Amazon is the ecommerce titan the industry has been waiting for. Net sales have been rising since 2014. In 2016, Amazon grabbed 70% of the total sales, and service sales have only been growing since then. For all those wondering is ecommerce profitable, the answer lies in Amazon’s undeniable success, so much as that the “Amazon Effect” has even entered the lexicon of industry analysts. In terms of operating income, growth has been driven by high margins from service sales. Revenue sources, AWS services and Amazon subscriptions have been rising at phenomenal rates, too. A revenue generation model is a critical component of the ecommerce business plan. Anybody looking to understand how to start a successful ecommerce business needs to understand that making money is the key to thriving and not just surviving. The ecommerce business model unlocks value and is the key driver of value. It makes all the difference between a unicorn and a failed start up. Scaling up to a billion-dollar value is a dream come true for many ecommerce businesses. For understanding how ecommerce businesses make money, business models offer further clarity. 

Answer ALL the questions in this section. 

QUESTION 1 The article above states: “A revenue generation model is a critical component of the ecommerce business plan”. Explain the conflicting issue associated with the use of all revenue generation models and FOUR (4) solutions that may be used to resolve this issue. 

QUESTION 2 The article above further states: “Amazon is the ecommerce titan the industry has been waiting for”. Describe TWO (2) major challenges of adopting online advertising as the sole revenue.

BALANCE SHEET SUMMARY FOR JOSEPH AND ELE FARMER Line Number 2 3 10 11 12 13 *2262 263 2 34 15 16 17 19 20 21 22 24 25 26 27 28 29 30 31 32 33 34 35 36 Assets Current Assets Cash, savings and mate securities Craps, feed and supplies Market livestock All other current farm sets All personal asets-cument Noncurent Assets Breeding livestock Machinery and equipment Ferm real estate Other noncurrent All personal ats-oncurrent Total Noncurrent Assets Total Assets Liabilities Total Current Assets Current Liabilities Operating short term notas Current maturities Accounts payable All other current labilises All personal liabilities- current Total Current Liabilities Noncurrent Liabilities Non-real estate farm debt Real estate farm debt All other noncument liabilities All personal liabilities- noncurrent Total Noncurrent Liabilities Total Liabilities Owner Equity Contributed capital and retained earsings Valuation/personal asset equity Total Owner Equity Total Liabilities and Owner Equity Balance Sheet Notes Book values (original cost less accumulated depreciation) Breeding livestock Machinery and equipment Real estate-land Real estate-buildings Farm assets Farm Farm equity 2007 Eabilities 100044 94,605 29,740 $260,342 144.000 239,109 387,593 12.500 48.000 $734,001 5994,423 $17.951 S 14.050 S 13.320 116,912 109.652 85,595 $2,100 44,700 45.570 596.312 26,787 8.799 2008 $340,043 $554,168 5373,181 67.075 $440,256 5994,423 Hatorical $92,350 20,973 12.450 81,437 77.356 750 750 $214,125 $ 211,879 $86,800 $ 65,864 241,787 9,456 0 231.750 17,247 2009 4,83 5 123.222 72.350 75,914 47,340 51,109 S 263,257 5 256,442 $ 291.775 $ 321.225 12.500 48.000 5 766,004 $1,029,340 $35.000 228.100 350,000 12,400 $46,000 239,139 419,595 945.623 553,418 392.206 $ 318,061 $530,740 $44,000 231,100 470,100 12.500 48.000 $ 808.500 $1,067,142 $399.528 98.237 $ 498,600 $1,029,340 2010 $35,000 222.350 350.000 1 30,000 960,540 529,990 450.550 S 46.000 221,310 495.900 31,337 9,380 76.590 750 $ 212,407 $ 41,057 S 229,220 30,440 2011 Preforma $92.350 $ 79,420 5 36.509 12,593 141,475 $ 300,717 S 513,124 $ 400.008 151,010 $ 554,018 $1,067,142 12.500 48.000 $ 828,010 $1,017,655 $1,119,785 $1,338,879 46.000 334.620 573,735 12.500 45.000 83,375 47,09% 483 4.447 750 420 79,520 750 s 196679 5 222,153 27241 5 222.357 35.822 87.632 214.519 56,151 $ 285,070 $ 358,302 $ 481,740 $ 180,454 $ 465,4$ 504,572 172.538 253,854 $ 638,036 $758,425 $1,119,705 $1,338.479 35,000 193,800 283,000 350.000 350,000 30,000 -30,000 1070.985 1.290,079 480 999 579,704 589,986 710,375 $35.000 $ 35,000 $ 200,000 350.000 10,000 1.018,342 512.374 505,968 65