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Leveraging the long tail

The long tail has been popular in recently and also it describes retail strategy of selling large unique items with small quantities. Even-though there were number of participants in the Web has increased and  unique phenomena have been observed. So Long tail was one of them. This term of “Long tail” was popularized by Chris Anderson in October 2004 in Wired magazine article. He mentioned Apple, Netflix and Amazon as examples of business which are applying to this strategy.

Besides, the Long tail describes as “the total sum of something with general characters “The Head” could be less than the total sum of something with unusual characters “The Tail”. That emphasis importance of the Tail. For an example, Five people will get a job when they graduating from university. On the other hand, two people continue their studies, three people start their degree, two people will staying at home and do nothing and three people will get married. From that situation, most of the people get a job after graduating from university.

So, number of those people is less than the number of the others because of the number of others who will not get a job is ten in total. Thats the Long Tail concept. How ever, there were few concept of Leveraging Long Tail. There are,

Forces in long tail

Web 2.0 firm has to make a strong long tail through the production, distribution and demand.

Data management 

This is an important part of long tail, because of focusing small amount of customer and specific requirement, data would be huge and more complex than big customers.How ever, the demand from small amount of customers or suppliers have to be researched by data domain.

Customer management

Long tail have large number of customers who has different background and demand. So that, architecture has to be manage by customer and filter illegal an inappropriate content is necessary. Also, firm can check the content and customer classification for detecting the risks.

Leverage on-line product and inventory cost

Web 2.0 application has to pay more attention to do aggregation and also integration of online product and keep the lowest inventory cost.

Etsy Website 


This web-site implements the Long Tail theory. Etsy is an international web-site, which has over 150 countries users. This web-site allows user to buy and sell products in three ways, which are hand made, non-hand made products, commercial products.

However, easy to buy a product in Etsy. So user to has fellow few steps to buy the product, which are searching a product typing a keyword in Etsy search engine. Also user can abel to check the location and check the previous comments. Then user can add to the cart if they happy and after reading some relevant feedbacks from previous buyers. Pay the amount using credit card or PayPal.

But, Sell a product in Etsy is  different from buying process. So user has to fellow simple three steps. User has to create a profile and add a item into their profile and allocate a price for that item or product. Second, wait for buyer’s payment and finalised the payment. Finally stage was shipping the product to the buyer.

Apart from that, Etsy web-site is limited and restricted web-site comparing to other famous online trading web-sites such as Ebay and Amazon websites. In Ebay web-site user able to bit for the item.

References

Anderson., C(2004). “The Long Tail” Wired. by 30th of April, 2012

Etsy Retrieved from www.etsy.com by 30th of April, 2012

 
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Posted by on May 1, 2012 in Long Tail

 

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