Identify and Compare the Revenue Model for Google, Amazon.com and eBay.

Google, Amazon.com and eBay are three famous examples of e-commerce success companies. Each of these companies has different types of revenue models that generate huge profits throughout the years. Every revenue model that each company using has its very own special characteristics and features that helps in maintaining the company’s specialty and successfulness.

Google Inc is an American public corporation which provides targeted advertising solutions and global Internet search solutions. With the fast pacing internet, people around the world starting build their webmaster skills to earn more revenues all the way through Google’s revenue model which talks precisely about Google AdWords and Google AdSense.

Google AdWords is a pay per click Google’s advertising program where Google generate most of the revenues from this revenue model. Pay per click advertising is an advertising model where advertisers have to pay whenever their advertisements receive a click. Google AdWords, featuring this advertising model, is designed to allow the advertisers to present their advertisements to the Internet users at the moment the users are searching for information connected to what the advertisers are providing.

Google AdSense is an advertising serving program where the website owners can enable text, image as well as video advertisements on their sites through this program. These ads are administered by Google and the revenue is generated on either a per-click or per-thousand-ads-displayed basis.

Amazon.com, Inc is an American e-commerce company and it was one of the first major companies to sell goods through the Web. Amazon was begun as an online bookstore which could offer more titles than the largest brick-and-mortar bookstores. Since 2000, Amazon’s logotype is become an arrow leading from A to Z, symbolizing the aspiration of the company to sell more variety products.

Amazon now has steadily enrolled into different area of retail sales, from entertainment electronic products, to kitchen item and other household products. The company began to sell its products under its own private label, “Pinzon”, starting from August 2005. This trademark application suggested the company to focus on textiles, kitchen utensils, and other household goods.

In March 2007, Amazon expanded its business to larger and more diverse list of products. The products that the company sold was including items such as paints, carpets, hair accessories, clothing, jewelry and etc. On September 25, 2007, Amazon selling downloads exclusively in MP3 format through its own online music store. In August 2007, Amazon announced AmazonFresh that offering various types of foods. Amazon has now expanded into film production in 2008.

eBay.com is an online auction and shopping Web site in which the Internet users and businesses sell and buy products as well as services all around the world. Millions of collectibles, appliances, computers, furniture, vehicles, and other miscellaneous items are listed, bought, and sold daily in eBay.com. Anything can be sold in the site as long as it is not illegal and it does not infringe the eBay Prohibited and Restricted Items policy.

In April 2006, eBay Express had been set up where selected eBay items are mirrored in this site. Buyers can shop in eBay Express using a shopping cart to purchase their desired items from multiple sellers. In June 2006, eBay opened an eBay Community Wiki and eBay Blogs that enable the Internet users to discuss, chat, and ask questions in those sites.

eBay provides several types of auctions. The most common three auctions types are Auction-style listings, and Fixed Price format. Auction-style listings allow the retailer to offer one or more items for sale for a specified number of days whereas Fixed Price format offers the seller to provide one or more items for sale and for those buyers who agree to pay at a particular price, they win the auction without bidding.

The revenue generated by Google is mostly from online advertising, whereas for Amazon, this company generates revenues through online shopping for different kind of range of products. While for eBay, it generates revenue from a number of fees, there are fees to list a product and fees when the product sells, as well as several optional fees. These are all based on various factors and scales. Although each company is using different kinds of revenue models, it cannot be denied that most of these revenue models bring a huge profit for the companies.