Wednesday, June 17, 2009

Identify and compare the revenue model for Google, Amazon.com and Ebay

Nice weather. I am going to introduce revenue model today. In business, revenue is income that a company received from its business activities, usually from the sale of goods and services to cusomers. Revenue models can basically consist of sales, transactions fees, subscription fees, advertising fees, affiliate fees and etc.
Google is an American public corporation, which the revenue model is focused on advertising. Google has generate services and tools for the public and business environment such as web application, advertising network, and solution for business. 99% google's revenue is derived from its advertising programs. Google AdWords is google's advertising product and main source of revenue. It is a pay per click advertising program for advertisers to present their advertisements. The Google AdWords program includes local, national, and international distribution. All AdWords advertisments are eligible in Google, AQL search, Ask.com, and Netscape. AdSense is the other advertisement application run by google. These advertisements generate revenue either a per-click or per-impression basic. There are few types of AdSense such as AdSense for feeds, AdSense for search, AdSense for mobile content, and AdSense for domains. AdSense allows the website owners to show different advertisements from different advertisers on their website and receive revenues for it. AdWords allow users to advertise their website on many other websites running AdSense. Google gains commission for providing both these services. Though many other competing programs exist on the network, Google is having good reputation.
Ebay is an online auction and shopping website that enable users buy and sell variety goods and services. Ebay offers several types of auction. Auction-style listings allow the seller to offer one or more items for sale for a specified number of days. Fixed Price Format allows the seller to offer one or more items for sale at a Buy It Now price. Buyers who agree to pay that price win the auction immediately without submitting a bid. The last type of auction is Dutch Auction. It allows the seller to offer two or more identical items in the same auction. Bidders can bid for any number from one item up to the total number offered. Ebay has established localized websites in thirty other countries. Products provided by ebay include online auction hosting, E-commerce, shopping mall, paypal, skype, StubHub, Kijiji, and other business. Ebay generates revenue from a number of fees. The U.S.-based eBay.com takes $0.10 to $4 for a basic listing.
Amazom.com is America's largest online retailer. Products that provided by Amazom.com includes Amazon Kindle, Amazon Web Services, Amazon Marketplace and etc. Amazon.com has branched into retail sales of books, musics, movies,games and digitals download. It launched its own website auction services on March 1999. Amazon Marketplace is fixed-price online marketplace that allows sellers to offer their goods. Buyers can buy new and used items sold directly through Amazon Marketplace. This revenue model is quite similar with eBay.com. This program generates big profit to Amazon.com. Amazon charges a commission rate based on the sale price, a transaction fee, and a variable closing fee.

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