Revenue Model outlines how the organization or the e-commerce project will earn revenue, produce profit, generate a superior return on the capital being invested. The major revenue models are :
Sales Revenue Model --> Companies generate revenue from selling goods and services over the Web sites.
Transaction Fees Revenue Model --> Companies receives a commission based on the volume of transactions made.
Subscription Fees Revenue Model --> Customers pay a fixed amount, usually monthly, to get some type of services.
Advertising Fees Revenue Model --> Companies charge others for allowing them to place a banner on their sites.
Affiliate Fees Revenue Model --> Companies receive commissions for referring customers to others' Web sites.
Google
The first impression when people heard about "google" is that there are unlimited information available in the Web whereby can help most of us to resolve our issues. Why is it "googling" is so popular nowadays? It is not only a way of communications, but also a way of doing businesses. Due to the popularity and necessity of Google, it has become one of the most profitable organization in the world. Almost 90 percents of Google's revenue comes from the advertising. There are 3 mains products or services provided by Google are Google AdWords, Google AdSence and Froogle.
Google AdWords is a pay per click(ppc) advertising program of Google designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer. Most of the revenue of Google comes from Google AdWords. The available of Google AdWords benefits the users. For example, it help to targeted traffic and reach easily if you can think of a phrase related to your keyword. Furthermore, it is also easy to use, flexible, and effective with the features available. Therefore, Google AdWords is actually generating affiliate fees for Google.
Sales Revenue Model --> Companies generate revenue from selling goods and services over the Web sites.
Transaction Fees Revenue Model --> Companies receives a commission based on the volume of transactions made.
Subscription Fees Revenue Model --> Customers pay a fixed amount, usually monthly, to get some type of services.
Advertising Fees Revenue Model --> Companies charge others for allowing them to place a banner on their sites.
Affiliate Fees Revenue Model --> Companies receive commissions for referring customers to others' Web sites.
The first impression when people heard about "google" is that there are unlimited information available in the Web whereby can help most of us to resolve our issues. Why is it "googling" is so popular nowadays? It is not only a way of communications, but also a way of doing businesses. Due to the popularity and necessity of Google, it has become one of the most profitable organization in the world. Almost 90 percents of Google's revenue comes from the advertising. There are 3 mains products or services provided by Google are Google AdWords, Google AdSence and Froogle.
Google AdWords is a pay per click(ppc) advertising program of Google designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer. Most of the revenue of Google comes from Google AdWords. The available of Google AdWords benefits the users. For example, it help to targeted traffic and reach easily if you can think of a phrase related to your keyword. Furthermore, it is also easy to use, flexible, and effective with the features available. Therefore, Google AdWords is actually generating affiliate fees for Google.
Google AdSense is an ad serving program run by Google. Website owners can enroll in this program to enable text, image and, video advertisements on their sites. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google.
Froogle is a service from Google that makes it easy to find information about products for sale online. Froogle is a price engine website where it is different from most other price engines in that it neither charges any fees for listings, nor accepts payment for products to show up first. Also, it makes no commission on sales. Amazon.com
Amazon is one of the first major companies to sell goods through Internet. Amazon generates revenue primarily by selling books, videos, electronics, and kitchen equipment on domestic and international Web sites, such as Amazon Marketplace.
On the other hand, unlike Google, the main activity for Amazon is online sales. Interested buyer can buy the new or used products from the seller through Amazon.com in Amazon Marketplace. Commission rate will be charged by Amazon based on the selling price, transaction fee, and variable closing fee. Therefore, sales and transaction fee can be considered as the main revenue model for Amazon.
Affiliate revenue model is another model that generates revenue for Amazon. An affiliate marketing program has been set up by Amazon. Website owner is able to create an online store in their own site through an Amazon affiliate product which is known as store. A referral fees will be paid to the website owner and normally it is in the range from 4% to 10% of the product price.
eBay
eBay is also providing online auction and shopping services, however, it does not have inventory like Amazon.com. It only provides technology platforms and tools for e-commerce. Insertion fees, promotional fees, final value fees, and reservation fees model revenues are the revenue generated by Ebay.
eBay
eBay is also providing online auction and shopping services, however, it does not have inventory like Amazon.com. It only provides technology platforms and tools for e-commerce. Insertion fees, promotional fees, final value fees, and reservation fees model revenues are the revenue generated by Ebay.
Insertion fees --> When an item is listed or showed in Ebay and this is non-refundable fee.
Promotional fees --> When additional listing options such as highlighted and bold listings are edited.
Final value fees --> It is a commission charged to the seller at the end of the auction.
Reservation fees --> When the product is not sold out.
References:
Amazon.com
Ebay
1 comments:
i didn't know the existence of Froogle. i only know bout GOOGLE. really a shocked. never know about there is Froogle before even though i been using internet for more than 10 years. impressive and detailed work..
Post a Comment