Saturday, June 20, 2009

Revenue Model for Google,eBay and Amazon.com

REVENUE MODEL
Google, eBay and Amazon.com



The main source of GOOGLE’s REVENUE is focused on advertisement. According to the data from Google's latest 10-Q filing, the profit of Google’s advertisement is 98% of its total revenue. Google advertisement include Google Adwords, Goole Adsense and Froogle. On the other hands, eBay is an online auction and shopping website that generates revenue from insertion fees, promotional fees, final value fees and sales revenue model through its subsidiary. Amazon.com is success in online-shopping as it generates revenue mainly by selling books, electronic, videos and so on.


Google Adwords, which generate most revenue to Google, is pay per click advertising program that are design to allow the advertiser to present advertisement to people that are looking for information of what the advertiser has offer. Currently, Google is testing a new advertising program that pays site owner when a visitors clicks on an advertisement and perform a specific auction. This is known as Cost-Per-Click model.



For , it mainly focus on online auction which generates huge profit. The convenience of online auction has increased the number of bidders as the seller and bidders can participate in the auction at anywhere and anytime. Besides that, due to the potential of lower price, the broad scope of products and service available as well as the simple way to access and operate the auction process, it is not difficult to find out that there are large number of bidders and sellers.

Moreover,allow sellers to offer their goods. Buyers are permitted to review the products, comment and rate it on the rating scale from one to five stars. Besides that, Amazon is pioneer affiliate partnership marketing. It allow website owner to create the online store in their website and display Amazon books. Then Amazon pays the referral fees from the sales to website owner.

1 comment:

  1. The examples from above were already existed for many years and had good reputation in the e-commerce, so do their reputation and history are really important to assist them to generate unstoppable revenue??

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