yOuThGenEraTion @ BAC 5

hi hi everyone, this is my second post since I have introduce to all of you a little about myself, hope after reading that all of you will understand me more. Time past very fast, I already attended my second e-commerce lecture class and I found it is quite a interest subject that can let me gain more knowledge about what e-commerce is. So, today I would like to share with all of you about the revenue models of e-commerce, which I feel for business student it is quite a interested topic to know how those website generate revenue by the services they provide. Revenue models specifically describe different techniques used in generating income from the publisher's websites. The major revenue models is following:

1. Sales Revenue Model
2. Transactions Fees Revenue Model
3. Subscription Fees Revenue Model
4. Advertising Fees Revenue Model
5. Affiliate Fees Revenue Model

The explanation of those models can be found in below this website
http://ecommerze.blogspot.com/2007/04/making-money-online-e-commerce-revenue.html

Now, I will like explain some website and what are their revenue models such as Google, Amazon, and also eBay.

1. Google
Google is an website that major in offer targeted advertising and Internet search solution and the income that earn by Google is normally is from advertising so it is adopt the Advertising Fees revenue models. Part of the revenue is earn by Google AdWords. Google AdWords is a pay per click advertising program of Google designed to allow the advertisers to present advertisements to people, and normally it is shown under "Sponsored link" on the right side of the screen or something is just above the main search result. It is an online advertising payment model in which payment is based on qualifying click-throughs. An advertiser has to pay every time his advertisement receives a click.

Besides, Google also generated revenue by Google Answer last time. I means last time It is because google no longer earn from goolge answer anymore due to the web already collapse. Froogle is a service from Google that makes it easy to find information about products for sale online, while Google answer allow customers to ask questions, offer a price for an answer for the question they ask, and researchers answer them. Google keeps 25% of the payment, and the rest send to the Researchers.

http://organicspam.com/google_revenue_model.asp

2. Amazon

It is American based multinational electronic commerce company and it started since 90s and started as a online bookstore but soon diversified to product lines of VHS, DVD, music Cd's and MP3s, computer software, video games, electronics, apparel, furniture, food, toys, etc. The revenue model of Amazon is different from the google, it is because Amazon main business activities is selling product online, so the revenue generate normally is under Sales Revenue Model and Transactions Fees Revenue Model. Amazon based on the selling price, transaction fee, and variable closing fee. will determined how much commission fees to be charge and in order to earn revenue from it.

In addition, Amazon also using Affiliates Revenue Model to generate revenue by their website. It is the first online business that set up an affiliate marketing program. allows website owners to create an online store on their site but it does not allow website owners to sell their own products directly. Website owners can pick products from Amazon’s store and earn referral fees on the products purchased by their readers. The fee structure product price ranges from 4% to 10% of the product price.

http://en.wikipedia.org/wiki/Amazon.com

3. eBay
eBay is an online auction and shopping website in which people and businesses buy and sell a broad variety goods and services worldwide. The primary sales took places by online auctions but it also includes a substantial segment of listings in the "Buy It Now" category. eBay generate revenue by Insertion Fees, Final Value Fees, Promotional Fees, plus several optional adornment fees, all based on various factors and scales.

Below is the explanation of those fees:

1. Insertion Fees – Fees charged when items listed on eBay and it is nonrefundable.

2. Promotional Fees – Fees charged when additional listing options that help attract attention for an item.

3. Final Value Fees – This is the commission charged to the seller once the auctions is end.

eBay also generate revenue by direct advertisement means it also include Advertising Fees Revenue Model. The acquisition of PayPal, whose products allow the exchange of money over the Internet, brings additional transaction based fee revenue.

http://en.wikipedia.org/wiki/Ebay