Identification & Comparison of revenue model for youtube, amazon.com and google

http://www.youtube.com/

YouTube is a well known e-commerce site where they are able to generate millions upon millions of video views per day. It is no problem for them to aggregate eyeballs from all around the world on it. There are millions of people upload and download videos everyday on face. With this competitive advantage (Enable to gather millions on people's eyesight everyday), YouTube is using Advertising, affiliate and subscription revenue model to sustain in the market.

https://www.google.com

Google's revenue model is just similar to YouTube, it depends most of its revenue generation on advertisement. Google generates up to 10 billions of total revenue and only 100-200 millions are from other sources like licensing.

https://www.amazon.com

While amazon.com initially is a online bookstore. It then diversified its products to electronic, toys, education, sports and so on. In addition, it is considered the pioneer in affiliate partnership marketing, where it uses affiliate revenue model as well. Besides, advertising and affiliate, it generate revenue using some other model which slightly different from YouTube and Google, that is transaction revenue.

We are going to discuss the revenue model implemented by these three e-commerce company in dept.

Advertising 

 

YouTube

Advertising is basically the most obvious and widely-accepted model to e-commerce sites. Video ads and text ads are two popular advertisement models. Even though other video sites choose to display both text ads and video ads, but until today, YouTube only opt for text advertisement as they are not willing to ruin users' experience on their site. Besides, YouTube can implement an email advertisement as they have the data and information of all registered user. Advertisement which is paid by other company to YouTube will then be sent out to users on daily, weekly or monthly basis.

Google

Google use Adwords to run its advertisement. Google Adwords offers par-per-click (PPC) advertising to owner where both text and banner can be advertised. It enable advertiser present it to people at instant those people are looking for information related to what advertisers are offering. Basically Google only allows short text advertisement in order to prevent users being annoying.

Amazon.com

With its well known and widely acceptance in US, it provides advertiser to make ads on its webpage and most of the time, their partners and alliances will make advertisement on its web site in order to catch consumer's eyes and increase revenue at the same time.

Affiliate

 

YouTube  

While affiliate is another revenue model which is similar to advertising but its fee is different. Advertisement is a payment of a sum while affiliate is focused on CPA (cost-per-action). Meaning that, YouTube only get pay when user buys or pays for the service or product through the page displayed in YouTube.

Amazon.com

As mentioned above, Amazon.com is considered the pioneer in affiliate marketing. Up to now, it did run its affiliate program as everyone can be a part in its affiliate program as shown in this website ( https://affiliate-program.amazon.com/ ). With this affiliate program, it actually enable Amazon.com turning consumer's click into cash which is going to be generated.

Transaction

   

Amazon.com 

The main source of revenue for Amazon.com is from its transaction as Amazon.com is a plate form for Sellers to promote their products and buyers to buy what they want and needs while Amazon.com act as a middle man to settle those customer service, packaging, delivering and so on. From this, there are lots of transaction with Amazon.com and the amount increase day by day as people nowadays are more rely on internet. Instead of going out, pick and choose, people are more convenience in click and get the products in short period of time. Amazon.com get revenue from every transaction and therefore it can generate huge amount of revenue through out the year. As shown in here ( http://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/amazon-case-study/ )

Subscription

YouTube

YouTube can generate revenue using subscription model as it contains huge amount of videos. It requires user to pay up a small amount of monthly fee or yearly fee in order to access a certain part of video or a better quality's video. Besides, YouTube provide a ads free environment to users with subscription.

This is a graph showing the revenue generated from few technological company.

 It shown that Amazon.com is actually the leader among these e-commerce sites.

E-commerce Success

To run an e-commerce successfully is not an easy task and to maintaining a successful e-commerce site is a vital part of a thriving retail business model these days. However, Amazon was passing through those difficult problems and become a success e-commerce throughout the network world. Amazon is a multinational electronic commerce launched by Jeff Bezos at year 1995. It started as an online bookstore, but soon diversified, selling MP3 downloads, software, CDs, DVDs, video games, electronics, furniture, toys, foods, and jewelry. Did you know? Amazon is also AmazonBasics that branded electronic products, AmazonFresh that sells and delivers groceries in Seattle, AmazonStudios that is online social movie studio, and Amazon WarehouseDeals that offers discount on refurbished products.

