Identify and compare the revenue model: Google Vs Amazon.com Vs eBay

Google revenue model

More than 90% of Google yearly income is generated by advertising revenue model. Google revenue model consists of the Google AdWord, Pay per click Advertising, Google AdSense, Google Answer and Froogle.

(i)Google AdWord – Most percentage Google revenue is generated from here. It is a pay per click advertising program of google which is designed to allocate the advertisers to present advertisement to people. At the moments, people can view the related information that have been made by advertiser through the advertisement. In addition, you can easily let people know about your services and products when people visiting the web pages.


(ii) Pay per Click Advertising (PPC) – PPC enables an advertiser easily sign up and manage an account online. Beside, it is an online advertising payment model and the payment is counted based of the number of people clicking and looking your products and services.



(iii) Google AdSense – Website users can sign up this program to allow text, image, and video advertisements in their sites. Revenue is generated from per-click or per- thousand-ads-displayed basis and the ads are administered by Google.



(iv) Google Answers – It is an Internet search and research service offered for a fee by Google. Every question asked by customers, customers can offer the price for answer and researcher will answer them. The researcher was not the Google members. Prices for each question range $2 to $200. After the researcher answer the question, 25% of the payment will keep by Google and the less for the researcher.


(v) Froogle- It is one of the services in Google. It helps to get the products and services information online. Froogle is a price engine website launched by Google. Inc. It is different from the most normal price engine in which it is neither charges for any fee for listings, nor accept the payment for product show up. The company can submit their product information (via a “data feed”) and included on it. The product advertising will be displayed in Froogle in the form of an AdWords ad.




Amazon

Next to eBay, Amazon is the best online website for businesses. Amazon has “Earth’s biggest selection”, there are 16 million items has been sold on it website. It has added music, video, gifts, and greeting cards to the books it offers to 8.4 million customers. Beside, Amazon allows customers to submit reviews to the web page of each product and do rating on each product.

Other than that , Amazon generates revenue from Affiliate fees. Amazon was the first online businesses that set up an affiliate marketing program. Example of the affiliate marketing program is AStore. It allows users to create an online store in their site. The website owners will pick products from Amazon’s store and earn referral fees on the products purchased by their readers.

Amazon also generates revenue by sales revenue model and transaction fee revenue model. Amazon earns the revenue through the Amazon Marketplace by the sales. Amazon Marketplace allows buyer to buy a new or used items which sold directly by a sellers in the Amazon.com. Therefore, Amazon can charge a commission based on the sale price and transaction fee and a variable closing fee.








eBay is an online auction and shopping website which people having businesses buy and sell a broad variety goods and services worldwide. Nowadays, eBay has more than 2 million items for auction daily and 3.8 million registered members. EBay generates revenue from a number of fees such as insertion fees, promotional fees, and final value fees.

Insertion fees: When an item is published in eBay, this nonrefundable fee is charged.

Promotional fees: Fee that charged for additional listing options that help attract attention for an item such as highlighted or bold listings.

Final value fees: Commission that charged to the seller at the end of the auction.

In addition, people can bid their products and buy their products any place and anytime. Bidding on ebay’s auction-style listing is called proxy bidding. The winning bidder will pay the second-highest bid plus one bid increment amount, instead of simply the second-highest bid. However, since the bid increment amount is relatively insignificant compared to the bid size and they are not considered from a strategical standpoint. The highest amount who bid by bidders will become the winner in the auction.





Reference:
Different google, amazon and ebay

Google Revenue Model

ebay Vs Amazon