Digital Business Revenue Models + YOUTUBE VIDEO

Froggy Ads 2021

Amazon

Amazon is one of my favourite websites up to date. Everything you could imagine; they would have the products for you. With that being said, Amazon has rapidly established itself as one of the most successful digital businesses in the world, selling basically everything from books to furniture to food on the website. Starting as a bookstore, Amazon expanded and provided a marketplace space for both buyers and sellers.

So, what makes Amazon so successful?

Let's look at Amazon's business model.

Amazon has grown into a complex digital ecosystem with a portfolio of business models. Amazon's business model initially was based on eCommerce and now incorporates cloud computing, entertainment, music, meal deliveries etc. (Fox 2020). 

Business Strategy Hub 2018

The image above shows the business model canvas for Amazon. This entails the basic framework of the organisation's key aspects, values and structure which what make Amazon the business they are today.

Now, let's look at Amazon's revenue model.

We all know that the online store is a core part of the business's operations and income, but there are a number of ways Amazon generates high revenue.

Business Strategy Hub 2018

• Commissions - Amazon receives commissions from their borrowers and sellers. 
• Affiliate Programs - Amazon provides affiliates with stores within their sites and charging a large commission on their sales.
• Advertisements - Amazon allows advertisements on their website since they receive so much traffic, sellers can advertise to gain sales.
• Subscriptions - Amazon Prime is a fixed subscription entitling fast delivery and access to stream movies which helped in repeat and loyal customers
• AWS - Amazon owns a cloud infrastructure with high margins which helped Amazon's tech infrastructure

(Cuofano 2019) (Juneja 2016)

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OzSale 

Until today, I have never heard of OzSale. So, I did some research and found that OzSale is a membership-based online shopping outlet operator, selling a variety of different products and services through flash sales. The categories include clothing and accessories, footwear, beauty and home and living. Although they are not big and known internationally like Amazon, OzSale is a successful digital business in Australia.

Let's look at OzSale's business model.

I completed OzSale's business model using the template. I figured these were the main values OzSale had in their structure.

Now, let's look at Ozsale's revenue model.

The main sources of revenue come from mostly Australia. There is little to no evidence on OzSale's revenue model so I assume these are the sources of income.

• Commissions - OzSale receives commission from goods sold from supplier products
• Web Sales - OzSale receives money from selling goods
• Email Subscription - OzSale 

Some revenue models I would consider for OzSale is incorporating external advertisements on their website for another source of income. Using Google AdSense and strategically placing them on the website is the most simplest way to initiate ads (Founder Institute 2021).

Looking at both Amazon and OzSale's business and revenue models, we can see a difference in an international big brand versus a domestic big brand. Amazon has more sources of income and a more complex business model, whilst OzSale has several points of income and a simple business model. OzSale's 

YouTube Video

For the second task, I decided to film a video on this green eyeshadow look. Makeup has been one of my hobbies and passions from the age of 15. I mainly learnt makeup tips and tricks from YouTube and TikTok videos and from then on out it was a self learning process. I was never good at the start of my makeup journey but now I feel like I have mastered it. So, I thought it would be nice to show you guys how I do my makeup. I normally wear natural makeup, but for this task I wanted to explore with colour. With that being said, I hope you enjoy this video!

References

Business Strategy Hub, 2018, Amazon Business Model, viewed on 21 August 2021, <https://bstrategyhub.com/how-does-amazon-makes-money/>

Cuofano, G, 2019, How Amazon Makes Money: Amazon Business Model in a Nutshell, FourWeekMBA, viewed on <https://fourweekmba.com/amazon-business-model/>

Founder Institute, 2021, Founder Institute, viewed on 21 August 2021, <https://fi.co/insight/the-10-most-popular-startup-revenue-models>

Fox, G, 2020, Amazon Business Model, GARY FOX, viewed on <https://www.garyfox.co/amazon-business-model/>

Froggy Ads, 2021, 4 Easy, Safe, and Effective Ways to Increase Sales, Froggy Ads, viewed on 21 August 2021, <https://froggyads.com/blog/4-easy-safe-and-effective-ways-to-increase-sales/>

Juneja, P, 2016, The Business Model of Amazon, Management Study Guide, viewed on <https://www.managementstudyguide.com/business-model-of-amazon.htm>

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