There are few strategies that Amazon applied to be success in their e-commerce business. First and foremost, internet imposes no limits on how much Amazon can sell. The digital enables limitless inventory, boots customer care and allows high margin, lowest prices. For limitless inventory, Amazon went from 1 category to 16 main categories. Amazon focuses on competition, product, search, buying power, brand and trust, and cost management. Besides that, Amazon also creates a digital driven supply chain by hiring the expert- Walmart. For boost customer care, Amazon first focuses on customer focus by following a bottom-up approach; every decision at Amazon is driven by customer’s needs. Secondly, Amazon focuses on frugality by continually looking for ways to do things cost-effectively. Lastly, Amazon focuses on innovation by always looking for simple solutions in order to provide lower prices to its customers.  Amazon had creates a trusted, loyal and informative relationship with its customers. For high margin and lowest prices, Amazon is significantly cheaper than its competitors assuming there is no sales tax and free shipping. As a pure-player, Amazon leverages its digital advantage to optimize its supply chain. Amazon leveraging its high positive cash flow, it is able to maximize margins and beat all other retailers when it comes to pricing.

Furthermore, Amazon’s control of customer accounts and loyalty. Amazon acquires its customers’ confidence and it benefits form a loyal customer base: 2/3 of the sales comes from returning customers. The 3 main approaches of Amazon’s control of customer accounts and loyalty are as below. First of all, recurring usage which is recurring usage captivates users’ attention. Then, seamless integration which is vertical integration that creates a consistent experience that is very appealing. At last, lock-in which occurs when circumstances prevent uses from leaving a platform.

Moreover, Amazon is building an ecosystem to achieve digital supremacy. Now, Amazon has reached a critical mass, it is trying to create an ecosystem to increase its footprint towards users and authors to customer loyalty. The examples for towards users are great device, massive selection and low prices. The examples for toward authors are higher royalty share (35% or 75%). Then, for customer loyalty, kindle owners will buy 70% more books than prior to owing the device.

Based on the three effective strategies applied by Amazon, Amazon has been a successful e-commerce in today’s world.


http://www.cbsnews.com/2100-205_162-706351.html

E-commerce evolution in Malaysia

Do you know what is E-commerce?

Electronic commerce, also known as E-commerce (EC). EC is the process of buying, selling, transferring or exchanging products, services or information via computer networks. It conducts the financial transaction in electronic means through Internet and other computer networks.

Let us have a look on the history of EC:

• 1960s - Businesses used computer networks to conduct electronic transactions. They used Electronic Data Interchange (EDI) system which enables companies to send documents such as invoices, order forms and shipping confirmation to other companies by computer.
• 1979 - American National Standards Institure launches ASC X12 standard, it is reliable in transferring large amounts of transactions. Michael Aldrich invented online shopping system which used videotex technology.
• 1981 - Thomson Holidays, the first company who used B2B online shopping.
• 1982 - France Telecom introduced Minitel and it was used for online ordering.
• 1984 - The first B2C online shopping mall is Gateshead SIS/Tesco and Mrs Snowball is the first online home shopper. At the same year, CompuServe launched the first EC service, which is Electronic Mall in USA and Canada.
• 1985 - Nissan UK sells cars and finance with credit checking to customers online.
• 1987 - Swreg provides software and shareware to authors to sell the products online by using electronic Merchant account.
• 1990 - Tim Berners-Lee used NeXT computer to write the first web browser, which is the World Wide Web, a hypertext-based web of information.
• 1994 - Netscape releases Navigator browser under the code name Mozilla and Netscape 1.0 is introduced to made transactions secure by using a security protocol called Secure Socket Layer. The first online bank opens. Pizza Hut offers online ordering on its Web page.
• 1995 - Jeff Bezos launches amazon.com. Dell and Cisco start using Internet for commercial transactions. eBay is founded as an AuctionWeb.
• 1998 - People can purchase Electronic postal stamps.
• 1999 - An eCompanies bought business.com. Napster, a peer-to-peer filesharing software launches.
• 2000 - The dot-com bubble burst.
• 2002 - eBay acquires PayPal. Niche retail companies founded with the concept of selling products through several targeted domains.
• 2003 - amazon.com posted its first yearly profit.
• 2007 - R.H.Donnelley acquired business.com.
• 2009 - amazon.com acquired zappos.com.
• 2010 - groupon.com rejects google's offer and paln to go ahead with an IPO.
• 2011 - eBay acquired GCI Commerce, a company which is running an online shopping sites for brick and mortar businesses.

