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

Revenue model is a model to describe the various revenue streams your business will be putting in place and how each will generate the money. We will be discussing about the comparison of revenue model for few E-Commerce websites which are Google, Amazon.com and eBay.

Google is a public and profitable company focused on search services which named for the mathematical term “googol”. It operates web sites at many international domains, with the most trafficked that recognized as "world's best search engine" because it is fast, accurate and easy to use. Google generate most of the revenue from Google AdWords which is a pay per click advertising program that designed to allow the advertisers to present their advertisement to people at the instant that the people are looking for information related to what the advertiser offer.

Amazon.com is an American electronic commerce and it is the one of the first major companies to sell goods by internet. Amazon.com uses the Distributor Model as their revenue model which it takes ownership of the products where it sells products to those who directly entered the “store” to make purchase. As a result, it realizes the total revenue it gets off the product’s sale. For example, a supplier purchases a product from Amazon.com for $2.00 and resells it for $4.00. The $2.00 is the margin before costs. Once cost is factored in, however, the gross margin can be substantially less.

eBay.com is an online auction and shopping Web site in which people and businesses buy and sell goods and services worldwide. It has established localized web sites in thirty other countries and it also owns PayPal, StubHub, Skype and other business. EBay generate most of its revenue by Seller Fees. This fee system is quite complex where there are fees on listing a product on eBay and fees when product sells plus several optional fees which all based on various factors and scales. The latest financial results shows that Skype shows an increase of 61% over last year, PayPal increased up 32% from the same period last year.