Thursday, June 12, 2008

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

The revenue model for Google is advertising revenue mod Portals like Google have led the way in refining the advertising revenue model. The beauty of these revenue models is that from the advertiser’s perspective, they are far more targeted. Google are the company that provides a forum advertisement and receive fees from advertiser.

The sales revenue model is the company derives revenue by selling goods, information, or services to customers. For example, Amazon.com. Amazon.com is the electronic market place that sells products through internet. The revenue for Amazon.com is through their sales. Their Net income increased 30% to $143 million in the first quarter of 2008.

The Transaction fee revenue model is that company receives a fee for enabling or executing a transaction. For example eBays.com ( people can make online bids for items ).

Today, eBay, the world's largest online marketplace - where practically anyone can sell practically anything at any time. It's an idea that BusinessWeek once called "nothing less than a virtual, self-regulating global economy."

With a presence in 39 markets, including the U.S., and approximately 84 million active users worldwide, eBay has changed the face of Internet commerce. In 2007, the total value of sold items on eBay's trading platforms was nearly $60 billion. This means that eBay users worldwide trade more than $1,900 worth of goods on the site every second.

The benefit to consumers is clear: eBay provides an open trading platform where the market determines the value of items that are sold. Over the years, the site has become a cultural barometer of sorts, providing a view into what objects consumers want most at any time.

Since its initial public offering in 1998, the company has continued to innovate and connect people - and not just through its marketplaces. Two critical acquisitions have made eBay Inc. a global leader in online payments and communications as well.

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