Web 2.0

It is a new Internet tools and technologies which takes a concept of using the network as a platform for information sharing, customizing designs and collaboration on the World Wide Web. It allows users to interact and collaborate with each other in social media dialogue. Examples of Web 2.0 are social networking sites, wikis, blogs, video sharing sites, web applications and others.

Technologies used by Web 2.0:

• Ajax programming uses JavaScript to upload and download new data from web server.
• Asynchronous JavaScript - allows users to continue interact with the page, which data requests goin to the server and data coming back to the page are separated
• XML, JSON, DOM - used to transmit structure data and allow interactive user experience. Example, Google Docs used this technique to create a Web-based word processor.
• JavaScript frameworks
• Adobe Flex
• HTML

What Web 2.0 allows us to do:

• It allows users to retrieve information.
• It provides more user-interface, software and storage facilities through the browser.
• Users can provide and control the data.
• It encourages users to add value to the applications.

Refences:
http://www.timetoast.com/timelines/120739
http://money.howstuffworks.com/history-e-commerce1.htm
http://en.wikipedia.org/wiki/Web_2.0#Characteristics

Future of E-commerce

Our world is such a dynamic field as everyday is a new day in the world of e-commerce.  We see a lot of things and change a lot of things. For instance, there is no any touch screen mobile phone or laptop when I was a child and 20 years later by now, all of them have turn up. In this 21^st century, many of us probably would think that there is a promising and glorious future of e-commerce since advance in technology and in the foreseeable future, e-commerce will further confirm itself a major tool of sale.

Successful e-commerce will become a perception absolutely inseparable from the web as e-shopping is becoming more and more famous and natural. Such circumstances show that over the coming months and years, new technologies will continue to revolutionize to ease the customers as possible as can and can also make even more money into online sales. As a result, the day is not far off when the online shopping experience will surpass any service or offering that is available in a store.

The number of e-commerce deals grows gradually in every year and the sales volume of online stores is more comparable with those off-line stores which mean ‘brick-and-mortar’. Nowadays a lot of people are busy with their work and household duties and has force them to stay at home rather than heading to shopping mall. Thus, with the presence of internet, it can save a lot of time and give the opportunity for consumers to choose goods at the best prices. Such internet sales boom is the foundation for magnificent e-commerce future.

The tendency for quality and quantity of a goods and services is also becoming more and more obvious as the Internet in this day and age should be excluded geographical factor from the sale and so, it doesn’t matter whether the company store is situated in a capital or a small town. The buyer can survive as long as they have to adapt rapidly to the changes. Besides providing good services, e-store owners will have to put more attention to some elements like attractive design and user-friendliness in order to attract more customers. Modern technologies should be used as well for their business to become parts of e-commerce future.

In summary, there is a major shifts in how things may be requires looking at how to support customer need and want. As for e-retailers, they should not just concentrate on technology when they venture into e-commerce but to concentrate on what they need to be achieved. Well, the technology may be part of helping tools yet the marketing elements are just as important.

Related links:

http://ecommerce.about.com/od/eCommerce-Trends-and-Issues/a/The-Future-Of-Ecommerce_2.htm

http://www.e-crm.co.uk/newsletters/2011/ecommerce-2020.html

Who am I?

