![How to plan and track the budget of your shopping app [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-2_549a942f-fb87-4a93-9926-aaa6b5450856.png?v=1715856471&width=1100)
If you don’t plan and track your shopping budget properly, you're setting yourself up for financial stress.
When we developed our strategy pack for savvy shoppers, we noticed many users struggling with managing their spending and planning their purchases.
They were disorganized, had no clear understanding of their cash flow, and were often overwhelmed by unexpected expenses despite having a steady income.
Don’t let this be you—stand out and succeed in your financial goals.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your shopping habits around and set you on the path to financial success!
Get the budget tracker tailored for shopping apps
Most shopping app developers don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for shopping apps
Here is an example of a (very) detailed budget for a shopping app, to give you some inspiration
1. Platform and Infrastructure
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Server Hosting | Cloud hosting services | $1,000 | $12,000 |
| Data Storage | Storage for user data and product images | $500 | $6,000 |
| API Integrations | Third-party API services | $300 | $3,600 |
| Security | SSL certificates and security audits | $200 | $2,400 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Software Licenses | Licenses for development tools and software | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| App Developer | 2 | $5,000 | $10,000 | $120,000 |
| Backend Developer | 1 | $4,500 | $4,500 | $54,000 |
| UI/UX Designer | 1 | $4,000 | $4,000 | $48,000 |
| QA Tester | 1 | $3,500 | $3,500 | $42,000 |
| Customer Support | 3 | $3,000 | $9,000 | $108,000 |
| Marketing Manager | 1 | $4,000 | $4,000 | $48,000 |
3. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $1,000 | $12,000 |
| Social Media Management | Managing social media accounts | $800 | $9,600 |
| Influencer Partnerships | Collaborations with influencers | $1,200 | $14,400 |
| Content Creation | Blog posts, videos, graphics | $500 | $6,000 |
| Email Marketing | Email campaigns and newsletters | $300 | $3,600 |
| SEO Services | Search engine optimization | $400 | $4,800 |
4. Operational Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Payment Processing Fees | Fees for transactions | $500 | $6,000 |
| Customer Support Tools | Live chat, helpdesk software | $200 | $2,400 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Employee Training | Training programs and materials | $300 | $3,600 |
| Legal & Accounting | Legal consultations and accounting services | $400 | $4,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
Some shopping apps make 5x more profit than you!
We have studied the strategies of the best shopping apps in the world. Replicate them now!
What are the biggest expenses for a shopping app?
Watch out for these budget busters. Here are five major costs every shopping app developer needs to consider, along with some tips on how to manage them effectively.
- Development and Maintenance CostsBuilding and maintaining a shopping app can be a significant investment. You need to account for the costs of hiring skilled developers, designers, and testers. To keep these expenses in check, consider using a scalable development platform, outsourcing certain tasks, and regularly updating your app to fix bugs and add new features. Overspending can occur if you opt for overly complex features that don't add substantial value to the user experience.
- Customer SupportProviding excellent customer support is crucial, but it can be costly. This includes salaries for support staff, training, and the tools they need to assist users effectively. You can optimize these costs by implementing efficient support systems like chatbots for common queries, cross-training your team, and monitoring performance. However, be cautious not to underinvest in this area, as poor customer support can lead to negative reviews and lost users.
- Server and Hosting FeesReliable servers and hosting services are essential for a smooth user experience, but they can be expensive. To manage these costs, choose a hosting plan that scales with your user base and invest in performance optimization. Overspending often happens when you select a hosting plan that's too large or too advanced for your current needs.
- Marketing and User AcquisitionGetting users to download and use your app requires a solid marketing strategy, which can be costly. This includes online ads, social media campaigns, and influencer partnerships. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can occur if you invest in high-cost campaigns without tracking their effectiveness.
- Security and ComplianceEnsuring your app is secure and compliant with regulations is non-negotiable, but it can be pricey. This includes costs for encryption, data protection measures, and regular security audits. Optimize by investing in robust security solutions and staying updated with compliance requirements to avoid costly fines. Overspending can happen if you go for overly complex security measures that aren't necessary for your app's scale.
How to spend less with your shopping app?
Here are practical tips to help you, as a shopping app owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Product Sourcing | Partner with local suppliers for unique, high-quality products at competitive prices. |
| Development Costs | Utilize open-source platforms and tools to reduce initial development expenses. |
| Server and Hosting | Choose scalable cloud hosting solutions to manage traffic efficiently and reduce costs. |
| Marketing | Run social media campaigns for your app and collaborate with influencers for organic reach. |
| Customer Support | Implement AI chatbots to handle common queries and reduce the need for a large support team. |
| App Maintenance | Set up a regular maintenance schedule to ensure the app runs smoothly and avoid costly fixes. |
| Office Space | Consider remote work options to reduce the need for large office spaces. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers opting for minimal packaging. |
| Payment Processing | Choose a payment gateway with low transaction fees and seamless integration. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep your team updated. |
| Inventory Management | Use inventory management software to track stock levels and reduce overstocking. |
| Technology | Invest in multi-functional software that integrates various aspects of your business, from sales to customer service. |
| Advertising | Utilize targeted online ads and SEO strategies to reach your audience effectively. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Shipping | Negotiate rates with multiple carriers to find the most cost-effective shipping solutions. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Data Security | Invest in robust cybersecurity measures to protect customer data and avoid potential breaches. |
| Customer Retention | Implement a loyalty program to encourage repeat purchases and build customer loyalty. |
| Market Research | Use free or low-cost market research tools to stay informed about industry trends and customer preferences. |
| Employee Benefits | Offer flexible benefits packages that cater to the diverse needs of your team. |
Copy the tactics of the best shopping apps in the world!
There are shopping apps that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a shopping app
Yes, some expenses for your shopping app are just unnecessary. They don't contribute to increasing revenue or improving user experience.
| App Expense | Reason It's Useless |
|---|---|
| Overly Complex UI | A complicated user interface can frustrate users and drive them away, rather than attracting more. |
| Premium Stock Images | Unless you are a high-end brand, most users are satisfied with high-quality free images. |
| Excessive Product Categories | Too many categories can overwhelm users and increase management costs. |
| High-End Servers | Top-of-the-line servers are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your app. |
| Multiple App Themes | Having various themes increases development costs without adding significant value to the user experience. |
| Excessive Customer Support Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for analytics or other services often go unnoticed by users. |
| Exclusive Product Lines | Using rare products can inflate costs and complicate supply chains. |
| Costly App Design | High-end design is not always appreciated by users and can be a significant expense. |
| Custom Printed Packaging | Personalized packaging is a minor detail that most users overlook, and it can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Hosting Services | Most users are content with reliable mid-range hosting, making expensive hosting unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent App Updates | Constantly updating the app can be costly and disrupt user experience. |
| Expensive Promotional Campaigns | Elaborate campaigns are often ignored by users and add to the cost. |
| High-End App Features | Luxury features are prone to bugs and expensive to maintain, often going unnoticed by users. |
| Excessive Team Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive App Redesigns | Frequently redesigning the app is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Development Tools | Specialized development tools are often unnecessary and add to costs without a proportional benefit. |
Stop working with a tight budget for your shopping app!
Managing a budget for a shopping app when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw your entire plan off course.
This constant pressure makes it nearly impossible to invest in growth initiatives, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more flexibility and more resources to invest back into your app.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of shopping apps just like yours. Get them now!
Make your shopping app more profitable
We have studied the strategies of the best shopping apps in the world. All their tactics are explained in our pack!
