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Friday, June 13, 2008

Identify and compare the revenue model for Google, Amazon.com and eBay



Nowadays, Google, Amazon.com and eBay are most popular website or company in the internet. Many people feel curious that how those companies to generate huge income through internet. Now, let me tell you all about the five revenue model of those companies.

-Sales revenue is the income receive from sales of goods and services.
Google doesn’t have focus on the sales in their website, thus do not have sales revenue.
Amazon.com. has selling books, CDs, and videos through the website.
eBay has Marketplace where goods trading take place.
In sales revenue part, majority revenue of Amazon.com is come from this area.

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Transaction fees are the commission earned based on the volume of the transactions.
Google’s business less involve in the sales transaction.
Amazon.com collects fees only when the item sells.
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http://www.amazon.com/gp/help/customer/display.html?nodeId=1161240
eBay may earned transaction fees from each successful transaction made by the bidders or sellers.
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http://pages.ebay.com/help/sell/fees.html
In transaction fees, ebay’s transaction revenue are more than Google and Amazon.

-Subscription fees are the fixed fees paid to get some services on monthly or yearly basis.
Google: For Premier Edition of organization package in gmail, it needs to pay $50 per user account on yearly basis. Other services no need to pay the fees.
Amazon.com: Some Digital Content made available to audience are on a subscription basis, this including, but not limited to, electronic newspapers, magazines, journals and other periodicals. Amazon has the right to change subscription terms and fees from time to time.
-http://www.amazon.com/gp/help/customer/display.html?ie=UTF8&nodeId=200144530&qid=1213378239&sr=1-2
-http://www.amazon.com/gp/help/customer/display.html?ie=UTF8&nodeId=200169380&qid=1213378239&sr=1-1
eBay: eBay Stores offers three subscription tiers with features designed to boost your success through every stage of business growth.
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http://pages.ebay.com/storefronts/Subscriptions.html
Amazon and ebay’s subscription fees are more than Google.

-Advertising fees are the advertisers paid the payment to publisher because advertisers want to offer their goods or services to public and post the advertisement on publishers’ website.
Google: Most of the revenue of Google are come from advertising fees, the services provided is Google Adwords.
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https://adwords.google.com/select/Login
Amazon.com. allows merchants to upload the product catalog feeds and bid for advertising space on the Amazon.com website.
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http://www.amazon.com/Advertising/b/?node=276241011
eBay also allow advertiser to publish their advertisement on eBay’s website.
In the revenue of Google, it is about 99% come from advertising revenue.

-Affiliate fees are the commissions received by companies for referring customers’ link to others' websites and helps in promoting the products and services. These fees include cost per thousand impression (CPM), cost per click (CPC), and cost per acquisition/action (CPA).
Google: The google adsense is a program which includes AdSense for search and AdSense for content. Google affiliate revenues are generated by those activities.
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http://www.webmasterradio.fm/Internet-Marketing/Blog-Buzz/Affiliate-Policing-and-More.htm Amazon.com: Amazon associate affiliate program is a site that links to products for sale on Amazon and can fetch the site owner a 15 percent commission on every new item sold at a discounted price.
-http://affiliate-program.amazon.com/gp/associates/join
eBay
: In eBay, if someone clicks the link and wins the auction; both side can get commission.
-http://www.imgiver.com/index/internet-marketing/article/ebay-affiliate-fees/
These three companies have affiliate income.
*Those website as a reference…


2 comments:

Anonymous said...

Wow, what a great portion of income of Google is derived from advertising .

chin said...

according some statistic result, Google has 99% income from advertising.