Nowadays e-commerce is the most popular business trend, where the products and services sells through online. Therefore, billions of websites on the internet and about 30 million domain names are registered. But how many of the websites are making profit? In the decade, Google, eBay and Amazon.com have become huge big e-commerce merchants and leading the e-market. How do they make the profit?
There are 5 types of revenue model was established in generating income from website.
1) Sales
2) Transaction fees
3) Advertisement fees
4) Subscription fees
5) Affiliate fees
Google
The main source of Google’s revenue is from advertising. For the 2006 fiscal year, the company reported US$10.492billion in total advertising revenues and only US$112million in licensing and other revenues.
Google AdWords – This is a pay per click advertising program. It allows the advertiser to present advertisements to people at the instant the people are looking for information related to what the advertiser offered. 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.
Google AdSense - It is also a form of advertising. Website owners can enroll the program to enable texts and vidoes' advertisements. This has same concept as pay per click. Advertisers are required to pay Google as each time a user clicks on the advertisement.
eBay
There are 5 types of revenue model was established in generating income from website.
1) Sales
2) Transaction fees
3) Advertisement fees
4) Subscription fees
5) Affiliate fees
The main source of Google’s revenue is from advertising. For the 2006 fiscal year, the company reported US$10.492billion in total advertising revenues and only US$112million in licensing and other revenues.
Google AdWords – This is a pay per click advertising program. It allows the advertiser to present advertisements to people at the instant the people are looking for information related to what the advertiser offered. 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.
Google AdSense - It is also a form of advertising. Website owners can enroll the program to enable texts and vidoes' advertisements. This has same concept as pay per click. Advertisers are required to pay Google as each time a user clicks on the advertisement.
eBay
eBay popularized the auction format listing. Like most auction companies, eBay allows people to post somethings in the website and sell them to others who are interested. It merely facilitates the process of listing and displaying goods, bidding on items, and paying for them. It acts as a marketplace for individuals and businesses that use the site to auction off goods and services. In other words, eBay generates its revenue through transaction fees by using online auction business model.eBay offers several types of auctions such as below:
1. Auction-style
2. Fixed Price format
3. Dutch Auctions
Amazon.com
Amazon.com generates their income through sales of goods. People can buy mp3, books, notebook, camera and other goods which offered by Amazon.com. Besides that, buyers can also get the product's specification, details of the product, ratings of the product or even the feedback of other buyers in the website in order to make the right choice. Amazon.com also generates revenues by Affiliate revenue model. Amazon is one of the first online businesses to set up an affiliate marketing program. AStore is an Amazon.com affiliate product which website's owners can use to create an online store on their site. The store does not allowed website's owners to sell their own products directly. Website owners have to 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 the other affiliate links and ranges from 4% to 10% of the product price.
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