MY E-COMMERCE WORLD

This is the universe space for us to post our e-commerce topics.

A Revenue Model lays-out the process by which a company actually makes money by specifying how it is going to charge for the services provided. I am going to share with u all about the revenue model for three of the world wide successful website which are Google, eBay and Amazon.

Google Revenue Model

Google is adopting advertising fees revenue model which included Google AdWord, Google AdSense, Froogle.

Google AdWord is a pay per click advertising program in which the advertising fees is based on the number of times the advertising click-through. The advertisement will display in the web page when someone search for the relevant keywords about the advertisement. The advertiser will then need to pay fees every time his advertisements receive a click.

Google AdSense is an advertisement serving program which enables website owners to advertise text, image and video on their site. There are two parts in Google AdSense which are AdSense for search and Adsense for content. In Adsense for search, Google will distribute advertiser’s advertising in relevant search results. For AdSense for content, Google will display advertising in the relevant content on Google Network members’ site. Advertisers then need to pay advertising fees to Google each time a user click on the advertising.

Froogle is a Google’s service whereby a user can use this to find information about a product for sale online. Froogle did not charge any fees for listing of commission on sales like eBay. Advertising spaces are available to purchase in Froogle engine for advertisers to display his advertisement in form of AdWord advertisement.

Google is now testing on a new revenue model which called as Cost-Per-Action. This new advertising program pays site owners based on a Cost-per-click model. The site owner will get pays when a user click on the advertisement and perform an action.

Amazon Revenue Model

Generally, Amazon generates its revenue through selling products by internet which is sales revenue model and transaction fees revenue model. Amazon began its business as an online bookstore. As for now, Amazon has expended its business into retail sales of music CD, DVD, movies and other customer product.

Amazon Marketplace is a fixed price online market place that allow user to sell new or used product to each other through Amazon.com. Amazon will then charge commission and transaction fees on it.

Amazon also adopting revenue model which is Affiliates revenue model. Amazon allow website owner to create Amazon’s link in their site. The user to the website and access Amazon’s catalog directly and purchase through Amazon.

eBay Revenue Model

eBay is an online auction and shopping website which served as a intermediary for buyer and seller to gather and selling and purchasing products. User of eBay will be charged on :

Insertion fee which is charge when a seller list his product in eBay

Promotion fee which is charged when the seller put additional listing option that help to promote his product.

Final Value fee is the commission charged when a sales transaction have been successfully made between sellers and buyers.

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