Indentify and compare the revenue model for Google,Amazon.com & Ebay

Google Revenue Model

As a business, Google generates revenue by providing advertisers with the opportunity to deliver measurable, cost-effective online advertising that is relevant to the information displayed on any given page. Today, the majority of Google revenue comes from advertising. Its products and services include:

1)Google AdWords : It enables advertisers to deliver relevant ads targeted to search queries or web content to potential customers across Google sites and through the Google Network, which consists of content owners and websites. Their proprietary technology automatically matches ads to the content of the page on which they appear, and advertisers pay them either when a user clicks on one of its ads or based on the number of times their ads appear on the Google Network.

2)Google Adsense :Google distribute their advertisers' AdWords ads for display on the Google Network through their AdSense program. They share most of the revenue generated from ads shown on a site of a Google Network member with that member.

3)Froogle :Keeping in touch with other sites like Amazon.com, Buy.com and Yahoo.com, Google created a new shopping search tool called “Froogle". It has been called one of the most innovative price conscious tools on the Internet. Using the same technologies of Google.com, Froogle employs direct data received from merchants and through web crawls alone. Depending on the successes of the beta testing phase will provide adequate information as to whether Google continues with Froogle

eBay Revenue Model

Launched in 1995, eBay started as a place to trade collectables and hard-to-find items. Today eBay is a global marketplace where businesses and individuals can buy and sell practically anything.

ebay revenue model is very similar to Amazon.com. Both of their majority revenue are from sales and transaction revenue model. eBay generates revenue from a number of fees. 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.

Furthermore, affiliate fees also one of the ebay’s revenue models. 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.

Amazon.com Revenue Model

Amazon.com started as an on-line bookstore but soon diversified to product lines of VHS, DVD, music CDs and MP3s, computer software, video games, electronics, apparel, furniture, food, toys, etc.

There is a significant difference of revenue model between Google and Amazon.com. Amazon.com generates its majority revenue by sales and transaction revenue model. Amazon Marketplace allows sellers to offer their goods alongside Amazon's offerings. Buyers can buy new and used items sold directly by a third party through Amazon.com using Amazon Marketplace. This sales strategy and program has been very profitable for Amazon.com. Amazon charges a commission rate based on the sale price, a transaction fee, and a variable closing fee.

Besides that, Amazon.com also generates revenue by affiliate revenue model. Amazon derives about 40 percent of its sales from affiliates whom they call 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. If a referral results in a sale, the Associate receives a commission from Amazon. Worldwide, Amazon has "over 900,000 members" in its affiliate programs.