Thursday, June 12, 2008

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

The revenue models of Google are targeted advertising solutions and global Internet search solutions. Its provide the service and features: Google AdWords is a pay per click 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. 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. Other of service is Pay per Click Advertising: Pay-Per-Click (PPC) is the best way to send immediate, targeted traffic to your website. It is an online advertising payment model in which payment is based onqualifying click-throughs. An advertiser has to pay every time his ad receives a click.

E-bay is an online auction and shopping Web site in which people and businesses buy and sell goods and services worldwide. The revenue model of E-bay is use transaction revenues which is match-maker (transaction fee). The portal revenues are based on the net revenue or the commission it receives from the product's sale. Under this approach, the portal extracts a toll from each transaction. In some cases, the fee is levied to both the supplier and the buyer, and is typically .05-3.0 percent. The complexity of the transaction typically determines the fee.
www.ebay.com

Amazon is an American electronic commerce (e-commerce) company which diversified to product lines of VHS, DVD, music CDs, MP3 format, computer software, video games, electronics, apparel, furniture, food and toys. The revenue model of Amazon is transaction revenues which is distribution (margin). In the distributor model, the intermediary takes ownership of the product. As a result, it realizes the total revenues it gets off the product's sale. For example, a supplier purchases a product for $1.00 and resells it for $2.00. The $1.00 is the supplier's margin before costs. Once cost is factored in, however, the gross margin can be substantially less. www.amazon.com

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