Hello, everyone.

Well, when we first meet a stranger, we will try get closer to each other. People normally introduce themselves saying in this way: "I am XXX. I am XX years old. I have many hobbies, such as XXX, XXX and XXX."

I will like all the others do. My name is Joanne. An ordinary girl-woman with extraordinary thoughts.Oops, what is girl-woman? Simply because my age is now at a turning point in which changing from a girl to a woman. So, can you guess what is my age? 19? 20 or 21? Age is merely a figure to me. I can be as age of 3 like a child when playing around with friends; doing silly, childish yet happy stuffs. I can be as age of 20 like a teenage when come to love matter. I am like others, dreaming about a wonderful, romantic, and dramatically relationship. I can be as age of 40 as a matured lady when come to problem solving and planning for life path way. If you don't like me, you will say I am emotionally unstable. But if you like me, you will say I am good in adapting to environment. A-not-bad-thinker, sometime a philosopher; Self-centered at times, confident at interval. This is the way I view myself, maybe some of my friends might not agree with it but I am just comfortable of being myself.

As a human being live in 21st century, I believe internet is no longer a strange thing as people in 19th century perceived. Spending around 5-8 hours a day on internet is just normal to me. Well, the website I most visit everyday is.....

https://www.facebook.com

Yeah, that is it. I guess nowadays, no one don't know this website. Facebook is known as social networking site which popular in all around the world (ps: except for Mainland China I guess). It enable people from all over the world get together, it enable people who lost contact for a long time reconnect, it enable friends to keep in touch. It is a platform for getting know more people, to maintain relationship, as well as act having meeting or discussion online via video call function on facebook or its private message chat system. Well, for me, facebook did acts not only a social networking site, it is also a platform for me to start-off my online business. I co-operate with my friend and selling sticky candy online. Besides, we also start a store which sell accessories for mobile-phone, smartphone even tablet.It enable to earn some pocket money via these online booking, transaction or much suitable, e-commerce.

Did I only access to facebook? Of course, it is not. Apart from earning from facebook, i did join some website to earn money as well. One of them is..... is.....

https://my.ipanelonline.com

Yeah, this is the one. myipanelonline.com This website is basically a website where earn from doing some survey. The admin will give point to us where we can accumulated from doing some corporate survey or from recemmending other to join the group (affiliation fee). 1000 points equal to RM10. By recommend 1 person, i can get 300 points where survey's price is depend. It is from 300-1000 points for each survey. Even though I didnt earn much from this, yet, it is an extra income for me. Therefore, I will frequently visit it. At least I can get RM100-RM200 from this.

Besides, I am like all other computer users. I like to have entertainment. I visit youtube as well. I believe most of us known this website....

https:www.youtube.com

That is it. Youtube. Broadcast Yourself. It is a website which falls in category of P2P type of e-commerce. People can upload their video clips, movie, MV on it while other people can download it from the folder. I like to access to youtube even though there is some negative stuffs found on it. I saw some funny video clips which may chill my day, I download some lecture video taken which posted by wither lecturer or student. I learn a lot from it even though we couldn't see the real thing. Free, convenience, fast. I am just feel so glad to live in a century with such technology. Thank god.

https://www.groupon.my

For me, Groupon.my is the most frequent online buying website i visited. I like to glance through the website even I have no or only little budget. I have bought some voucher for food from this website which make me save some money as this website always offer deal with discount. I have no need to spend my time travel to the place to buy. It is just a great place for me because it not only offer voucher in Klang-valley area, it also cover some shop lots in Penang, Johor, or even Kuching. Besides, I also purchase hotel voucher when I went to Kuching last semester break.

