your ad will appear on the site in a few hours.

The most popular real estate classifieds are Zillow, Trulia, Redfin and Realtor.com.

Classifieds for jobs

Every company wants to hire qualified staff. At the same time, employees want to find the perfect job that suits their skills. Job postings bring these two sites together.

These sites collect job postings from job boards, career organizations, and other Internet sources. In addition, they follow industry trends and publish salary reports. For example, Glassdoor enables the anonymous display of average salaries for certain job titles. This information helps companies offer competitive wages to candidates.

 Junior Web Developer Salaries in New York provided by Glassdoor | Codica

Some of the most trusted job sites include those mentioned GlassDoor, SimplyHired, Indeed, Monster.com, and CareerBuilder.

All-in-One Classifieds

If you haven’t found a favorite niche, it would be a good idea to create a classifieds website that covers multiple niches. Horizontal classifieds sites like Craigslist are always a safe bet. They quickly lure users into searching for any type of product or service. Therefore, a niche classifieds website will remain relevant and useful for years to come.

The Functionality Required for a Classifieds Website

So you have chosen or decided to enter a particular niche, Start an online website service marketplace with multiple ad categories. Now you need to define what features will help visitors find the goods and services they need.

When building a site like Craigslist, look for the following features.

  • Registration and confirmation. Allow users to register an account or login via Facebook and Google. Verify new users by email or phone number to reduce spam and detect false identities.

  • Simple form for posting ads. Create simple templates for placing ads. Add additional columns that users may need to provide additional details about their products and services.

  • Geolocation Capability. People tend to buy or sell products nearby rather than traveling somewhere. For this reason, product listings should be categorized by their location.

  • Integrated messenger or chat. When building a site like Craigslist, tools for instant communication between buyers and sellers become essential.

  • Easy Navigation. Intuitive navigation guides your users through every step of the buyer journey, facilitating a seamless customer experience.

  • Autocomplete search. This option helps buyers create their search query.

  • Easy checkout. The checkout process as the final stage of the user journey deserves your special attention. Make sure it’s plain and simple.

  • Visible search box. The search bar is a key feature of classifieds sites like Craigslist. It should be large and properly placed.

  • Search Engine Optimization. Every ad on your platform should have correct metadata and keywords. Then Google simply indexes them.

  • Cross-platform functionality. Responsive design is a must if you want to build a website like Craigslist. Your website should work on multiple devices regardless of the operating system.

  • Multiple payment options. Online shopping can be stressful for some people. They might fear that something will go wrong with their payment and they will lose their money.It often happens when they need to use a new payment option. The ability to choose a preferred payment method makes the checkout process easier and more enjoyable.

  • Security Features. Email or IP blocking, login history and limited login attempts help protect your service.

  • Rating and Review System. When you build a site like Craigslist, don’t miss the chance to increase your platform’s credibility and help customers make an informed decision.

  • Filter and sorting functions. Allow visitors to search through thousands of products or services to find the item they want. This option leads to more conversions to e-commerce websites.

The Core Functionality of a Website Like Craigslist | Codica

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How to develop an MVP for a website like Craigslist?

Before you get into the online marketplace development process, it doesn’t hurt to check the true value of your business idea. Developing a minimum viable product will help you with that. This approach will save you a lot of time. Also, the MVP development cost will be significantly lower than the price of launching a full-fledged online marketplace.

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A Minimum Viable Product (MVP) is a website with limited functionality designed to please first-time users and get feedback from potential investors (if any). You will capture the basic needs of your audience and add new features to meet their needs.

Further reading: How to create a Minimum Viable Product (MVP)

Ask yourself, How to Build a Minimum Viable Product for Your Classifieds Website? We recommend taking a close look at which functionality provides the most value for early adopters or addresses one of their pain points.

When it comes to the MVP of a site like Craigslist, the following features deserve your special attention.

  • Log in. It allows users to create an account where they can manage personal information and track the transactions.

  • Search Filter. They help visitors find relevant ads.

  • Ad Moderation. It allows users to block inappropriate or offensive ads.

  • Communication Channels.

  • Cross-platform functionality. It’s a good idea to add online chat for instant interaction between users.

Classifieds Website Design

As part of the design For a classifieds website, the focus is on simple and uncomplicated functionality. However, understanding the key UX design principles will help evoke positive feelings and emotions when interacting with your website.

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There are several design rules that you should keep in mind in order to create a great user experience on a website offer like Craigslist.

  • Make it easier to navigate. Let visitors discover interesting things quickly. They will reward you with repeat purchases.
  • Avoid overloading customers with additional information. Focus on product photos instead of ads.
  • Create a customer journey map. It identifies the challenges your target audience may be facing and reveals their purchasing preferences.
  • Never underestimate the importance of font and its size on your website.
  • Use spaces wisely to improve readability.

Related Reading: Online Marketplace Design: Why UI/UX Matters

How to Monetize a Classifieds Website

We all know that Craigslist is a non-profit platform. It doesn’t charge regular sellers anything. It only makes money from the specific ad types like jobs, homes and cars from car dealers.

However, charging for specific ads is not the only way to monetize your online marketplace.

Below find 5 successful business models that can help you make a profit.

Recommended Ads

It’s a common revenue model for a classifieds site like Craigslist. Users have the ability to highlight their listings to promote products or services. Selected ads are placed above the regular ads or have a specific badge. These distinctions help advertisers increase brand exposure.

