Revenue model for Google, Amazon.com and eBay

Google, Amazon.com and eBay are some of the most successful companies around the world, well-known for their online generation of revenues.








Now let us briefly view through their revenue model one by one…


Google’s Revenue Model
A major percentage of Google’s revenue income is generated though advertising. In the year of 2007, Google’s revenue income reached as high as 16 billion dollars. Among this figure, 99% of it comes from their advertising services. The remaining 1% is derived from licensing. Some of Google’s advertising revenue model includes Google AdWords, Google Ad Sense and Froogle.

To enquire more information about Google’s Revenue Model…
Go to http://www.organicspam.com/google_revenue_model.asp




Amazon.com’s Revenue Model
Amazon.com is one of the first major companies to sell goods through the internet. They have made total revenue of 14 billion dollars in the year of 2007. Their revenue mainly arrived from selling books, videos, electronics, and kitchen equipment on domestics and international websites, such as Amazon Marketplace.

To enquired more information about Amazon Marketplace…
Go to http://www.amazon.com/gp/help/customer/display.html/?nodeId=537734




eBay’s Revenue Model
Ebay is an online auction and shopping website in which people and businesses buy and sell goods and services worldwide. They generated about 7 million dollars in the year 2007. Among that, 96% of its revenues are generated from transactions. Whereas, it’s remaining 4% comes from advertising and other income.

To enquired information on how eBay’s work…
Go to http://pages.ebay.com/help/newtoebay/questions/about-ebay.html

Based on the above information, we can differentiate the 3 companies according to the way they generate revenues.

• For Google, their revenues are mainly based on advertisements. Therefore, they are adopting the advertising revenue model.
  
• Regarding Amazon.com, their revenues are based on online retailing. So, they are using the sales revenue model instead.
  
• Finally, eBay gained their revenues mainly from the services they provide. This means they adopt the transaction fees revenue model.

To enquire more information about online revenue models…

Go to http://www.davechaffey.com/Internet-Marketing/C2-Internet-micro-environment/Online-revenue-models