Do you know what is Revenue Model is??
Revenue Model is a description of how the organization or e-commerce companies will earn revenue, generate profits, and produce a superior return on invested capital. The FIVE (5) major revenue models are sales, transaction fees, subscription fees, advertising fees, affiliate fees, and other revenue sources.
So do you know what the revenue model is for Google, amazon.com and eBay?
Google's which is more recognized for its world's largest search engine and the mission to organize the world's information and make it universally accessible and useful. In a fraction of seconds it provides easy-to-use free service that usually returns relevant results. However, although Google is providing free services, they generate profit through advertising. Their profit from advertisement is through two type of revenue model which are “pay-per-click advertisement” and “per-thousand-ads-displayed”.
Pay-per-click advertisement is a model that charges the advertiser in Google whenever their ads are being click. Moreover the fees is set by the amount that the advertiser willing to pay. Google will accumulate the amount of click on the advertisement and only will charge the advertiser when the amount reaches a certain sum. The “per-thousand-ads-displayed" for instance will help Google to charge the advertiser for every thousand advertisement that appear on the website.
To fully put the two revenue models into action, Google with the assistance of two programmes, the AdWords and AdSense. This two programmes helps Google generates revenue by providing advertisers with the opportunity to deliver measurable, cost-effective online advertising that is relevant to the information displayed on any given page. This makes the advertising useful to you as well as to the advertiser placing it. Thousands of advertisers use Google AdWords program to promote their products and services on the web with targeted advertising and almost 90% of the Google revenue is generated from AdWords programme. In addition, thousands of web site managers take advantage of our Google AdSense program to deliver ads relevant to the content on their sites, improving their ability to generate revenue and enhancing the experience for their users.
For more information, please refers to:
Google about me
Google's Revenue Model
Amazon.com, a Fortune 500 company based in Seattle, Washington, is the global leader in e-commerce with offers everything from books and electronics to tennis rackets and diamond jewelry at even lower prices. Moreover, Amazon.com are more conveniently and offering customers with more types of products, several community features like Listmania and Wish Lists that help customers to discover new products and make informed buying decisions. Amazon generates its revenue through:
Transaction fees - $ 0.99 (per-transaction)
Commission - the rate of commission is vary on different types of merchandise
Variable closing fee - the price is vary from different type of merchandise
Amazon will helps the collect money from the buyer and commission will be taken from the money collected and other feels will be charged on the seller account. Thus, amazon is actually a third party between seller and buyer that help them meet and close transaction and amazon collect commission from and some fees.
For more information, please refers to:
About Amazon
Fees and Pricing
Ebay is the world's largest online marketplace where practically anyone can sell practically anything at any time. It's an idea that BusinessWeek once called "nothing less than a virtual, self-regulating global economy." Ebay generate their revenue through fees charged on the seller which include insertion fees and final value fees.
Ebay will charge the seller insertion fees which is also called listing fees is fees when seller list their item for sales and this fee is charged at the time of listing. In addition, this fees is not refundable even the item until the expiry of listing date is still unable to be sold. On the other hand, final value fees are also transaction fees, when the item listed successfully bid, Ebay will charged on a certain rate against the final value of the bid to the seller’s account as a commission fees. The rate for the final value fees vary according to the type of product that are list for bid.
For more information, please refers to:
About eBay
Ebay.com listing fees
Insertion Fees
Final Value Fees
The successful e-commerce company such as Google, amazon.com and Ebay are prospering in this technology and online world. Each of this company is having their own revenue model that suits the environment and business nature in order to generate profit. However, each of this revenue models might not or could not work on another company. For example, Google which is earns their through advertising are unlikely to be usable for amazon.com and Ebay which their nature of business are skewed towards transaction. For Ebay, their revenue model is different from amazon.com in terms of fees charges that they incurred on the seller. As Ebay is an online auction company, they charge the seller for listing their merchandise. On the other hand, amazon.com which is dealing with business transactions, would need to charge their seller for successful business transaction.
