Identify and compare the revenue model for Google, Amazon.com and eBay

Revenue models indicated how an organization or E-commerce company generated sales. They are generating sales by using revenue models such as sales, transaction fees, subscription fees, advertising fees, affiliate fees and other revenue source.

Google

Google's revenue model has generated revenue from variety of revenue models. It earns profit from advertising fees such as Google AdWords. Advertising fees refer to a publisher allocate some advertisements in their website for banner in return for a fee. Google AdWords is a pay per click advertising program of Google which allows the advertisers to present advertisements to people at the instant the people who are looking for those related information.

Google has generated revenue from the revenue model by collecting affiliate fees which is Google AdSense. 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 ad are administered by Google. Pay per click basis means the advertisers have to pay to Google for how many times the users have clicked in their advertisement.

Amazon

Amazon's worldwide revenue comes from media categories such as books, music, video, Amazon's product footprint in the US has expanded into over 40 categories. Amazon is not just in the business of selling products via the Internet. Besides that, Amazon sells a variety of new and used products for which Amazon receives a commission on products sold via its Marketplace, and although commisions for these products are affiliate fees. Other than that, there are few advertisement displays in their main webpage where users browsing through some items. So that, the Amazon are generated revenue from sales and affiliate fees.

Ebay

Most of the common eBay's revenues come from online auction and shopping website in which people and businesses buy and sell goods or services worldwide. eBay generates revenue from a number of fees. The eBay’s fees may consist of insertion fees, promotional fees and final value fees. Insertion fees are charged for any item that is listed on eBay, but the fees paid is nonrefundable. Promotional fees are charged for extra listed options that attract attention for an item, while for final value fees are a commission at the end of the auction that is charged to seller.

Google, Amazon and eBay are the most successful e-commerce companies in the world. Nowadays, they are selling variety types of products and services to generate different variety revenue model. For Google's revenue models may mainly generated from the advertising fees, Amazon's revenue models are widely generated from sales, transaction fees, affiliate fees and etc whereas eBay's revenue models are generated from transaction fees.

In order to complete the transactions in these e-commerce website, customers are highy encouraged by using Paypal service instead of credit cards. This is because customer need not expose their credit card or bank account number by using Paypal service. Paypal website is shown as below: