Monday, June 15, 2009

revenue model for google, ebay and amazon

These 3 companies are giants in the world of internet.

Google
Basically, it revenues come from advertising, which are Google Adwords and Google Adsense.

Google Adwords
This is a pay per click program which was introduced by Google. This advertisement is shown to the users when they are searching the internet through the Google Search Engine, then later on, the advertisement will be shown whether on the top or the right side of the search.
With the pay per click program, advertisers will have to pay everytime a user click on the advertisements. Advertisers will be able to set the keywords that the user will have to type in in order to show their advertisement and the maximum amount they will be willing to pay per click for that specific keyword.

Google Answers
Google Answers was one of Googles' revenue model launched by Google in April 2002. But it ha
d already "shut down". It was an Internet search and research service offered for a fee by Google. In this program, customers will ask a question and offers a price for the answer. Then researchers will answer the questions. Researchers will be paid, but during the process, Google will keeps 25% of the payment and sends the rest to the researchers.

http://organicspam.com/google_revenue_model.asp

eBay
For eBay, their revenue source is from Insertion Fees, Final Value Fees, Successful Listing Fees and Subscription Fees.

When you decided to sell an item on eBay, you will have to pay the basic fees, which consist of both Insertion fees and Final Value fees.

For Insertion fees, it is a fee charged to the seller for listing an item for sale. Insertion fees for all items would not be the same as it varies from the starting price of the item and the category the seller chooses to list in.

For Final Value fees, it is the amount of money that eBay charges the seller when the item was sold. The fees is based on the final price that was sold. There will be no Final Value Fees if the item did not sell off.

When the seller is selling a vehicle, they will require to pay eBay Insertion fee and Successful Listing fee.

For Successful Listing fee, it only appears when the seller is selling a motor vehicle at eBay Motors. It is a fee which calculated like Final Value fees, but sellers will not be charged if there were no bids on the item or the bids does not met the reserve price on the seller's reserve price listing.

If the user is an eBay store owner, then they would be likely to pay up the subscription fees. Subscription fees will be corresponding to the store level of the user. Store level could be categorize as basic, premium and anchor.

http://pages.ebay.com/help/sell/storefees.html
http://pages.ebay.com/HELP/SELL/fees.html#insertionhttp://pages.ebay.com/help/sell/motorfees.html
http://pages.motors.ebay.com/fees/glossary.html#tsf


Amazon.com
For amazon, their revenue comes from certain sources. One of it is when the seller is able to sell their goods. When the sellers sold their goods, Amazon will be collecting sales revenue of the product and shipping fee from the buyer. Later on they will charge the commission or known as the referral fee of 6-15% of the sales price. Other than that, a per-transaction fee of $0.99 and variable closing fee will be charged. However, if the seller is subscribing a Pro Merchant Account, they will not be charged the per-transaction fee.

In the other hand, Amazon also obtain revenue through the subscription fees. Subscription fees will only be charged towards seller who subscribe for a pro merchant account. They will need to pay up the subscription fee every month. For individual account, they will not needed to pay any subscription fees.

http://www.amazon.com/gp/help/customer/display.html?nodeId=1161240

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