Well, initially, when people think of internet, sure they will link it to email. Well, I have open an account as well. That is it..

https://www.hotmail.com

Windows Live Hotmail is always my choice. When I first step in University, I realize the use of hotmail. I used to think this is only to help me to get an account on facebook. Yet, I change my mind when come to exchange information, document. I am glad to have this mail system because it enable us to send assignment within our group, personally, I get my part time job done successfully through this mail system. I am actually a part time translator, the person in charge send me a English version comic and I send back to her in Malay version. By this, the document can be sent easily and save our postage fees.


Anyway, as a 20 year-old people, who live in 21st century. I am just glad, feeling good to being myself.

H3LLo Ev3rY0NE~!

“Although it has been experiencing a lot of frustration, but I believe I will be able to stick to the end and achieved my dream!” - This is what I always believe in and talk to myself to reminding me every moment in my life. Is this called as motto as well? I think so.

Hi, everyone! Who am I? My name is Lim Yin San, just an ordinary girl from Penang; you can call me - Icey. That is my nickname after I graduated from secondary school and step in to university life in University Tunku Abdul Rahman. “Icey” was found by me through online and it has created a lot of fun in my life. Just take an example, since my nickname - Icey is pronounced as “I say”; my friends are like to speak it in the other way round just like “oi seh” which means expert in anything. Sometimes, I felt speechless to them when they did this; but this is so called enjoy your life. Don’t you think? To have those friends who laugh on you when you do things careless; but lend you a hand as well when you facing problems. So, I appreciated that I have those friends who colouring up my life to make it become more interesting.

My hobbies are shopping, playing music instrument and swimming. Playing music instrument such as piano is one of the best ways for me to reduce stress on mid-term test, assignment, and final exam. It really works! I think it's just because of I am interested on it since I small. 

Besides that, I also like to surf websites. The following are the top 5 websites that i visited the most during my spare time:

1. 

http://www.facebook.com

The top 1 website should be Facebook, which is a famous network-site and broadly used by everyone. It’s useful for me to know the latest news about my friends located at different places and discussing any homework regarding the assignment with my group members.

2.

http://www.hotmail.com

I also visited to Hotmail which allowed me to check my mails from my friends or family members. It’s also an effective and save cost way for me to receive the folder of my assignment from my group members.

3. 

http://www.google,com

Google is also one of the top 5 website I visited the most in my daily life. I always use it to search for the information for my assignment or anything else that I want to know.

4. 

http://www.youtube.com

Youtube, which is a video-sharing websites, it allowed users to upload, view and share the videos. I always visited to this website to watch the videos for my entertainment. However, it’s also useful for my education purpose. For instance, I searched for the information for my study; and there will be a person teaching me inside the video clips.

5. 

http://www.taobao.com

Taobao is a Chinese language website for online shopping, similar to eBay. I always visited this website to updates myself and searched for the new design of clothes at the current period. It’s also considered cheaper as compare to buy in the shop lots.

The top 5 internet activities that I always do are chatting, online shopping, download new songs or video, checking mail, and search for the information.

That’s all for introducing myself. I will update our blog frequently, please come and visit our blog.

Thank you!

Hello!

Hi! I'm Jia Le, currently studying in university. So, can you guess how old I am? If you ask me what kind of person that I am, I'll tell you I'm just like other girls, nothing special. I do what a normal girl does, such as shopping. I like to shop, especially window shopping. Usually I'll shop for books, those little presents, but I don't like to shop for clothes, shoes and bags, am I kinda weird? I enjoy studying, also enjoy playing or outing with my friends, and I remember what my lecturer told me, "study hard, play hard." I love swimming although I'm not that expert in it. Swimming in cold water on a super hot day is cool and nice. Music, hearing those classical music, county music, is very enjoy and relax.

In this new era, people spend a lot of time in front of the computer everyday. Some used computer for studies, some for conducting businesses, some for working purposes and some for fun. The top 5 websites I used to visit are...

I think most of us know this website, Facebook. As what my friend said, it is a social networking site which connects people all around the world. It allows us to share photos, thoughts, videos, open up polls and many more. For me, I first set up an account for Facebook was for our secondary class page, which my classmates can keep in touch with each others, contact us for any activities. Since I study in university, the main purpose of Facebook to me is to discuss our assignments. We can discuss online by using message chat system rather than installing a chat messenger. 

