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

Revenue models describe the methods or techniques that a organisation can generate revenue or produce profits from its website.Every organisation will make income by different ways, its depends on the nature of the website.There are FIVE major revenue models that organisation that can refer to:

I) Sales Revenue Model-----Income come from sales of goods, services and merchandise information in the websites.

II) Transaction Fees Revenue Model-----An organisation gets revenue by earned commission for executing a transaction.

III) Advertisement Fees Revenue Model-----An organisation provide spaces in their website to allow others organisation to place their advertisement and collect advertisement fees from the them.

IV) Subscription Fees Revenue Model-----When customer subscribing to the content or services offered by the website,the organisation can collect the subscription fees from the users.

V) Affiliate Fees Revenue Model-----An organisation gets commissions for referring customers to others people websites.

GOOGLE
Google earned revenue from multiple revenue models.The major of Google's revenue source is advertising.Google offers targeted advertising solutions and global Internet search solutions.There are Google Adwords,Pay per Click Advertising,Google Adsense,and Froogle.

Google AdWords is a pay per click advertising program of Google designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer.

Pay-Per-Click (PPC) is the best way to send immediate, targeted traffic to your website. It is an online advertising payment model in which payment is based onqualifying click-throughs. 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.

AdSense is an ad serving program run by Google Website owners can enroll in this program to enable text, image and, video advertisements on their sites. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google. AdSense program includes AdSense for search and AdSense for content.

Froogle is a service from Google that makes it easy to find information about products for sale online. Froogle is a price engine website launched by Google.

AMAZON.com

The Amazon.com is an online selling books company.Amazon.com generates revenue by using sales revenue model, affiliate fees,transaction fees and subscription fees.Amazon.com get commissions from other publishers by referring customer to publisher's' website.

eBAY

eBay is an online auction and shopping website that allow people to buy or sell goods and services around the world.eBay use transaction revenue model to earn money from owning paypal and online paying system.There are three others fees that ebay earned:

Insertion fees: When an item listed on Ebay, this nonrefundable fee is charged.

Promotional fees: Fees that charged for additional listing options that help attract attention for an item, such as highlighted or bold listings.

Final value fees: Commission that charged to the seller at the end of the auction

moreover, eBay also earned money from sales revenue model which brought from its subsidiary company,Half.com which is selling goos website.

eBay success and its causes

eBay Inc. is an American Internet company that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell goods and services worldwide. In addition to its original U.S. website, eBay has established localized websites in thirty other countries. eBay Inc. also owns PayPal, Skype, StubHub, Kijiji,and other businesses


eBay was founded in September 3, 1995 by French computer programmer Pierre Omidyar. He started it for his wife so she could have a place to sell her collectibles. He originally named his auction website AuctionWeb. It remained that way for 2 years until 1997 when he renamed it eBay.


eBay is short for Echo Bay, which was the name of Omidyar’s consulting firm at the time. He had attempted to register the domain “EchoBay.com”, but found that it was taken, so he shortened the name to eBay.


In 1996, eBay hired Jeff Skoll, a Stanford MBA. He became eBay’s second employee and first president. He wrote the business plan that brought eBay from a startup to a great success. Ebay went public in 1998 as a auction website where people could post items for sell and buyers could bid on them in auction style in the same manner auctions are held offline. This would give people the opportunity to conveniently post items for sell that would otherwise be laying around serving no purpose. The very first item sold on eBay was a broken laser pointer.


When eBay went public it caught on like wildfire. Everyone was selling their old junk on eBay. Pierre Omidyar became a instant billionaire. Ebay ended the year with an average of close to 2 million daily auctions. The growth did not stop there though. Ever since eBay has been growing at record rates in terms of company expansion and financial growth.


The history of eBay leads up to the fact that eBay is the fastest growing company of all time. It is estimated that over 3000 new users find their way to eBay on a daily basis. Over 700,000 Americans report eBay as their primary or secondary source of income. There are now over 200 million registered users worldwide. People spend more time on eBay than on any other online site.

The history and evolution of E-commerce

History of E-commerce


E-commerce is any business related transactions partially or totally carried out by electronic medium especially on internet using Open networks or Closed network.The most important feature accountable for the success of internet is electronic commerce that allows people to buy or sell anything they want at anytime of the day or night (24/7).The process of advancement in Information Technology to evolve into a business transaction is the e-commerce history.


