Revenue model is a description of how the company or an E-Commerce project in generating income through their published websites by using different techniques. Along with the evolution of e-commerce, the traditional revenue model especially sales is expanded to variety of revenue options and e-commerce business model. There are five revenue options existed nowadays which are sales, transaction fees, subscription fees, advertising fees, and affiliate fees.
1. Sales---A company generates revenue from selling goods, merchandise information and services which provided in their published websites.
1. Sales---A company generates revenue from selling goods, merchandise information and services which provided in their published websites.
Amazon.com is generating sales revenue from its online bookstore, electronics, software, DVDs, video games, music CDs, MP3s, apparel, footwear, health products, and etc.
eBay also sells a variety of goods such as cell phones, cameras, cars, CDs, concert tickets and others through its website.
However, Google is not generating revenue through sales of goods which was done by Amazon and eBay.
eBay also sells a variety of goods such as cell phones, cameras, cars, CDs, concert tickets and others through its website.
However, Google is not generating revenue through sales of goods which was done by Amazon and eBay.
2. Transaction fees---Companies receive commission based on the volume of the transactions made or fee per transaction conducted at the website regardless of the volume.
eBay is a classical example for this model since eBay’s main feature is auction. eBay acted as an intermediate in business trade between buyers and sellers and receive transaction fees as commissions from them. Like most auction companies, eBay does not only sell goods that it owns itself. eBay merely facilitates the process of listing and displaying goods, bidding on the goods, and paying for them. eBay acted as a marketplace for individuals and businesses to auction off goods and services through its website.
Google and Amazon.com are not exercising this transaction model in market.
Google and Amazon.com are not exercising this transaction model in market.
3. Subscription fees---Customers pay a fixed amount either monthly or yearly when they are subscribing for access to contents and services offered by the website such as library services and online journal database, as well as privileged discounts for members.
eBay Stores offers three subscription tiers with features designed to boost sellers’ success through every stage of business growth. These three subscription tiers are classified by custom pages available for sellers to boost their brand, frequency of related store name appears in “Shop eBay Stores” area of matching search results, and etc.
Google offer a premier edition which costs $50 per user account per year under Google Apps for business. Google’s web-based messaging and collaboration apps require no hardware or software and need minimal administration, creating tremendous time and cost savings for businesses. 
Kindle subscriptions under Amazon.com offer the subscribers to subscribe to periodical publications and have them delivered wirelessly to subscribers’ Kindle.4. Advertising fees---Publishers can charge other companies for allowing them to place banners or advertisements on their websites, in return for a fee as advertisement fees. All these three websites generate revenue through this advertising fee.
Amazon.com- Clickriver
5. Affiliate fees---Companies receive commissions for referring customers to others’ website. It included CPM (cost per thousand impressions), CPC (cost per click) and CPA (cost per acquisition/action).Google AdSense put relevant CPC and CPM ads through the same auction, and lets them compete against one another. AdSense automatically displays the text and image ads that will generate the maximum revenue for a page once the auction over.
Amazon.com's program of "Make Money Advertising Amazon Products" offer subcribers earn up to 15% in referrals by advertising Amazon products. For example, when you add these links and banners to your web page and visitors click on them from your page, you can earn up to 15% on all purchases made during their shopping session.
In conclusion, the usage of revenue models are based on the function, purpose and requirement needed of the companies in business model. In my opinion, these revenue models are keep on expanding. As a result, I really believe that Google, Amazon.com as well as eBay will operate other new models in future. In consequence, e-commerce will be improved absolutely.
eBay's advertising placements are charged on a CPM basis of between USD $5 - $7 CPM, and campaigns start from USD $1000.
In conclusion, the usage of revenue models are based on the function, purpose and requirement needed of the companies in business model. In my opinion, these revenue models are keep on expanding. As a result, I really believe that Google, Amazon.com as well as eBay will operate other new models in future. In consequence, e-commerce will be improved absolutely.
2 comments on "~~REVENUE MODEL~~"
opps..there is so many types of revenue models existed..before reading this post, i only think that website can generating income by sales and advertising fees only...thanks for additional knowlegde for me ya..
Yes, e-commerce can earn their revenue through several revenue models. So that they only can earn as much as possible.
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