Long Tails on the Internet
These products are known as products that are at the end of the tail or the Long Tail products. Suppose we have a video club that is comprised of a catalog of 5,000 films that correspond to 1000 different titles. If we see daily sales statistics we find that in 100 films sold to date, some 50 members of the 10 titles superestreno and 50 other members of about 40 titles that are documentaries, classics, independent films, ie not as well known titles. The Long Tail invites us to identify those 40 rare titles that originated the other half of sales. The Long Tail in e-commerce e-commerce portal Amazon gets 50% of their income from book sales from titles that are not the usual blockbuster. Why people buy on Amazon? Is it because they can get some titles of books in any bookstore in the street are not available.
Another good reason to buy on Amazon is their competitive prices direct result of its low cost of storage. This cost reduction is possible only through its Internet business model based on the Long Tail. Internet has enabled many companies realize the benefits of the Long Tail. The first requirement for applying this theory is based on the creation of a wide range of products. To get rare products we have many stock. For a retail store having a wide range of products is synonymous with higher costs of storage. For a Web site storage costs rarely grow in large proportions with increasing stock of products.
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