Saturday, January 31, 2009

Revenue model for Google, Amazon.com, eBay

5. Identify and compare the revenue model for Google, Amazon.com, eBay.
Google has multiple revenue models. It earns profit from advertising fees, from functions such ad AdWords, a pay per click advertising programme which allows advertiser shows relevent or related advertisement from what users searching for. As you can see, AdWords also generates affiliates fee for Google.
Google also have another revenue model which also an advertising form call AdSense. Website owners can enroll in the program to enable text and vidoe advertisements. This has same concept as pay per click, advertisers are required to pay Google a fee for each time a user clicks on the advertisement.
eBay does not have inventory like Amazon.com. It only provides technology platforms and tools for e-commerce. ebay has various revenue model, it earns transaction fee from owning paypal, an online paying service system for users to buy items online more conveniently. ebay also gains sales from the service of listing customer’s product to be sold to other users as well as some advertisement fee. ebay generated overall revenue around $6 billion from its three primary business: auctions, payments (PayPal) and communication (Skype).
Amazon.com uses similar revenue model to ebay, they also offer items listing to be sold online. Amazon.com generate revenue from commissions from suppliers when there is a sale of product. In thier main websites, there are few advertisement displays in the page where users browsing through some items.

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