Friday, June 13, 2008

Discuss how E-commerce can reduce cycle time,improve employees' empowerment and facilitate customer support


What does Google , Amazon.com , eBay Earn???Or what is their Revenue Model???


Revenue Model is defined as the description of how the company or an EC project can earn revenue or besides that it also can be said as revenue from Internet specific, innovative business models. There are major model of revenue model for EC, Sales, Transaction fees, Subscription fees, Advertising fees, Affiliate fees and other revenue source.
Sales under the Revenue model for EC are selling of goods or services over the internet or their website. Example purchase of DELL computer through internet
Transaction fees for EC model is the fees received on the transaction made. Example each time you download a song or a wallpaper u needs to pay a certain fees on the thing you have download.
Subscription fees are the fixed amount paid pay by the subscriber on a frequent basic for using the services or information. An example would be subscription fees paid by Utar to Science Direct, Ebscohost, and Emerald for assessing on the journal.
Advertising fees is the fees paid by a company on the banner that placed on a particular website for a certain period or space.
An affiliate fee is the fees paid by companies for the purpose of allowing customer to access to the other website.
Other revenue source is the revenue other than those that has been stated above that earn through EC.

For Google the Revenue model is mainly from advertising fees. Google offers targeted advertising solutions and global Internet search solutions. The principal products and services include: Google AdWords and Google AdSense.Google AdWords is designed to allow the advertisers to present advertisements to people at instant when people are looking for information related to what the advertiser has to offer. When a user searches information Google's search engine, advertisements for relevant words are shown as "sponsored link" on the right hand side of the screen. Google AdSense is an ad serving program run by Google. Website owners can enroll in this program to enable advertisements on their sites. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google.

Amazonis one of the first major companies that sell goods by using Internet. Its steadily branched into retail sales of music CDs, videotapes and DVDs, software, consumer electronics, kitchen items, tools, lawn and garden items, toys & games, baby products, apparel, sporting goods, gourmet food, jewelry, watches, health and personal-care items, beauty products, musical instruments, industrial & scientific supplies, groceries, and more. Besides that it also provides global shipping to certain countries for some of its products. Thus, from here we can know that the Revenue model for Amazon.com is sales.
is the world's largest online marketplace where practically everyone can sell practically anything at any time. It is an online auction and shopping Web site in which people and businesses buying and selling goods and services worldwide. There are two types’ of fees that eBay charge on the sellers which are Insertion Fees and Final Value Fees. Insertion fees is more towards subscription fees where the seller would have to pay certain fixed fees according to the product that listed because it is charges on the items for sale. Final Value Fees is final payment fees if the product is sold. The value that needed to pay is according to the nearest price sold. This kind of fees is more towards to transaction fees.
As for comparison purpose these 3 EC website or companies use mainly in different kind of Revenue model. Google is mainly on Advertising fees, Amazon.com is mainly on Sales and eBay is mainly on Transaction fees and subscription fees.



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