This week my topic is “identify and compare the revenue model for Google, Amazon.com and Ebay. Before I start my topic, I would like to explain what revenue model is. Revenue model is the different method that used in generating income from the publisher website. Types of revenue model include:
1) Sales- sales of goods, merchandise information and services provided in the publisher’s website
2) Transaction fees- publishers earned the commission based on the volume of the transaction or fee per transaction conducted in the website.
3) Advertisement fees- publisher earned the advertisement fees through allocate some advertisements spaces in their website for other companies to place their banners or advertisements.
4) Subscription fees- customers would have to pay a fixed amount of fee either monthly or yearly when they are subscribing to contents and services offered by the website.
5) Affiliate fees- companies receive commission for referring customers to other website. This technique become more popular nowadays especially for blogger.
Google generated the income through earning the advertisement fees. One of the main revenue model used by the google is Google AdWords. Google AdWords is a pay per click advertising that designed to allow the advertiser present their advertisements to the people at the instant the people are looking for the information related to what the advertiser has to offer. The relevant words of the advertisements are shown as “sponsored link” on the right side of the screen or above the main search result when the users using google search engine. Google generated most of their income through Google AdWords. Other revenue model used by google include Google AdSense, Google Answer, Froogle and etc.
Amazon.com generates their income through sales of goods. People can buy the mp3, books, notebook, camera and others goods which offer by Amazon.com. Besides that, buyers also can get the product specification, detail of the product, rating of the product or even the feedback of others buyers in the website in order to make a right choice. Amazon.com also generates revenue by Affiliate revenue model. Amazon was one of the first online businesses to set up an affiliate marketing program. AStore is an Amazon.com affiliate product which website owners can use to create an online store on their site. The store does not allow website owners to sell their own products directly. Website owners pick products from Amazon’s store and earn referral fees on the products purchased by their readers. The fee structure is currently the same as for the other affiliate links and ranges from 4% to 10% of the product price.
eBay is an online auction and shopping website in which people and businesses sell or buy goods and services worldwide. eBay generate the income from earned the insertion fees and final value fees. Insertion fee is the amount of money eBay charges to the seller for listing an item for sale. Final value fees are the fees that charged to the sellers when the item is sold, ends with a winning bid, or is purchased. eBay also generated the advertisements fees which allow the advertiser promote their advertisement at eBay.
Comparison between Google, Amazon.com and eBay
Different companies using different revenue modes to generate income. Google is the most famous search engine nowadays. There are many people access to google per day. The advertisement method is the most suitable for google because the advertisement will shown at the screen while people searching some information. Google did not sales the goods at the website. Whereas, amazon.com generated the income through sale of goods at the website. People can buy many things at amazon.com through the internet. It’s give a lot of convenience to people and enhance the speed of e-commerce. eBay earned many insertion fees and final value fees which google and amazon.com did not make it. This is because eBay provide a marketplace that enable the seller put their product to the website for bid.
1) Sales- sales of goods, merchandise information and services provided in the publisher’s website
2) Transaction fees- publishers earned the commission based on the volume of the transaction or fee per transaction conducted in the website.
3) Advertisement fees- publisher earned the advertisement fees through allocate some advertisements spaces in their website for other companies to place their banners or advertisements.
4) Subscription fees- customers would have to pay a fixed amount of fee either monthly or yearly when they are subscribing to contents and services offered by the website.
5) Affiliate fees- companies receive commission for referring customers to other website. This technique become more popular nowadays especially for blogger.
Google generated the income through earning the advertisement fees. One of the main revenue model used by the google is Google AdWords. Google AdWords is a pay per click advertising that designed to allow the advertiser present their advertisements to the people at the instant the people are looking for the information related to what the advertiser has to offer. The relevant words of the advertisements are shown as “sponsored link” on the right side of the screen or above the main search result when the users using google search engine. Google generated most of their income through Google AdWords. Other revenue model used by google include Google AdSense, Google Answer, Froogle and etc.
Amazon.com generates their income through sales of goods. People can buy the mp3, books, notebook, camera and others goods which offer by Amazon.com. Besides that, buyers also can get the product specification, detail of the product, rating of the product or even the feedback of others buyers in the website in order to make a right choice. Amazon.com also generates revenue by Affiliate revenue model. Amazon was one of the first online businesses to set up an affiliate marketing program. AStore is an Amazon.com affiliate product which website owners can use to create an online store on their site. The store does not allow website owners to sell their own products directly. Website owners pick products from Amazon’s store and earn referral fees on the products purchased by their readers. The fee structure is currently the same as for the other affiliate links and ranges from 4% to 10% of the product price.
eBay is an online auction and shopping website in which people and businesses sell or buy goods and services worldwide. eBay generate the income from earned the insertion fees and final value fees. Insertion fee is the amount of money eBay charges to the seller for listing an item for sale. Final value fees are the fees that charged to the sellers when the item is sold, ends with a winning bid, or is purchased. eBay also generated the advertisements fees which allow the advertiser promote their advertisement at eBay.
Comparison between Google, Amazon.com and eBay
Different companies using different revenue modes to generate income. Google is the most famous search engine nowadays. There are many people access to google per day. The advertisement method is the most suitable for google because the advertisement will shown at the screen while people searching some information. Google did not sales the goods at the website. Whereas, amazon.com generated the income through sale of goods at the website. People can buy many things at amazon.com through the internet. It’s give a lot of convenience to people and enhance the speed of e-commerce. eBay earned many insertion fees and final value fees which google and amazon.com did not make it. This is because eBay provide a marketplace that enable the seller put their product to the website for bid.
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