Revenue model for Google,Amazon.com and eBay

Google, Amazon.com and eBay are the three most well-known for its success and most outstanding company in the Virtual World. Everyone know about this three huge corporation. They are famous in different way. Google famous for its search engine, while amazon.com famous for its online shopping and EBay famous for providing bidding service for it client and buyer.

Existing of this brilliant idea and function of this Website have ease many of it user. This websites provider keep on improving and adding different kind of services to suit it client or customer, how they been repay for provided this services? Have anyone of us wondering how these websites are able to sustain in the e-commerce industry?

A website can successfully produce revenue for a company by engaging in one or many of these activities.

• Selling advertising space.
• Selling their products.
• Selling the products of other companies for a commission.
• Selling subscriptions to access an e-service or password protected content.
• Offering a pay-per-use service or online utility.
• Conducting auctions, brokering sales or otherwise facilitating transactions.

Now we would like to identify and compare the revenue model for Google, Amazon.com and eBay respectively.

The more obvious differences are in the revenue models, broadly: Advertising for Google, commissions for eBay and sales minus costs for Amazon. All these require more than a few geeks working on Ajax, it means different competencies, capabilities, supply chains, distribution, business relationships, alliances and so specializing and focus will definitely help in ensuring efficiency in operations.

Inspired of all efficiencies, effectiveness & strategy will only be driven by two things

1. User Experience

2. Communities

and that is where the differences begin to collapse and all three do begin to look like competition.

Another way to look at it would be that a user reads about researches about it on Google, while clicking on a few ads there, buys the product on Amazon, and then auctions it off on eBay.

Google


the creative Google doodle for New Year celebration 2009

Google is the most widely-used web search engine in the world. There are thousands million of internet users around the world using Google as their main search engine for searching the information their needed, Google is widely recognized as the "world's best search engine" because it is fast, accurate and easy to use. Besides that, it also provides a variety of free of charge internet services such as Blogger (web log), Google Mail (electronic mail) and etc. Google gain it revenue mainly from it advertising fees related to it internet activities. The advertising fees of Google mainly consist of Google Ad words and Google Ad sense.

Google Ad words

Google Ad Words 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.

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 on qualifying click-through. An advertiser has to pay every time his ad receives a click. The Advertisers decide the keywords relevant to their offer that should display their ad and the maximum amount they are willing to pay per click for that keyword.

Google Ad Sense

Ad Sense is an ad serving program run by Google. Website owners can enroll in this program to enable text, image and, video advertisements on their sites. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google. Ad Sense program includes Ad Sense for search and Ad Sense for content. Ad Sense for search was launched in the first quarter of 2002 and is Google’s service for distributing relevant ads from its advertisers for display with search results on the Google Network members’ sites. Ad Sense for content, launched in the first quarter of 2003, distributes ads from Google’s advertisers that are relevant to content on Google Network members’ sites. Google advertisers are required to pay Google a fee each time a user clicks on one of their ads displayed on Google Network members’ web sites.

Amazon.com

Amazon.com Inc (AMZN) is a leading global Internet company and one of the most trafficked Internet retail destinations worldwide. Amazon directly sells, or acts as a platform for the sale of, a very broad range of products, including books, music, videos, consumer electronics, clothing and household products. The majority of Amazon’s sales are products sold by Amazon, with the remaining amount from third-party sellers.

Amazon is an online shopping website with one of the largest product supplies online. It was one of the first companies to sell products deep into the long tail by housing them all in numerous warehouses and distributing products from many partner companies.

Besides sale of goods, Amazon.com also generates revenue through sale of web services, for example Amazon Simple Storage Services(S3), Amazon Elastic Compute Cloud(EC2) and etc. Amazon S3 is an online storage web service that provides unlimited storage through a simple web services interface. Amazon EC2 is a commercial web service that allows customers to rent computers on which to run their own computer applications

eBay

eBay, Inc. and its subsidiaries provide online marketplaces for the sale of goods and services, online payments services, and online communications offerings to individuals and businesses in the United States and internationally. It operates in three segments: Marketplaces, Payments, and Communications. The Marketplaces segment provides online commerce platforms that enable buyers and sellers to interact and trade with one another.

The eBay and Amazon share the same matted of doing business, just the different of this two is EBay do not have it own warehouse or inventory because eBay is just a connection between it customer to customer. It act as a middle person link to this two people to meet and one of them offer the product and sell it to another person. The major profit of eBay is mainly come from Publish Fee for the product the user post it in website, and provide secured payment system to prevent fraud. EBay also charge certain amount of commission on the success bidder or seller.