Revenue model

Google offers targeted advertising solutions and global Internet search solutions. Its principal products and services include:
1. Google Ad Words is a pay per click advertising program of Google designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer. When a user searches Google's search engine, Google generate most of the revenue from Google AdWords. It is an online advertising payment model in which payment is based on qualifying click- throughs. An advertiser has to pay every time his ad receives a click.

Amazon’s revenue model include
1) match-maker model (transaction fee) are based on the net revenue or the commission it receives from the product's sale. The fee is levied to both the supplier and the buyer.
2) distributor model, the intermediary takes ownership of the product. It realizes the total revenues it gets off the product's sale. Supplier purchases a product for $1.00 and resells it for $2.00. The $1.00 is the supplier's margin before costs. Once cost is factored in, however, the gross margin can be substantially less. Amazon.com is a typical example of this model .

Ebay.com is an internet auction site that connects individual buyers and sellers worldwide. It offer a broad of product category with different technology platforms (e.g., auctions, classifieds, payments, VoIP).It also provides technology platforms and tools for e-commerce and doesn’t have inventory like Amazon.com (AMZN), a leading e-commerce retailer. As a result, eBay is a highly profitable company with a 33% operating margin in 2006, in comparison to Amazon, which realized an operating margin around 4.

Yahoo! One of E-commerce success story

Yahoo! is an Internet communications, commerce and media company which offers a comprehensive branded network services in global trading. It was founded in April 1995 by founders David Filo and Jerry Yang.

www.yahoo.com is the No. 1 Internet brand globally and reaches the largest audience worldwide, it leading guide in terms of traffic, advertising, household and business user reach. Today, Yahoo! has offices in Europe, Asia, Latin America, Australia, Canada and the United States The company also provides online business and enterprise services designed to enhance the productivity and Web presence of Yahoo!'s clients. These services include business Yahoo! And electronics catalog.

An electronics catalog display photos and information in an electric form, which provide products information and provides a met customer to places orders. It reduces company operating and distribution costs of the businesses and provides products and services to the customers sitting at home at any time .Thus, company hold fewer inventories than the traditional stores in the market. Besides, most of e-commerce company is sending the catalog to the customer, will encourage customer visiting company’s website anytime. In addition, through online bartering two parties strike a deal to exchange goods or services without money changing hands.

Yahoo! service offer value to all buyers or sellers and build a strong relations with customer. It offer a variety of product items such as electronic item(video,music,automobile,households,gifts,software,hardware,kitchen utensils)It therefore contains items related to all ages, all interests and all fields as well as all areas.











Recently, Yahoo! introduces new Web (Yahoo! music and Yahoo! tech) to keep the customer coming back and built a strong communication with each customer.

History of E-Commerce
The time before information technologies had been explore, transactions between sellers and buyers are through face to face. There are a lot of problems and disadvantage were happened between the transactions. Nowadays, information technologies had help the growth of business.

The most interesting and simple hobby for female, even for a male, which i think is shopping. By having the evolution of information technology, we are able to enjoy shopping through the web. We are able to shop in anytime, anywhere, even in your pajamas. Now, this bring us back to the invention of the very of notion of " sell and buy" electricity, cables, computers, modems and the internet of course! Started in 1991, it was made possible to do shopping online and since then, hundreds and thousands of businesses started to venture into this promising approach-the E-commerce.

Before i going to describe about the evolution of E-Commerce, let me briefly explain what actually is E-Commerce. E-Commerce can be described as the process of buying, selling or exchanging products, services and information via computer networks. That's what is described in our text book. In the simple words, E-Commerce is the business transactions conducted through the Internet which are faster and more efficient because traders can reduce operational cost as well as transaction and delivery time. E-Commerce is a transaction process with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. These technology was found in 1970s and able a lot of business and organizations to send commercial documentation electronically.