Revenue Model is a description of how the organization or e-commerce companies will earn revenue, generate profits, and produce a superior return on invested capital. The FIVE (5) major revenue models are sales, transaction fees, subscription fees, advertising fees, affiliate fees, and other revenue sources.
So do you know what the revenue model is for Google, amazon.com and eBay?
Google's which is more recognized for its world's largest search engine and the mission to organize the world's information and make it universally accessible and useful. In a fraction of seconds it provides easy-to-use free service that usually returns relevant results. However, although Google is providing free services, they generate profit through advertising. Their profit from advertisement is through two type of revenue model which are “pay-per-click advertisement” and “per-thousand-ads-displayed”.
Pay-per-click advertisement is a model that charges the advertiser in Google whenever their ads are being click. Moreover the fees is set by the amount that the advertiser willing to pay. Google will accumulate the amount of click on the advertisement and only will charge the advertiser when the amount reaches a certain sum. The “per-thousand-ads-displayed" for instance will help Google to charge the advertiser for every thousand advertisement that appear on the website.
To fully put the two revenue models into action, Google with the assistance of two programmes, the AdWords and AdSense. This two programmes helps Google generates revenue by providing advertisers with the opportunity to deliver measurable, cost-effective online advertising that is relevant to the information displayed on any given page. This makes the advertising useful to you as well as to the advertiser placing it. Thousands of advertisers use Google AdWords program to promote their products and services on the web with targeted advertising and almost 90% of the Google revenue is generated from AdWords programme. In addition, thousands of web site managers take advantage of our Google AdSense program to deliver ads relevant to the content on their sites, improving their ability to generate revenue and enhancing the experience for their users.
For more information, please refers to:
Google about me
Google's Revenue Model
Amazon.com, a Fortune 500 company based in Seattle, Washington, is the global leader in e-commerce with offers everything from books and electronics to tennis rackets and diamond jewelry at even lower prices. Moreover, Amazon.com are more conveniently and offering customers with more types of products, several community features like Listmania and Wish Lists that help customers to discover new products and make informed buying decisions. Amazon generates its revenue through:
Transaction fees - $ 0.99 (per-transaction)
Commission - the rate of commission is vary on different types of merchandise
Variable closing fee - the price is vary from different type of merchandise
Amazon will helps the collect money from the buyer and commission will be taken from the money collected and other feels will be charged on the seller account. Thus, amazon is actually a third party between seller and buyer that help them meet and close transaction and amazon collect commission from and some fees.
For more information, please refers to:
About Amazon
Fees and Pricing
Ebay is the world's largest online marketplace where practically anyone can sell practically anything at any time. It's an idea that BusinessWeek once called "nothing less than a virtual, self-regulating global economy." Ebay generate their revenue through fees charged on the seller which include insertion fees and final value fees.
Ebay will charge the seller insertion fees which is also called listing fees is fees when seller list their item for sales and this fee is charged at the time of listing. In addition, this fees is not refundable even the item until the expiry of listing date is still unable to be sold. On the other hand, final value fees are also transaction fees, when the item listed successfully bid, Ebay will charged on a certain rate against the final value of the bid to the seller’s account as a commission fees. The rate for the final value fees vary according to the type of product that are list for bid.
For more information, please refers to:
About eBay
Ebay.com listing fees
Insertion Fees
Final Value Fees
The successful e-commerce company such as Google, amazon.com and Ebay are prospering in this technology and online world. Each of this company is having their own revenue model that suits the environment and business nature in order to generate profit. However, each of this revenue models might not or could not work on another company. For example, Google which is earns their through advertising are unlikely to be usable for amazon.com and Ebay which their nature of business are skewed towards transaction. For Ebay, their revenue model is different from amazon.com in terms of fees charges that they incurred on the seller. As Ebay is an online auction company, they charge the seller for listing their merchandise. On the other hand, amazon.com which is dealing with business transactions, would need to charge their seller for successful business transaction.
