Identify and compare the revenue model for Google, Amazon.com and eBay (Week3)

There are total of 5 revenue models that available on the net which consists of sales, transaction fees, subscription fees, affiliate fees and advertisement fees.


mainly involves in advertising fees. The Google website is adopting the pay per click advertising program. The Google is charging the advertiser once the user click on the advertisement which will link to the advertiser’s website. This revenue model helps Google to generate more and more income as the year passing by. Besides, Google is using affiliates fees model to generate income too. It provides a highlighted web address or images that link to another website.

For Amazon book and music selling online business, it mainly depends on the volumes of selling the books and music. For current time, Amazon is no longer a book and music selling company. It has expanded its business by diversifying it through toy, health and beauty, sports and outdoors and others selling products. However, it also takes the opportunity of using advertisement fees as a passive income for advertisers to promote their advertisement to earn extra income to the company itself.

The primary income for this company is through transaction costs. When people post their items on eBay, it charges the insertion fees for the auctioneer by giving a space for them to auction their items or products. If the products were sold, eBay will also charge the final fees for the product of being sold. In another term, it is similar to commission fees.