During prehistoric period before invention of electricity, transactions of all the business were done face to face or via letters. Later on this was substituted by telegraph, telephones and in mid 1980’s by fax machines. As large companies invested vastly in researching in order to develop more reliable electronic means of transaction, old technology was replaced by new technologies that were more consistent and spread much faster than the previous technology.


To interchange data and to carry out business deals electronically in 1960’s Electronic Data Interchange (EDI) was formulated. Initially e-commerce was facilitating business transactions electronically mostly using technology such as EDI (electronic data interchange) and EFT (electronic funds transfer) to send business documents such as purchase orders or invoices. Previously in 1970’s and 1980’s it also involved data analysis.

There have been several key steps in the history of e-commerce. The first step came from the development of the Electronic Data Interchange (EDI). EDI is a set of standards developed in the 1960’s to exchange business information and do electronic transactions. At first there was several different EDI formats that business could use, so companies still might not be able to interact with each other. However, in 1984 the ASC X12 standard became stable and reliable in transferring large amounts of transactions.

The next major step occurred in 1992 when the Mosaic web-browser was made available, it was the first ‘point and click’ browser. The Mosaic browser was quickly adapted into a downloadable browser, Netscape, which allowed easier access to electronic commerce. The development of DSL was another key moment in the development to of e-commerce. DSL allowed quicker access and a persistent connection to the Internet. Christmas of 1998 was another major step in the development of e-commerce. AOL had sales of 1.2 billion over the 10 week holiday season from online sales. The development of Red Hat Linux was also another major step in electronic commerce growth. Linux gave users another choice in a platform other then Windows that was reliable and open-source. Microsoft faced with this competition needed to invest more in many things including electronic commerce.

Napster was an online application used to share music files for free. This application was yet another major step in e-commerce. Many consumers used the site and were dictating what they wanted from the industry. A major merger, in early 2000, between AOL and Time Warner was another major push for electronic commerce. The merger, worth $350 million, brought together a major online company with a traditional company. In February 2000 hackers attacked some major players of e-commerce, including Yahoo, ebay and Amazon. In light of these attacks the need for improved security came to the forefront in the development of electronic commerce.

It is predicted that that revenues, up until 2006, will grow 40% to 50% yearly. Expectations of higher prices as well as larger profits for e-commerce business are also present. Also, we will see a larger presence by experienced traditional companies, such as Wal-Mart, on the Internet. It is believed companies in general will take this mixed strategy of having stores online and offline in order to be successful. It can be seen that there will be a large growth in Business-to-Consumer (B2C) e-commerce, which is online businesses selling to individuals. However, even though B2C electronic commerce may be the most recognizable there are different varieties.

Today the largest electronic commerce is Business-to-Business (B2B). Businesses involved in B2B sell their goods to other businesses. In 2001, this form of e-commerce had around $700 billion in transactions. Other varieties growing today include Consumer-to-Consumer (C2C) where consumers sell to each other, for example through auction sites. Peer-to-Peer (P2P) is another form of e-commerce that allows users to share resources and files directly.


Evolution of E-Commerce

E-Commerce was birth out of the World-Wide-Web (WWW). Although many people use the terms WWW and Internet interchangeably, the WWW is just one of the many services available on the Internet. The aspect of the WWW actually is a relatively new aspect of the Internet. While the Internet was developed in the late 1960s, the WWW came into existence more than a decade ago - in the early 1990s. Since then, however, it has grown phenomenally to become the most widely used service on the Internet.

Although the Web has made online shopping possible for many businesses and individuals, in a broader sense, e-commerce has existed for many years. For decades, banks have been using electronic funds transfer (EFT, also called wire transfer), which are electronic transmissions of account exchange information over private communication networks.

Businesses also have been engaging in a form of electronic commerce, known as electronic data interchange, for many years. Electronic Date Interchange (EDI) occurs when business transmits computer-readable data in a standard format to another business. In the 1960s, businesses realized that many of the documents they exchange related to the shipping of goods - such as invoices, purchase orders, and bills of lading - and included the same set of information for almost every transaction. They also realized that they were spending a good deal of time and money entering these data into their computers, printing paper forms, and then re-entering the data on the other side of the transaction. Although the purchase order, invoice, and bill of lading for each transaction contained much of the same information such as item numbers, descriptions, prices and quantities - each paper form had its own unique format for presenting that information. By creating a set of standard formats for transmitting that information electronically, businesses were able to reduce errors, avoid printing and mailing costs, and eliminate the need to re-enter the data.

