A revenue model outlines how the organization or EC project will generate revenue. The examples of revenue model are:
- sales transaction fees
- subscription fees
- advertising fees
- affiliate fees and etc.
Advertising is the revenue model that drives Google’s growth as a business-services company. More than 90% of Google revenue is generated by advertising services. The principal services provide by Google include Google AdWords, Google AdSense, and Froogle(Google Product Search ).
Other than that, Google is successful in licensing its basic search technology to Yahoo!, AOL, Netscape, and many other high-profile Internet portals. This licensing activity has generated strong revenue flows for Google, matured the company’s business standing, and extended its brand to near-ubiquity.
Other than that, Google is successful in licensing its basic search technology to Yahoo!, AOL, Netscape, and many other high-profile Internet portals. This licensing activity has generated strong revenue flows for Google, matured the company’s business standing, and extended its brand to near-ubiquity.
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Amazon.com is adopting sales revenue model. Amazon was one of the first major companies which derive revenue by selling goods online. Amazon.com started as an on-line bookstore, but soon diversified to product lines of DVD, music CDs, MP3 format, computer software, video games, electronics, apparel, furniture, food, toys, etc.
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eBay is adopting subscription fees revenue and transaction fees revenue. eBay does not have inventory like Amazon.com. It only provides technology platforms and tools for e-commerce. eBay gets revenue by charging the seller on the item listed on their website and the commission charged on each completed sale transaction. PayPal (electronic payment service) was acquired by eBay in 2002 and starts earning transaction fees from PayPal.
.......................................................................................................For further information, please visit these links:
Online revenue models & business models
Meeting the Business Side of Google
Google's Revenue Model
~By SieW YinG~
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2 comments:
The post is quite well-organised.Everything is clear.Nice and sufficeint info is provided.
Besides, nice photos were uploaded.This is quite useful to attract your readers to read your blog.
Jun Nie, thanks for your precious comment.We hope that our blog will help readers to gain more knowledge about e-commerce.Yaya, you are right, the colorful photos were uploaded to attract readers to read our blog~We also try to play with the font colors to make our posts more attractive and easier to read.(^_^)
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