Identify and compare the revenue model for Google, Amazon.com and eBay
Revenue model of:
- Advertising revenue model
ØGoogle AdWords
A pay per click advertising program designed to allow the advertisers to place their advertisements to people who looking for information about the advertiser offer. When a user searches Google's search engine, ads for relevant words are shown as "sponsored link" on the right side of the screen, and sometimes above the main search results.
ØGoogle AdSense
Advertisers can enroll in this program to enable text, image and, video advertisements on Google websites. Revenue is generated on a per-click or per-thousand-ads-displayed basis. Advertisers are required to pay Google a fee each time a user clicks their ads displayed on Google’s web sites.
related link: http://www.organicspam.com/google_revenue_model.asp
- Transaction fee Revenues model
Like others auction companies, eBay does not actually sell goods that it owns itself. It just provides a space for those people who want to sell or buy goods through online auction. When the buyers agree for the price of the goods seller offer, and buyer pay the money to the seller, the transaction is completed. EBay will get a small percentage commission as transaction fees.
Amazon generates revenue primarily by selling books, videos, electronics, and kitchen equipment through internet.
- Sales revenue model and transaction fee revenue model.
They allow sellers to offer their goods alongside Amazon’s offerings. Buyers can buy new or used items sold directly by a third party through Amazon.com. Amazon charges a commission rate based on the sale price, a transaction fee, and a variable closing fee.
- Affiliate revenue model.
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.
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