This is one of my university's website. It is a web-based learning environment. It enables me to download files that lecturer uploaded, such as lecture notes, tutorial questions. We can post our questions in the forums and our lecturers will try to solve them. I used to check for updates and download files at least twice a week. 

Windows Live Hotmail is a free web-based e-mail service. I used to check e-mails that others sent me. While doing assignments, we use Hotmail to exchange our assignment files, documents. I can also chat with my friends using the instant messenger system.

Do you know what this website is? It is www.outspark.com , a website that we can play games. It offers some MMORPG (Massively Multiplayer Online Role-Playing Game) games, webpage games and some flash games. During rest time, I'll play some games to relax myself. I met some new friends while playing games, and most of them are foreigners. We used to talk about our countries, the scenery, the places worth to be visited. 

Do you like history? I think many people don't like it. History, I love it. I used to visit this site to read some history, mostly will be the history about ancient Egypt. I like to read about the history of the ancient Egypt kingdom, architectures, cultures and religious activities, the mysterious pyramid, Valley of the Kings, those temples with kings statues, the pictures of the monuments and others. Sometimes, I'll read about the history of other ancient kingdoms such as ancient Maya, Rome, Greece.

Didn't notice that I already typed so much, I think I'll stop here. 

By the way, I'm 20 years old. Do you guess correctly?

Myself

Hi, everyone. I am Wong Jia Xin and most of them called me Janice too. Well, I come from a small family with 5 members who live in Bukit Mertajam, a small town in Penang. I took my foundation at Kampar campus of UTAR once I get my SPM results on year 2010 and now I am studying Bachelor of Accounting in UTAR at Sungai Long campus which near to Kajang area. My most enjoyable hobby is sleeping since I used to sleep for more than 7 hours per day. Besides that, it makes me feel relaxing and calming while on the bed. Apart from that, I started to swim and it becomes part of my hobby too since I moved in to hostel near my university. Swimming will always be my first choice whenever I am stress or in a bad mood although I am not good in swimming.

Nowadays, almost every household own at least a computer with internet access and it could be inconvenient if without having it. We need to make transactions, booking, downloading and etc and it is necessary for those online businessman because they need to serve their clients everyday through computer with internet.

The most websites I visited is www.facebook.com. It is a social networking sites for me to know what's my friends doing and how their life recently. On top of that, I may also have discussion regarding assignment with my group members in a closed group since almost all of my friends have an account. Nowadays majority of online businessman also conduct their business through this social networking sites as it can connects people all around the world and can be considered the most cheapest ways to form a business.

As for students like me, I have to download the documents given by my tutor and lecturer so that I can have the materials to study and so, www.utar.edu.my is one of the most websites I visited every day. I can further access into it to get more information and announcement through UTAR portal and UTAR web-based learning environment (WBLE).

To update my information about the latest news, www.sinchew.com is my choice to browse. I can browse the sin chew online web to watch the latest news everyday without buying the physical newspaper outside since it is convenient for me to just open my laptop early in the morning to see the news instead of going down the market to buy it. By reading the news, I can upgrade my knowledge, my information and my alertness towards the situation that happen all around the world.

 In addition, www.google.com is also one of the most websites I visited. It is an useful searching engine tools for me to search information. Checking on my Google mail is a necessity and can be considered as part of my to do list since it is important for me to check on my mail every day so that I can get the most latest information from my sender. Moreover, we can also know some promotion through email and is convenient for me who checked their mail every day.

     Last but not least, www.my.com.my is one of my most visited websites as well.I love music and likt to listen especially during night time. The DJ's voice of MY FM, Jason, makes me feel good in mood every time I listening to his voice and sometimes probably would need his voice to be with me while I am in a bad mood. Furthermore, I love to listen to this radio station as I can get the latest song from it. 

That's all for my part of introduction towards me... Thank you... =D