Revenue Model for Google, Amazon.com and eBay

Every business needs the specific business model to generate revenue to sustain itself. All of these business models must specify their revenue model that describes on how the company will earn revenue. For your information, there are several revenue models in this information technology business environment which are sales, transaction fees, subscription fees, advertising fees, affiliate fees, and some other revenue sources.

Google

The main source of Google’s revenue is from advertising. Google earns most of the revenue through two advertising programs which are Google Adwords and Google Adsense. Google Adwords is a pay-per-click (PPC) advertising program which targeted for both text and banner advertisement. The payment of Google Adwords is based on qualifying click-through. It allows the advertisers to present their advertisements to people at the moment they are looking for information which related to what the advertiser has offered. On the other side, Google Adsense is an ad serving program which allows web advertisers to enroll text, image, and video advertisement in Google’s search results and other Google related websites. The revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google. In addition, Google also using affiliate revenue model to generate income as it provides a highlighted web address or images that link to another website.

eBay

eBay is an online auction and shopping website which allow everyone sell and buy products online. This means that the participants bid for the products over the internet. eBay has various revenue models in generate its revenue, but the majority revenue is earned from the transaction fees revenue models. Other than the e-auction, eBay also own the Paypal and Skype which help it to generate additional revenue other than the e-auction.

Amazon.com

Amazon.com is a completely e-commerce company which is a retail merchant that operates solely over the web and it is also known as one of the first major companies to sell goods through internet. It is different from eBay because Amazon owned its inventories and constitute sales in its website. Other than operates retail websites, it also provides programs that enable third party the opportunity to sell their products on its web sites worldwide. The revenue earned by Amazon is mostly based on the sales revenue model.

In conclusion, three of these companies are using different revenue models in generating their revenue, moreover have successfully earned a large amount of money. However, in my opinion, I think Google is earning the most revenue as compare to the other two companies, this is because of Google not only generate its revenue from advertising and affiliation, but it also using other methods.