Wednesday, June 18, 2008

The Revenue Model of Google, Amazon.con, eBay

Today I want to identify the E-commerce’s revenue model of three greatest E-commerce website: Google, Amazon.com, and eBay, the way how they making profit.


Let’s discuss the Amazon.com first, actually it is an online book shop, you may find any book, music, DVD and Videos you want here and as you need you also can make an order. The main model they making revenue which is selling books, beside sales they also earn revenue from advertisement which include Product Ads and Online Display Advertising.

The second website is Google, which is the successful online search engine in the world. They provide fastest and convenient search service for everyone, but they did not charge any fees on searching, did you ever wonder how they making profit? Actually they earn profit from advertisement and licensing, the analysis of Google said that the
advertisement brings 99% income for Google, licensing only 1%, which mean most income of Google is generated from advertisement.

Lastly, eBay—eBay is the world online market place for all buyer and seller. You may trade within local or also can trade to international. Actually eBay conduct the transaction in auction basis, they earned the transaction fee (commission) from each successful transaction made by the bidders or sellers.

These three companies making huge profit every year, but they major business activities is conduct online, therefore we can see that
E-commerce has great potential market

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