Question

In: Operations Management

Describe THREE (3) categories of e-commerce revenue models with ONE (1) real-life example for each model....

Describe THREE (3) categories of e-commerce revenue models with ONE (1) real-life example for each model. Below are the guidelines of answer. DO NOT use guidelines below as the answer of question. If you not understand question, DO NOT answer, please comment below. Use your own answer and give your own experience example.


Answer:
First let me list the three :
1. Affiliate marketing <<explain this and give one real life example.
2. Online advertising<<explain this and give one real life example.
3. Transaction fees<<explain this and give one real life example.


Explanation:
1. Affiliate marketing enables you to earn revenue by marketing or offering another product for sale on your site. For example, you may reference a book you read and recommend your customers get a copy for themselves. You could also set up an affiliate account and place a direct link to the book on the Amazon site, which will pay you a percentage of the sale. If you decide to participate in affiliate marketing, you\'ll need to research which companies might provide you with a financial incentive for promoting their sites on your page.
When you\'re just starting out, the money you earn from affiliate marketing may be just a small, supplemental amount. However, as traffic to your site increases, you may enjoy more substantial income.
2. Online advertising is a very popular revenue model for e-commerce businesses. In this method, companies or organizations buy advertising space on your site, provide a designed ad or written message, and then pay you for promoting their messages. Media sites, such as magazines, newspapers, and television channels typically use online advertising.
Two common types of online advertising include pay-per-click and pay-per-view, which determine how much advertisers will pay for their advertisements. While some sites charge a set fee for placing an ad, most pay a set fee for each person who clicks on a link or views a page related to the advertiser. As traffic to your site grows and more people click on an advertiser\'s link or view a related page, you\'ll earn more advertising revenue.
3. Transaction fees are the charges a company pays for using their service. If you\'ve ever sold anything on eBay, you know there\'s a set price for posting a product for sale. Each time a transaction happens, you pay a small fee to eBay for marketing your product. Whether you charge a small fee for a company to list a transaction or for someone to view a video, transaction fees can be a sizable if the traffic to the website is substantial.
Examples of the firms that use these revenue models are:
1. TDC and Orange are using Affiliate marketing .
2. Coco Cola , AMEX , Mint are using Online advertising .
3. Google (e.g. AdWords and AdSense),Facebook,New York Times (Marketing) are using Transaction fees.

Solutions

Expert Solution

First let me list the three :

Affiliate marketing

Online advertising

Transaction fees

Clarification:

Affiliate marketing:

This encourages you to win deals by advancing or selling an item on your site. You may allude to a book, for example, which you peruse and suggest that your clients get a duplicate. You can likewise set up an affiliate account, which will pay you a segment of the income by having an immediate association with the book on the Amazon site. You need to examine which organizations will furnish you with a money related motivating force to visit their pages on your page in the event that you need to participate in affiliate marketing.The sum you win from affiliate advertisers that possibly become a little extra whole when you are simply starting. Notwithstanding, you will have extensive benefits as the traffic to your site rises.

Online advertising:

For online business organizations it is a typical income model. This methodology permits organizations or associations to purchase promotions on our site and to incorporate an arranged advertisement or composed message. Online advertising is ordinarily utilized for news sources, for example, magazines, papers and TV channels.

The two most mainstream types of online advertisements are pay-per-click (pay-per-view) and pay-per-see (pay-per-see).

Albeit a few destinations charge a promotion expense, others pay a charge for every individual tapping on a connection or review a sponsor related page. For the developing number of individuals tapping the connection or visiting the profile of a marketing specialist on your site, you will get all the more advertising income.

Transaction fees:

These are the fees charged by a customer for its activity. You realize that there are fixed rates for the posting of an item available to be purchased on the off chance that you have ever sold something on eBay. You pay a little expense to eBay for selling your products each time a transaction happens. Regardless of whether you charge a little expense to enter a transaction or to see a video for another, the transaction charge might be huge if there is overwhelming traffic on the site.

Instances of the organizations that utilization these income models are:

TDC and Orange are utilizing Affiliate marketing .

Coco Cola , AMEX , Mint are utilizing Online advertising .

Google (for example AdWords and AdSense),Facebook,New York Times (Marketing) are utilizing Transaction fees

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