E-Business Revenue Model

Running Head: E-BUSINESS REVENUE MODEL
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E-BUSINESS REVENUE MODEL

E-BUSINESS REVENUE MODEL
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E-commerce business is referred to vending, purchasing, and making the transaction on
internet in digital market. The product and amenities are presented by website, application, and
digital signage methods which are incorporated by the secured payment gateway by facilitating
financial transaction and product purchase. The front end of the organization is as important as
the back end. E-commerce organization plans revenue models in many ways. E-commerce
businesses have become more elastic and broader. E-commerce business revenue model has seen
the high level upsurge through the technical advancement, online spending, digital space, and
opened flexible options to reach out the customers (ZeePedia, 2020).
E-commerce revenue model is considered to classify E-commerce trade as revenues
present the whole amount of money which is received by organization after the trading of
product and services with the customers. There are many options from which revenue can be
made through affiliate marketing, advertising, subscription and many more. Industry never limits
upcoming new ways to generate revenue. Following are the E-commerce business revenue
models used by organizations in K.S.A.
 Advertising business revenue model
Commission charged to promoter to put advertisement in appropriate online marketing platform
(Smith, 2020). It is classic principle which is followed for the business categorization, for the
advertising business revenue model. It help to take the advantage of high traffic that
continuously visit to chosen platform regarding shopping, see the advertisement and redirected to
real site. It is related to increase the leading way of business such as Haraj, Souq, and Cobon.
The disbursements are made to host platform which are based on the permanent commission or
decided according to the traffic density.

E-BUSINESS REVENUE MODEL
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(Huang, and Benyoucef, 2013)
Advertisement business revenue model has the advantage as present the indirect way to earn
revenue by digital platform and conventional way to put advertisement by including the display
marketing and include the banner, wallpaper, and rectangular advertisements. The structure of
the income is based on invoice raised against cost per action. The continue display of marketing
strategies have the objective to address from where traffic coming on Ecommerce platform and
linked to the search engine marketing and affiliate marketing. Google AdSense is effective
option which allows placing advertisement by Google search engine and allowing to bringing
business site to top of the search results while searched through related keywords. Similarly
platforms such as Facebook allow to displaying the advertisement on the basis of Cost per Mile.
Advertisement business revenue model has the disadvantage as increase the production cost with
no assurance regarding income and click by ratios are very low, that contribute to the falling
values of advertisement. It is very important to have the large and loyal following to the
command higher compare to the rates of market. Research presents that consumers tune out to
many advertisement forms on platforms (Al-Mudimigh, 2015).
 Subscription business revenue model