Our E-commerce

Hi… today I would to share the various revenue models and compare the revenue model for Google, Amazon.com and eBay. Revenue models define as the techniques for generate of income from business activity. There is five type of revenue models available, 1) subscription revenue, 2) transaction revenue, 3) access revenue, 4) advertising revenue, 5) sale revenue.

First, I would like to discuss the revenue modal of Google. Search services and advertising are major way for Google to generate revenue. More than 90% of Google revenue is generated by advertising services. The principal services provide by Google include Google AdWords, Google AdSense, Google Answers, and Froogle.

Google AdWords provide advertising services. Advertisers select their own target keywords and only pay when customers click on their ads. Google AdSense is an ad serving program run by google. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google.

Google Answers provide internet user to ask questions, and offer a price for an answer, and researchers answer them. Google will keep 25% of the payment for each a question is answered. Froogle makes it easy for internet user to find information about products for sale online. It makes no commission on sales. Advertising space is available for purchase to be displayed in Froogle in the form of Google AdWords ad.

Amazon.com was one of the first major companies to sell goods by internet. Amazon started business as online bookstore but nowadays they become multi sellers. The product sell by Amazon include toys, computer software, electronics, DVD, MP3 format many more. Besides selling product, they also provide web services such as Amazon Simple Storage Services, Amazon Elastic Compute Cloud, and WebSstore. All this these activity are generate major revenue of Amazon

eBay is an auctioning collectibles and online shopping website. ebay allow buyer to browsing and bidding on item free for charge , but seller are charged. The charges are base on insertion fees, promotional fees and final value fees which are the main revenue of eBay. Insertion fees are charged when an item is listed on eBay, the fees is nonrefundable. Promotional fees are charged for additional listed options that attract attention for an item. Final value fees are a commission that is charged to seller at the end of the auction.

These three companies have showed a success in e-commerce by adopting different type of revenue model. Google are adopting advertising revenue model and access revenue model which can be show the major revenue of Google are contribute by advertising services. While Amazon.com are adopting sale revenue model by their selling activity throughout their website. On the other hand, eBay are adopting subscription revenue and transaction revenue by charging the seller on the item listed on their website and the commission charged on each completed sale transaction.

E-commerce is the process of buying, selling, transferring or exchanging products, services and information via computer networks. Cycle Time is the amount of time between a customer placing and order and receiving the goods. E-Commerce can reduce cycle time by using electronic devices to communicate internally between employees and departments, and externally between customers, suppliers, and other partners. The use of e-mail, intranets, or extranets helps speed the transmission of information.

Intranet is a corporate LAN or WAN that uses internet technology and is secured behind a company’s firewall. It operates as private network with limited access (only employees with authorization can use it). It usually contains sensitive information. Extranets is a network that uses a virtual private network to link intranets in different locations over the internet. It provides secured connectivity between a corporation’s intranet and the intranets of its business partners, material suppliers and customers. Access is also mostly limited and highly controlled.

Intranets or extranets give the company’s most updated information to employees. Employees can readily reuse information share information across boundaries. Online education and training help staff maintain, improve and expand their knowledge and skills to meet the requirements of a rapidly changing business environment. This creates a base of knowledgeable employees who make more informed, faster decisions. Better decisions increase competitiveness.

Consider the time it typically takes to respond to customer issues. Often, a customer contacts a support person, who then converts the line to business analyst, who would then contact someone in the IT department in order to run queries for the question at hand. The process takes times. By Publishing Frequently Asked Questions (FAQ’s) on a website saves customers time and money waiting on the phone for a response.


Automatic email responses provide customers with instant information to their inquiries. Customers also can know the latest promotion through company’s email. Normally, when you do online shopping, the description, reviews of products are shown in details. Customers can do comparison easily by using this information. For example, Dell only doing online transaction with customers. It allows customers to customize the computer they desired and also making e-payment. It offers a quick and ease way of transaction and maintain the business relationship with customers.

What is phishing? Phishing in this computer world is where perpetrator using fraud method and criminally and fraudulently steal people information such as username, password, credit card number, bank account number to invade other people privacy. It also can be defined as Phishing emails attempt to steal your identity and will often ask you to reveal your password or other personal or financial information.

How phishing works? The perpetrator carried out using email addresses and instant messaging. They will use fake website they have created instead of legitimate one to steal the information from people, the fraudulent email address that they have sent usually redirect to the perpetrator website which is fake so that it looks similar to the original website.

Many people may not know this website is fake or not, if they are lack of awareness, most probably they will fall into this trap.


The above chart showing that the phishing report between October 2004 to June 2005, it shows us that the phishing activities keep increasing!

The most common target for the phishing is Paypal, eBay and online banks are used to let the perpetrator commit fraud. I also have been phishing by one of the fraudulent email address(left image). I quickly reported to the paypal official website whether this email is real or not. The support team sent to me and said that this phishing email! Luckily I checked before I click on it!


There are many prevention methods to prevent or stop phishing, you can look for the paypal website to learn more about it. https://www.paypal.com/fightphishing
Microsoft also provide the method to fight for the spammers or phishing activities.
www.microsoft.com/protect/yourself/phishing/identify.mspx

Although internet has given us many convenience especially buying or selling goods or services, but the awareness must be taken into account so that you're not been cheated!

Labels: email fraud, phishing, prevention

E-commerce is basically the processes that are put in to place to support a company's business activity on the web or via other electronic means. It simply means that buying and selling things through internet.

History of E-Commerce also provides with important details about how Electronic Commerce began to be used as a popular online mean of economic exchange. Electronic Commerce refers to the online transaction of goods.

In year 1984, EDI, or electronic data interchange, was standardized through ASC X12. This guaranteed that companies would be able to complete transactions with one another reliably. In year 1995, the most two biggest companies that launched in e-commerce: Amazon.com and eBay.com. in year 1999, retail spending over the internet business reaches $20 billion and it is continue to grow!

The E-commerce evolved all thanks to the internet. Over the past few years, online business has been raised dramatically. People are now no longer going out shopping just to buy their desired things but through online, they can buy the things their wanted. Sites such as Amazon and eBay, is where people can shopping on the internet.

It is an important to have this knowledge that helps to understand Internet History better.

Labels: amazon. ebay, e-commerce, EDI, evolution, history, internet business

Self-introduction : Mr Chia
Hello everyone, my name is Chin Yong. I think that is nothing much about me because I’m always simple and kind. However, I’m going to introduce myself briefly. During weekend I like to watch movies or listen music to kill my idle time.

The top five website that I visit frequently are:

www.tom365.com – this website is get from my friend, she told me that we could online watch the drama, and the download speed is very fast, smooth, and the image is very clear. It is exactly true; I like this website very much so introduce to you all.

www.google.com and www.yahoo.com, this two search engines are quite useful

www.utar.edu.my – check all the information about my studies.

www.friendster.com – I usually visit this website and browse my friend’s account to see whether they have looked older than before.

During university life in Sungai Long, my entertainment has replaced by studies, most of the time, I go online are searching the information and chatting in msn at the same time. Sometimes, i will download the new songs and software as well. However, I discourage you to do so, because it is illegal activities. hehe....

At last, I hope all my dearest friends support our blog!! thanks you!