ELEMENTS OF TRADITIONAL COMMERCE (seller side)

1. Conduct market research to identify customer needs.

2. Create product or service that will meet customer's needs.

3. Advertise and promote product or service.

4. Negotiate a sale transaction, including:

- Delivery logistics

- Inspection, testing and acceptance

5. Ship goods and Invoice customer

6. Receive and process customer payments

7. Provide after-sales support, maintenance and warranty service.

There are more activities than business processes in the traditional procedure. There are also more incompatible systems which the EDI does not communicate well with different Operating systems.

Electronic Commerce has brought the solution to this problem and drastically altered the structure and process for business transactions across networks.

About Kevin Ng

Hi there, I'm Ng Jen Wei. You can call me Kevin as well. I'm 23 years old and I'm from Alor Star, Kedah. I'm currently staying in Semenyih.
Firstly, let me explain what is the meaning of our group name 'E-Noll'. Well, the word 'E' comes from E-commerce. 'NOLL' stands for the first name of our group's members which are Ng, Ong and 2 Lim's :)
Talk about my hobbies, I like internet surfing, car modification, watching movies, swimming and music listening. I like internet surfing but don't like gaming. I surf internet everyday.

Top 5 websites I visited the most are:
http://forum.lowyat.net
www.zerotohundred.com
http://chinese.cari.com.my
http://auctions.yahoo.co.jp
www.e-kereta.com

The reason I visit the above websites the most is because I can do online business and earn some money. I also can get to know more friends that is similar interest with me then we can exchange knowledge about car modification.

Top 5 activities are:
- Online business
- Foruming
- Knowing friends
- Chatting
- Online movies

I think that's all for my part. If you wish to know more about me, you can add me to your MSN njenwei@hotmail.com

Thanks for viewing.

About Suat Leng

Hello everybody, my name is Lim Suat Leng. I grew up in a small village called Chuah which is located at Negeri Sembilan. I am currently a final year student for Bachelor of Business Administration (Hons) Entrepreneurial in University Tunku Abdul Rahman (UTAR), branch of Sungai Long. Actually, this is my first time to write my blog. My hobby is reading, watching movie, mailing and so forth. In spare times, I like listening to the music, reading a book or a magazine to keep myself well-informed. Well, I also enjoy shopping and traveling with my friends and family as well.

The following are the websites I usually visited:

www.yahoo.com
www.google.com
www.hotmail.com
www.youtube.com
www.friendster.com
www.sinchew.com.my

Normally, I would like to check my latest messages and reply or sending mail to my friends via Yahoo and Hotmail website. Google or Yahoo are the famous search engines that i often use for searching information that are useful for me. That useful information helps me a lot in doing my assignment. Besides that, I also visit You Tube website to watching the latest Hong Kong drama movie and search for any movie that i like. I like log on to Friendster website which allows me to keep in touch with friends and getting to know about their updates. Sin Chew Daily is a Chinese online newspaper site that enables me to know about current news, nation and worldwide.

There are my favourite internet activity that i usually do during my leisure time:

• chatting and share information with my friends


• check and reply or send e-mail to my friends


• searching information


• watching movie


• downloading videos and songs
  

I hope through this self-introduction that you have learned a little about me and who I am. Thanks for viewing my self- introduction.

My dEtAILs

Halo..i m Ong De Jia. This is just a normal name but it is meaningful which means "have good behaviors and attidutes"in Chinese. I am so proud of my name because it is given by my parents. I don't have any english name because i think my Chinese name is good enough..hahaha..

I was born in Negeri Sembilan,Seremban in 1986.Until today, i am 22 years olds.i still very young and energetic to do everything..but i hate to write blog...really do not like to do this task..aiyo..but no matter how i hate it..i still forced to write it...haiz..

After STPM, I applied to study in UTAR because "UTAR is my FIRST CHOICE" but only after i was abandoned by goverment and local university.Fortunately and unfortunately, now i am taking the Bachelor Of Business Administration (Hons) Entrepreneurship in UTAR in Sungai Long Campus.

Our world is brilliant and make me have many hobbies.I like music, novels, films, handwriting, painting,chatting,stamp collecting,travelling,singing,dreamming and sleeping as well. I don't like shopping because shopping is just a wasting time and money activity.

Ermmmm...my character is gentle and humorous---i am not praising myself..and i juz heard from my friends that commend on me...hehe..If u need my help, please do not hesitate to call me.BUT..the final desicion is on my hand..help or not to help u..its still depends on my mood...

