The more obvious differences between Google, Ebay, and Amazon.com are in the revenue models. Broadly, advertising for Google Ads, and commissions for Ebay and sales minus costs for Amazon.com. Another way to look at it would be that a user reads about the newest, coolest widget on Yahoo, researches about it on Google, while clicking on a few ads there, buys the product on Amazon, and then auctions it off on Ebay. The major revenue models include sales revenue model, transaction fee revenue model, advertising revenue model, subscription revenue model and affiliate revenue model.
For Google, its major incomes were from advertising revenue model which includes Google AdWords, Google AdSense and so on. The Google Adwords is a pay per click advertising where advertisers published advertisement on Google’s website and is paid once online users’ clicks on it. However Google AdSense is an ad serving program. Website owners can enroll into it to enable text, image and video advertisements on their sites. These ads can generate revenue on the basis of per click or per thousand impressions. Others related programs are Google advertising professionals, Google audio ads, Google TV ads, Google website optimizer and Google site search.
Ebay generates revenue from a numbers of fees such as insertion fees (when an item listed on Ebay, this nonrefundable fee is charged), promotional fees (charge for additional listing options that help attract attention for an item, such as highlighted or bold listings), and final value fees (commission charges to the seller at the end of the auction). Furthermore, Ebay generate revenue by sales revenue model through its subsidiary, Half.com, offers fixed price, person-to-person selling of goods. It charging a 15% commission on completed sales. Additionally, a portion of Ebay’s revenue also comes from direct advertising on the site, as well as end service providers whose services increase the speed of transactions. The acquisition of PayPal, whose products allow the exchange of money over the Internet, brings additional transaction based fee revenue.
Basically for Amazon.com, it charges a commission rate based on the sale price, a transaction fee and a variable closing fee which are sales revenue model and transaction fee revenue model. Moreover, Amazon.com also generates revenue by affiliate revenue model. AStore is an Amazon.com affiliate product which website owners can use to create an online store on their site. The store doesn’t allow website owners to sell their own products directly. Website owners pick products from Amazon store and earn referral fees on the products purchased by their readers. The fee structure is currently the same as for the other affiliate links and ranges from 4% to 10% of the product price.
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