Revenue model for Google, Amazon.com and eBay
Google, Amazon.com and eBay is a successful e-commerce websites. Now, we would like to analyze their revenue model on they generate a superior return on invested capital. In e-business, the 5 major revenue models are sales revenue model, transaction fee revenue model, advertising revenue model, subscription revenue model and affiliate revenue model.
Google AdWords
Google AdSence
Google AdSense is an ad serving program run by Google. Website owners can enroll in this program to enable text, image and, video advertisements on their sites. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google. Same as Google AdWords, Google AdSense also generating affiliate fees, but it charge based on per-click or per-thousand-ads-displayed.
Froogle
Froogle is a price engine that makes visitor easy to find information about products for sale online. Froogle is different from most other price engines in that it neither charges any fees for listings, nor accepts payment for products to show up first. Also, it makes no commission on sales. In adiition, Froogle is a engine that help visitors search the products for sale online and no charge any fees.
Get more information from Google advertising program and Google’s revenue model
Amazon.com
Amazon.com is was one of the first major companies to implement online sales and it is successfully popularizing online sales. Now, Amazon ahs became a largest online retailer selling all kinds of merchandise, including books, VHS, DVD, music CDs and MP3s, computer software, video games, electronics, apparel, furniture, food, toys, etc.
The main sources of Amazon’s revenue are sales and transaction fees. The internet users can sold or buy a items directly by a third party through Amazon Marketplace. For any item being sold, Amazon will charge a commission based on the sale price, a transaction fee, and a variable closing fee. Transaction fee is charged at fixed fee, which is $0.99 per transaction and a closing fee varies with the type of trade and item traded.
Apart from that, Amazon also derives revenue from affiliate fees by setting up an affiliate marketing program. Website owners can create an online store on their own site. However, the online store can only sell the items from Amazon store. A referral fees will be paid to the website owner and normally it is in the range of 4% to 10% of the product price.
eBay
Whereas eBay is an online auction and shopping website where people and businesses buy and sell a broad variety of goods and services worldwide. eBay generates revenue from the transaction fee revenue model. eBay provides Internet platforms of choice for global commerce, payments and communications to public and charged a transaction fees, such as insertion fees, final value fees, promotional fees and reservation fees.
Google, Amazon.com and eBay provide public a way to run e-commerce businesses. After learning these 3 successful websites, we can briefly know the revenue model for e-commerce websites. So, if we want to advertise, conduct auction or sell our product online, we might able to choose a right channel and understand their fees .
Reference Links:
http://www.organicspam.com/google_revenue_model.asphttp://www.wikinvest.com/stock/Amazon.com_%28AMZN%29
http://www.wikinvest.com/wiki/EBay_%28EBAY%29
4 comments:
1. Sales revenue model --> Company derives revenue by selling goods, information or services.
2. Transaction fee revenue model --> Company receives a commission for enabling or executing a transaction. It is based on the volume of transactions made.
3. Advertising revenue model --> Company provides a forum for advertisements and receives fees from the companies that advertise their products.
4. Subscription revenue model --> Company charges a subscription fee for the users that access to the content and services offered.
5. Affiliate revenue model --> Company receives commissions for referring customers to others web sites.
1. insertion fees --> charge when an selling item is listed or showed in eBay, this is non-refundable fee.
2. final value/closing fees --> charge at the end of action, the fees depend on the selling price of the items sold. Higher the bid price, higher the closing fees charge on seller.
3. promotional fees --> the fees that charged for additional listing options that help attract attention for an item, such as highlighted or bold listings.
4. Reservation fees --> When the product is not sold out.
Google AdSence!!? if i set the Google AdSence in my blog n hav ppl click it, i really can get the money? US? RM?
sure, for more detail info., you can go this web --> http://www.google.com/intl/en/ads/ . sure is US dollar, it is quite a good way to earn money as we still studying.
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