Top Five Website that i visited are:

* http://www.facebook.com/

** http://www.ifeng.com/

*** http://www.yahoo.com/

**** http://www.sinchew-i.com/

***** http://www.baidu.com/

Why i like to surf above websites:

I) I like to use facebook because i can chat with my friends, share some opinions, upload photos

or grab photos from the website. By using the facebook, i will not lost contact with all my

friends.Besides that, facebook hlep me to build and enlarge my social networks among my

friends.

II) Ifeng is a news website which owned by the Phoenix-tv in HongKong. The website providing

the latest worldwide news. For example,news about the wars against terrorists,finacial

crisis..and many many useful information.In the website, there is a forum to allow readers to

commend on some incidents.

III) Yahoo contains lots of variety information. But i most concern is the yahoo financial

website.From the website,i can know the latest global stock market movement and many

news about the finacial events.As I know, a stock market is a reflector of a country economy

condition.

IV) The Sinchew website is also about the news,but the news is more focus on our country. As a

malaysian,its ought to know what is happening in own country. The election results,where to

travel,the weather condition and so on are all mention in the website.

V) The Baidu website is the largest Chinese search engines in the world. I always use this

website to download some musics,view information about historical events, read encyclopedia

and so on for the purpose of self-enrichment.

Besides that,the other five internets activities that include download movies and songs from http://www.gougou.com/ and http://www.xunlei.com/. As a student,i don't have extra money to buy the original copy of movies n songs album.So,the publishers please don't blame me..its their faults to sell the original copy so EXPENSIVE!!!

Window Live Messenger is one method that i can always keep in tauch with friends. Its is free of charge to chat with friends. My main chatting partnet Miss Choo also like to use this Internet tool to keep communicate with me.hahaha...

An investment website,the http://www.hdbs.com.my/ which provide the real-time stock price services to clients and the website is connected to Bursa Malaysia become my favourite website too. I always use this website to analyse some stock to further invesment..but not for this time,may be useful for few years later.

The http://www.skyme.com/ is a website that allow me to watch the movies online. I always ask Miss Belky to watch the free movie together.Watching movies online can impove our relationship in good condition..hahahehekeke...So,as i always said that, Internet gives us so many benefits...

Lastly,i use Internet to send mail and accept mails from friends. Some of my friends will send me their photos,some foward e-mails,meaningful mails and so many intresting things.

OK ..here some introductions about myself.I wish all my friends HAPPY CHINESE NEW YEAR. (want to wish u all first because next blog cannot make jokes anymore,must be in serious)and ALL OF YOU SCORE VERY HIGH MARKS IN EC SUBJECT ooooo.

AbOuT mE.....^^

Hi, my name is Lim Sing Fei, 22 years old. I came from a small village Tanah Merah Site C which is located at Negeri Sembilan. I’m currently pursuing Bachelor Of Business Administration (Hons) Entrepreneurship in University Tunku Abdul Rahman in Sungai Long Campus. This is my 1st time to write blog and i dun like to write blog because i dun know want to share what to you all.

Mmm…talk about my interest. I like to jogging, listening music, watching movies, eating, sleeping and .....! I think my u life are quite colorful...with my friends go here go there......such as go to shopping (everyone tired already except me...hehe),visit, traveling (take as much as photo i can), cheong k (purpose go to taken photo with my friends and eating not for singing...haha), exercise (together sauna, gym and swimming), mamak stall yam cha......that are my nice and sweet memories in u life!=)


The top five website I visited are:
http://www.friendster.com/
http://www.yahoo.com/
http://www.msn.com/
http://www.google.com/
http://www.youtube.com/

I like to use friendster website to edit my profile, share memorable picture in my profile, looking for my friends’ news and picture and to search for new friends.
I will surf yahoo website to check my latest messages that send by my friends and also sending mail to my friends.
I will surf msn.com to chatting, share information with my friends and sometime also asking question to my friends when I facing problem.
I usually use the Google website to search information for my assignment and downloading useful information.
I will use YouTube to watching funny videos such as Taiwan entertainments channel, watching the latest Hong Kong drama and visit for my favorite artiest video clips when I 'm free.

The top five Internets activities i usually do:
(1) downloading videos & music
(2) chatting with my friends
(3) searching information
(4) check and send e-mail to my friends
(5) watching movie


As a closing, above are my shortly introduction. If wish to know more about me, you can add me…^^
Msn: limsfei@hotmail.com
Friendster: limsfei@yahoo.com

Tata...thanks for viewing ^^