Google, Amazon.com and eBay are undoubtedly the pioneer companies in the field of E-commerce well known for their established operations, proven track record as well as excellent reputation. Although all 3 companies are highly profitable, however, it should be noted that their techniques of generating income online are distinctive as they adopt their different revenue model.
First, talking about Google, its main revenue stream comes from advertising fees. For instance, in year 2006 alone, it has generated an extraordinary amount of US$ 10.492 million through its primary advertising offerings such as Google Adwords and Adsense. Basically, Google Adwords involves displaying advertisements beside or on top of Google search results when the keywords typed in by users match with those registered by the corresponding advertiser. Subsequently, if the user clicks in, the advertising process is then completed and is charged based on a per-click basis. Meanwhile, Google Adsense is an advertising program which allows website owners to enroll to enable ads to be displayed on their sites and ultimately to earn money when the visitors click on them. Google search box could be embedded as well. For more information, please refer to Adwords and Adsense.
Next, instead of advertising, Amazon.com is America’s largest online retailer which generates income through the online selling of various lines of products. Starting from its original concept of an online bookstore, it then diversified to a wide range of businesses such as m
usic CDs and MP3s, computer software, electronic goods, apparel, kids’ products and so forth. It breaks away from the traditional break-and-mortar way of transacting at physical location and it is now the leading online shopping center earning revenue of US$19.166 million in 2008. On the other hand, through the amazon associates scheme, Amazon award referral fees to their registered affiliates which advertise Amazon products on their websites and enable them to earn 15% of affiliate fees/ commission when consumers eventually buy.
In contrast, eBay does not own any products and services on its own. Nonetheless, it functions as an online auction site which provides an electronic platform for worldwide buyers and sellers to transact a broad variety of goods and services. In other words, it merely facilitates the business dealing between all potential buyers and sellers. As a transaction is successfully concluded through its site, eBay will earn a certain amount of transaction fees. eBay offers several types of auction models such as :
1) auction-style listings (allow the seller to offer items for sale for a specified number of days)
2) fixed-price format (allows the seller to offer items for sale at a Buy It Now price. Buyers who agree to pay that price win the auction immediately without submitting a bid)
3) Dutch auctions (allow the seller to offer two or more identical items in the same auction).
First, talking about Google, its main revenue stream comes from advertising fees. For instance, in year 2006 alone, it has generated an extraordinary amount of US$ 10.492 million through its primary advertising offerings such as Google Adwords and Adsense. Basically, Google Adwords involves displaying advertisements beside or on top of Google search results when the keywords typed in by users match with those registered by the corresponding advertiser. Subsequently, if the user clicks in, the advertising process is then completed and is charged based on a per-click basis. Meanwhile, Google Adsense is an advertising program which allows website owners to enroll to enable ads to be displayed on their sites and ultimately to earn money when the visitors click on them. Google search box could be embedded as well. For more information, please refer to Adwords and Adsense.
Next, instead of advertising, Amazon.com is America’s largest online retailer which generates income through the online selling of various lines of products. Starting from its original concept of an online bookstore, it then diversified to a wide range of businesses such as m
usic CDs and MP3s, computer software, electronic goods, apparel, kids’ products and so forth. It breaks away from the traditional break-and-mortar way of transacting at physical location and it is now the leading online shopping center earning revenue of US$19.166 million in 2008. On the other hand, through the amazon associates scheme, Amazon award referral fees to their registered affiliates which advertise Amazon products on their websites and enable them to earn 15% of affiliate fees/ commission when consumers eventually buy.
In contrast, eBay does not own any products and services on its own. Nonetheless, it functions as an online auction site which provides an electronic platform for worldwide buyers and sellers to transact a broad variety of goods and services. In other words, it merely facilitates the business dealing between all potential buyers and sellers. As a transaction is successfully concluded through its site, eBay will earn a certain amount of transaction fees. eBay offers several types of auction models such as :1) auction-style listings (allow the seller to offer items for sale for a specified number of days)
2) fixed-price format (allows the seller to offer items for sale at a Buy It Now price. Buyers who agree to pay that price win the auction immediately without submitting a bid)
3) Dutch auctions (allow the seller to offer two or more identical items in the same auction).
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