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Revenue structure of Internet sector

June 22nd, 2013

e-commerece-RevenueE-commerce continues to grow at a healthy clip and is making what seem to us to be irreversible advances in terms of percentage weighting of household consumption. This appears to reflect growth in the installed base of always-on Internet devices. Smartphones and tablets have been taking over from PCs as the key drivers of Internet use since the late 2000s.

The Figure on the Side Shows the e-commerce companies by category. They all have different business models, but mainly use the earnings model below, based on the psychological processes involved when consumers purchase goods or services (using the acronyms

(1) Advertising
a. Impression
b. Pay per click
c. Pay per result
d. Fixed amount, campaign
(2) Commerce
a. Contract fee from the shop
b. User fee (fixed, per use)

Data Suggests a steady increase in the amount of time spent on the Internet and Money Spent on e-commerce sites in the last 10 years.

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