Generate Money Online by following these website’s money-making model
Everyone wants an extra income to meet their needs and upkeep their standard of living. Furthermore, buying and selling of goods and services via the Internet is the new trend to earn Money. E-commerce websites are offering a free platform to the sellers and the buyers to get in touch with each other. One can easily list their product on e-commerce websites and potential buyers can buy the products hassle-free. The whole online buying and selling chain appears to be a very easy and economical process. Although, you must have wondered as they offer free services to the sellers and buyers then how these e-commerce websites like OLX, Quikr, Craigslist, and Gumtree make money online?
E-commerce websites, such as OLX, Quikr, and other leading sites provide an online portal to advertise any product and find the buyer for them. Almost all the emerging e-commerce websites offer free services to the users. However, they still make high tech TV commercials and disburse a lucrative salary to their employees.
So, let’s get the answer by analyzing the revenue generating strategies of a few leading e-commerce websites and comparing their revenue plan with each other.
OLX is a popular e-commerce website, where one can directly sell their old items to the buyer of their own choice. It offers a variety of features to their users, such as they can directly chat with a buyer, they can easily bargain etc. So, the OLX is offering a very well structural platform for both buyers and sellers. According to reports, OLX was competing with eBay India prior to its acquisition. Well, OLX is earning the generous amount of clienteles and making sufficient money to sustain in the market. OLX opts following methods to earn money:
GOOGLE ADSENSE BANNER ADS:
Google offers to all emerging e-commerce websites and other bloggers a very easy platform to get the advertisements. The Google AdSense is a platform, in which you can register your website and Google will automatically provide you the links to the related advertisements. OLX uses two Google ad units, one that is persistent throughout on the left side of the site and one right before the listings. It’s a pretty big, so OLX will be earning generous clicks. The earning through ads depends, upon the number of clicks they get. To estimate the amount of money that can be made by a site through Adsense this formula always gives a fair approximation.
No of Ad units x Total page impressions per month x 5$[CPM] / 1000
The other method of earning money for OLX is the Sponsored listings. Sponsored links are those links that you see before organic Google search results. They are always labeled as sponsored links. Google gives these e-commerce websites the chance to get the first position on a search result, as per their tagged keywords. The sponsored links appear before certain listings on the main site depending on the keywords targeted by the advertisers. Since the amount that each click earns depends on an auction in Google Adwords, then it would be very hard to make approximations or calculations.
OLX and some other websites offer a featured listing option to the sellers. In a featured listing, your ad will be featured up in the search list and your ad will be shown first to the buyers. Whereas, in a normal listing Ads are placed in OLX depending on how recent the Ad has been placed or the search terms used by the buyer. Featured Ads will always appear on top of the list irrespective of these factors.
These are their charges per Ad:
Home Page Featured Ads cost $9.99 per week.
Top of the Listings and Search Results Featured Ads cost $2.99 per week.
Quikr is yet another e-commerce, which is very popular in India and somehow looks same like OLX. Although, the company is very much apart from OLX. Where most of the e-commerce websites take the ads and featured listing path to make money, but Quikr follows the different route here. Quikr earns their money by the following methods mainly:
- Quikr makes the money by Paid listings for the customers. The customers who wants to sell their goods fast, can register themselves in a paid listing and their product will be shown in the top list with the Quikr recommendation.
- They also generate revenue by generating leads for businesses. Moreover, that makes a gainful amount of money for Quikr.
The Craigslist is a yet another very popular rental listing website. But the company doesn’t earn as much revenue when compared to other websites. The company only makes revenue equal to their operation charges. They charge $10 for a rental listing in New York and $25 for a job listing to occur in major U.S cities. If in San Francisco area, you need to pay $75 fee for a job to be listed. The company is trying to consider Google AdSense and paid advertisements to generate more revenue, but they are worried about the quality and clutter in website due to ads, which is their main priority.
Other Miscellaneous Websites
There are many other e-commerce websites present, like Gumtree and BookSellBuy. They also earn through a basic business model, that is by providing premium membership Ads wherein the features depend on their own model, by featured ads and paid listings. So, almost every website uses paid ads to generate money.
However, in our earlier article, we have also guided our valuable readers to make money online through Youtube and Instagram. But all in all, these are the methods of how e-commerce websites makes their money in a nutshell. As no company will reveal their real sources of income. But mainly we have covered all the points, which will help the new entrepreneurs to make money online.
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