E-Commerce has become popular among the general public in 1994. It took almost four years to develop the security protocols (for example, HTTP) and DSL which allowed rapid access and a persistent connection to the Internet. By the way, the way of E-Commerce are changed in 2000s. The process of E-Commerce were able the consumer to purchase for the available products and services by using the secure connections and electronic payment services. Over the expanding of E-Commerce, by the end of 2001, the largest type of E-Commerce is B2B(Business-to-Business-Consumer) model. There were around $700 billion in transactions.

Two of the first online purveyors were, of course, eBay and Amazon.com which are the first Internet companies to allow electronic transactions. "They were the first ones to offer one-click ordering that people now expect to find. Although Amazon certainly had a lot of skepticism from the street as to when it was going to become profitable, the company kept at it.", said by Daugherty. According to the research conducted in 2008, the domain Amazon.com attracted about 615 million customers every year. One of the most popular and interesting feature of Amazon.com is the review system. It allows consumer to submit their reviews and rate for the products on a rating scale from on to five stars. Besides, Amazon.com also enables consumers to search for the desires books by key-in the keywords in the database through its clear and user-friendly advanced search facility. However, currently, the 5 largest and most famous world wide internet retailers are Amazon, Dell, Staples, Office Depot and Hewlett Packard. According to Fortune magazine, Dell has become the 3rd of highest revenues, profits gained in America through the annual rating, while Apple is the tops Fortune's annual list of America's Most Admired Companies in 2008. It can be seen that, Internet companies had growing faster and faster in nowadays.

However, the evolution of E-Commerce are never end although the environment around are keep changing.

History of E-Commerce is a history of a new, virtual world which is evolving according to the customer advantage. It is a world which we are all building together brick by brick, laying a secure foundation for the future generations. “Specifically, and important milestone in the evolution of e-commerce is the development of affordable, easy-to-use e-commerce solutions that have enabled hundreds of thousands of entrepreneurs to transform their unique ideas into organizations successful business.”, Rich Riley said.

The growth of E-Commerce had been improved as the time pass through. There is an example that i search through online search engine. A quick glimpse at the data promises much more evolution in the years to come. Forrester Research, for example, it is a technology and market research company that provides pragmatic advice to global leaders in business and technology. With hundreds of analysts and coverage areas, they are the only company that creates forward-thinking research specifically for your role in the organization. It predicted American firms alone would sell US$316 billion in goods and services via the Web by 2010. That figure would more than double 2004's online spending to account for some 12 percent of all retail sales, up from about 7 percent today.

In conclusion, E-Commerce is still in the active state in the Internet industry and will be expanded in the future. Besides the transactions of goods through E-Commerce, there are also a lot of services are provided. The services that allow us to surf and shop through the internet like new quantum processors that enable to increase the speed of computers as twice faster and HDTV's popularity which provides the service for visitors to surf their products, shop, and review their television sets. E-Commerce has bring a lot of convenience to us, also as an interesting and enjoyable hobby for us to shop through internet. Therefore, we should continuously to grow and innovate this beneficial process.

How E-commerce can reduce cycle time, improve emplyees empowerment and facilitate customer support?

In the business world, time is money. Cycle time can be defined as the total time that is takes to complete a recurring task. An example would be the total time spent starting from the point where an order is received from the customer to the delivery process and the final transaction. E-commerce allows people to carry out business without the barriers of time or distance. It is a business which runs 24 hours a day and 7 days a week. Anyone can purchase or sell just anything with a click on the mouse. The benefits that e-commerce delivers are it is convenience, fast, and low cost. This can greatly reduces the cycle time for the whole process.

Employees empowerment in e-commerce is the ability to make decision for customers. Given the flexibility to access the internet to search for various information, employees are able to improve their empowerment. Thus, they will be able to handle complaints instantaneously and efficiently. Only with that, they can easily convince the customers to stay with the services that their company provides.

In addition to that, e-commerce can also facilitate customer support because of the unlimited time for the customer to shop online. E-commerce facilitate customer support by providing a wide range of technological solutions and communication opportunities. Whatever inquiries or complaints can be handle on the spot. Other than that, customer can always drop their recommendations on how the services can be improve. This can retain customer by satisfying their needs, which is the core of customer service.