Long Tail

Customer side challenges

make the mass amount of products accessible through "active- and passive-search"

Supply side drivers

- no need to allocate costly physical shelf space - shops do not have to be close to the targets - some products can be distributed online, so called ODC online deliverable content (music, ebooks) - no warehouse needed, instant distribution physical stores serve mainstream consumers, while longtail retailers serve broader audience and fullfill individual needs.

How does the experience of users leverage the effects of the longtail

Due to positive feedback or second orders by customers

Whats the basic concept of the Long Tail

Instead of focusing on the mass market, the long tail implies selling a broader range of (niche) products regardless of their popularity

How do products contribute towards revenues in traditional brick and mortar stores, in contrast how is it in a "long tail business"

Wal Mart makes 80% of its revenue with 20% of its products. Amazon.com makes 30-40% of its booksales outside the top 100.000 boooks.

How can the longtail change how profitable products are

access to a bigger market increases sales of certain products --> niche products will get sold more often and therefore they can become mass market products.

Whats the advantage of online deliverable content, how does this relate to the longtail concept?

each product is just another database entry, costing effectively nothing. Due to this, it's even easier to offer a broader range of products and therefore serve more niches.

What is active search?

provide tools that enable customers to comfortabley find products they are looking for (improve the search function)

What is passive search?

provide tools that enable customers to explore products they were not looking for but that might be of interest to them (recommendations)