Subscription

If you adopt the subscription model, you charge customers a monthly fee for using your website. Keep in mind that people are usually reluctant to pay unless they can understand how your platform works or what it can do for them. A trial period will help them decide if your service is worth their money or not.

Banners/Ads

This is another popular revenue model.It assumes that space on a classifieds website is sold to other companies to place ads. You have full control over the ads shown to your visitors. The good thing about this model is that you don’t have to share your earnings with intermediaries.

Premium Membership

We’ve already discussed the possibility of charging fees for using your services. However, some online marketplaces go beyond the subscription model and offer a premium membership. It gives customers access to some additional features, such as B. Showing profiles of people who are interested in what they have to offer.

Premium Label helps advertisers differentiate their ads from others.

Let’s see what advantages users have when using Upgrade your Locanto account.

 Benefits of Locanto Account Upgrades | Codica

Pay-to-Post

There are dozens of free classifieds sites like Craigslist on the internet. Therefore, the idea of ​​charging a fee for a post seems extremely dubious. However, you may be surprised to learn that this tactic shows great results in some cases.

Implement the pay-to-post model if you already have a steady stream of customers visiting your website regularly visit. It’s also effective when you have a specific niche or category with great benefits for your customers.

The Biggest Challenges for Classifieds Website Owners

Launching an online marketplace for ads can present unique challenges.

User Acquisition

For a classifieds site like Craigslist, attracting customers and hold. Your platform should offer real value. Make sure it addresses your audience’s pain points. This is how you attract new visitors who can later become loyal customers.

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Related reading: 7 Smart Ways to Overcome the Chicken and Egg Problem for Online Marketplaces

Ad Moderation

If your online classifieds marketplace does not have ad moderation, illegal products and services, including guns, prescription drugs, alcohol or tobacco, and stolen property may be sold there. Besides, the cases of identity theft, trojan horse ads and posting multiple ads on classifieds websites are quite common. To prevent illegal activity on the platform, Craigslist has set its own terms and conditions. Now users can report ads that violate the site’s policies.

There are several ad moderation techniques. You can create a policy agreement that all users must accept. Another option is to set manual checks and scripts to check all ads automatically. This approach works best for platforms with low to medium traffic.

Customer Support

Typically, new classifieds have limited staff. Craigslist, for example, only had 28 employees at the very beginning. They didn’t have enough staff to offer customer support.

However, this can lead to serious problems for users.

Adopt unfair competitors, ban your ads. How can you deal with it when there is no person responsible for handling such issues? There’s not much you can do except repost your ad.

When providing customer support, owners of classifieds sites like Craigslist have several options.

  • The The simplest and most obvious The solution is to hire staff to handle customer inquiries and complaints.
  • Another good idea is to implement a rating and comment system that shows the reliability of the advertiser, be it seller or landlord.
  • Finally, you can hire outsourced workers. This option costs less money, but in some cases the quality of support may not be perfect.

More information: Building an online marketplace – 5 ways to keep costs down

How much does it cost to create a website like Craigslist?

Of course, if you are thinking of creating a classifieds website, you want to know the budget required.

Below we have listed the main aspects that can affect the cost of your internet classifieds platform:

  • The Approach: Out-of-Box vs. Custom Website Development;
  • The List of features you want.

Developing a custom classifieds website may seem more expensive than a ready-made solution, but building your own platform will help you avoid hidden costs. For example, you don’t have to pay for features you’ll never use, and there are no license fees regardless of how many users you have. Additionally, a custom website is always a safer option.

So, let’s answer the question of how much does it cost to build a website like Craigslist, including the functionality we discussed earlier in this article. For this purpose we use the average rate of Eastern European development agencies, which is $50/hour.

How much does it cost to build a site like Craigslist?FeaturesTime, HoursCost, $50/hour DesignUX development 64 hours $3,200 UI development 96 hours $4,800 ArchitectureProject setup 16 hours $800 DB structure 32 hours $1,600 IntegrationsPayment (Stripe or PayPal)64 hours $3,200 Key features Authorization and security 72 hours $3,600 User profiles 42 hours $2,100 Home page 84 hours $4,200 Search and filter 96 hours $4,800 Product page 42 hours $2,100 Reviews Ratings 64 hours $3,200 Cart 64 hours $3,200 Geolocation feature 64 hours $3,200 Messenger 96 hours $4,800 Easy Publish Form64 hours$3,200Category Management48 hours$2,400Notifications32 hours$1,600Shopper Panel120 hours$6,000Admin Panel164 hours8. $200Non-development activitiesProject Management64 hours$3,200Quality Assurance96 hours $4,800 code review48 hours$2,400Total >1532 hours$76,600

In summary, if you want to know how much you If it costs to build a website like Craigslist, the answer is that you need a minimum budget of $76,600. This is the approximate estimate for a custom classifieds website if you choose to build it with a development agency from Eastern Europe.

Final Thoughts

Building a classifieds website like Craigslist it is not an easy task. So many things deserve your attention. You have to find your specific niche, choose the functionality and take care of the design. In addition, let’s not forget about the minimum feasible product and monetization strategies.

Everything is much easier when you work with a trusted company that offers custom software development services.

Codica specializes in online custom Marketplaces specializes in development and we know how to build a website like Craigslist quickly and efficiently. Contact us and we’ll provide you with a classifieds website solution tailored to your specific niche that will meet all your business needs.

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