As we know, Google,Inc, eBay and Amazon.com,Inc are some examples of e-commerce companies which are well known and functional for everyone in the world. Millions of online users visiting those website everyday, both here in Malaysia and internationally.
But, the question is, “What is the major source of revenue for those companies to survive in this competitive world?” As common, those companies earn their major revenue through e-commerce but they use the variety innovative ways to generate their revenue in order to make themselves different form others.
The major source of revenue for Google comes from advertising such as Adwords, Adsense, Foogle and so on. However, most of the revenue of ebay from the transaction fees between bidder and seller. For amazon.com, the sale of various products is the main business for it.
Google generates most of the revenue which is more than 90% of the total revenue from Google AdWords. Therefore, Adwords plays a vital role in Google’s growth.
Google AdWords is a pay per click advertising which has designed to allow the advertisers to present their advertisements to people while they are looking for information related to what the advertiser has to offer. It is an online advertising payment model in which payment is based on qualifying click-through. An advertiser has to pay every time his ad receives a click. The Advertisers decide the keywords relevant to their offer that should display their ad and the maximum amount they are willing to pay per click for that keyword. Upon using Google's search engine, ads for relevant words are shown automatically as "sponsored link" on the right side of the screen, and sometimes above the main search results. Therefore, it is easily to recognize by users and visitors. Others applications of Google which contribute to the advertising revenue with pay per click method are Adsense and Froogle.
“No matter what your budget, you can display your ads on Google and our advertising network. Pay only if people click your ads.”
Google Adwords
Those above words appear in Google website is a strategy to encourage people to advertise their business on Google.
eBay connects hundreds of millions of people around the world everyday with providing the internet platform of choice for global e-commerce, online payment and communication. Since its initial public offering in 1998, ebay has expanded to included some of the strongest brands in the world, including Paypal, Skype, Shopping.com, and so on.
How does the eBay earn revenue?
eBay is the world's largest online marketplace where anyone can sell practically anything at any time. It gives the chance for everyone to deal with transactions. Mostly, eBay creates a relationship between the sellers and bidders in order to earn the transaction fees. eBay runs an affiliate program under the name eBay Partner Network. eBay affiliate marketers fees are paid a percentage of the eBay seller's transaction fees. The payout is 50% to 75% of the fees paid for an item purchased.
eBay generates revenue from a number of fees. The eBay fee system is quite complex; there are fees to list a product (Insertion Fee) and fees when the product sells (Final Value Fee), plus several optional adornment fees, all based on various factors and scales. In addition, eBay owns the PayPal payment system which has fees of its own. PayPal enables any individual or business with an email address to securely, easily and quickly send and receive payments online whether eBay or non-eBay transactions. Advertising also contributes to a part of revenue, eg: All advertising placements in eBay are charged on a CPM basis (Cost per thousand impressions) of between USD $5 - $7 CPM, and campaigns start from USD $1,000.
Revenue source of Amazon.com,Inc
Amazon.com, Inc is the largest online retailer which provides sales of books, music CDs, VCD and DVDs, software, kitchen items, toys & games, sporting goods, watches, health and personal-care items, musical instruments, clothing, and more. It is well known online bookstore which offer more than 200,000 titles of books. Therefore, the major revenue of Amazon.com,Inc is exactly come from those sales.
Besides, Amazon generates mosst of its sales from affiliate called Associates, and third party sellers who list and sell products on the Amazon websites. Associates receive a commission for referring customers to Amazon by placing links on their websites to the Amazon homepage or to specific products. In additional, Amazon associates could place banner or text links on their site for individual books, or link directly to the Amazon home page. When visitors clicked from the associate's website through to Amazon and purchased a book, the associate received a commission from Amazon.
Nowadays, Amazon has at least 900,000 members" in its affiliate programs in world. Associates can access the Amazon catalog directly on their websites by using the Amazon Web Services (AWS) XML service.
But, the question is, “What is the major source of revenue for those companies to survive in this competitive world?” As common, those companies earn their major revenue through e-commerce but they use the variety innovative ways to generate their revenue in order to make themselves different form others.
The major source of revenue for Google comes from advertising such as Adwords, Adsense, Foogle and so on. However, most of the revenue of ebay from the transaction fees between bidder and seller. For amazon.com, the sale of various products is the main business for it.
Google generates most of the revenue which is more than 90% of the total revenue from Google AdWords. Therefore, Adwords plays a vital role in Google’s growth.
Google AdWords is a pay per click advertising which has designed to allow the advertisers to present their advertisements to people while they are looking for information related to what the advertiser has to offer. It is an online advertising payment model in which payment is based on qualifying click-through. An advertiser has to pay every time his ad receives a click. The Advertisers decide the keywords relevant to their offer that should display their ad and the maximum amount they are willing to pay per click for that keyword. Upon using Google's search engine, ads for relevant words are shown automatically as "sponsored link" on the right side of the screen, and sometimes above the main search results. Therefore, it is easily to recognize by users and visitors. Others applications of Google which contribute to the advertising revenue with pay per click method are Adsense and Froogle.“No matter what your budget, you can display your ads on Google and our advertising network. Pay only if people click your ads.”
Google Adwords
Those above words appear in Google website is a strategy to encourage people to advertise their business on Google.
eBay connects hundreds of millions of people around the world everyday with providing the internet platform of choice for global e-commerce, online payment and communication. Since its initial public offering in 1998, ebay has expanded to included some of the strongest brands in the world, including Paypal, Skype, Shopping.com, and so on.How does the eBay earn revenue?
eBay is the world's largest online marketplace where anyone can sell practically anything at any time. It gives the chance for everyone to deal with transactions. Mostly, eBay creates a relationship between the sellers and bidders in order to earn the transaction fees. eBay runs an affiliate program under the name eBay Partner Network. eBay affiliate marketers fees are paid a percentage of the eBay seller's transaction fees. The payout is 50% to 75% of the fees paid for an item purchased.
eBay generates revenue from a number of fees. The eBay fee system is quite complex; there are fees to list a product (Insertion Fee) and fees when the product sells (Final Value Fee), plus several optional adornment fees, all based on various factors and scales. In addition, eBay owns the PayPal payment system which has fees of its own. PayPal enables any individual or business with an email address to securely, easily and quickly send and receive payments online whether eBay or non-eBay transactions. Advertising also contributes to a part of revenue, eg: All advertising placements in eBay are charged on a CPM basis (Cost per thousand impressions) of between USD $5 - $7 CPM, and campaigns start from USD $1,000.
Revenue source of Amazon.com,Inc
Amazon.com, Inc is the largest online retailer which provides sales of books, music CDs, VCD and DVDs, software, kitchen items, toys & games, sporting goods, watches, health and personal-care items, musical instruments, clothing, and more. It is well known online bookstore which offer more than 200,000 titles of books. Therefore, the major revenue of Amazon.com,Inc is exactly come from those sales.
Besides, Amazon generates mosst of its sales from affiliate called Associates, and third party sellers who list and sell products on the Amazon websites. Associates receive a commission for referring customers to Amazon by placing links on their websites to the Amazon homepage or to specific products. In additional, Amazon associates could place banner or text links on their site for individual books, or link directly to the Amazon home page. When visitors clicked from the associate's website through to Amazon and purchased a book, the associate received a commission from Amazon.
Nowadays, Amazon has at least 900,000 members" in its affiliate programs in world. Associates can access the Amazon catalog directly on their websites by using the Amazon Web Services (AWS) XML service.
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