Identify and Compare the Revenue Model For Goole,Amazon.com and eBay

Revenue model is a description of how the company or an E-Commerce project will earn their revenue. Since E-commerce consists of doing business online or electronically, the revenue models are different from the “brick and mortar” business.

Amazon.com is an E-commerce company. They source and sell variety of products worldwide through their retail website. The products categories include books, electronics & computer, sports & outdoors, tools, auto & industrial and other. Thus, it generates revenue from sale. Beside that, it also generates revenue through co-branded credit card agreements and other marketing and promotional services which is online advertising. There are also subscription service for Amazon Prime and other membership program which the consumers have to pay for the subscription fees. Amazon.com also receives commission and per-unit fees from the sellers through Amazon Enterprise Solution which known as affiliate fees.

Google.com is focused on improving the ways people connect with the information. They maintain the largest and most comprehensive index of websites and other online content in order to make the information freely available to anyone with an internet connection. Thus, Google.com generates their revenue from advertising fee. They enable advertisers to place their display ads on their web sites through Google Adwords. Then, they receive payment from their customer base on the cost per click basis and cost per impression pricing. Google.com also generates their revenue from licensing of their web search technology and the sales and license of other products and services.

eBay is an online marketplace that provide sale of goods and services, online payments services and online communication offerings to diverse community of individuals and businesses. It provides a virtual space for an ongoing auction. Thus, it revenue model is base on transaction fees. The highest of the transaction incurred through eBay, the more revenue they will generate. This is because eBay earns commission based on either volume of the transactions or the fee per transaction conducted at the website. Beside that, it is also generate revenue from advertising.

Amazon.com, Google.com and eBay are providing different type of service in E-commerce. Thus, they are having different kind of revenue model. Amazon.com revenues is mainly generate from sale of products and services to customers while Google.com is mainly generate from advertising fees which the advertising revenue had make up to 99% of their revenue. Then, eBay is generally generates revenue from transaction fees which it had make up to 97% of their revenue.