Comments on: Strategy & Innovation Forum: Monetizing the Long Tail http://blog.shop.org/2008/01/23/strategy-innovation-forum-monetizing-the-long-tail/ This blog is for the members of Shop.org Wed, 08 Feb 2012 12:59:32 +0000 hourly 1 By: Brisbane Marketing Consultant http://blog.shop.org/2008/01/23/strategy-innovation-forum-monetizing-the-long-tail/comment-page-1/#comment-115280 Brisbane Marketing Consultant Thu, 07 Aug 2008 22:46:39 +0000 http://blog.shop.org/2008/01/23/strategy-innovation-forum-monetizing-the-long-tail/#comment-115280 I suspect the long tail only works for products with near-zero holding costs. Digital products fit this description. I've noticed that the long tail does work quite well with very targeted blog posts. You may only get a few visitors per day for each post, but if you have enough posts attracting those visitors via search engines, the traffic does build up. Product reviews do generate sustained traffic over time. I suspect the long tail only works for products with near-zero holding costs. Digital products fit this description.

I’ve noticed that the long tail does work quite well with very targeted blog posts. You may only get a few visitors per day for each post, but if you have enough posts attracting those visitors via search engines, the traffic does build up.

Product reviews do generate sustained traffic over time.

]]> By: Brian Elliott http://blog.shop.org/2008/01/23/strategy-innovation-forum-monetizing-the-long-tail/comment-page-1/#comment-79117 Brian Elliott Thu, 10 Apr 2008 05:16:26 +0000 http://blog.shop.org/2008/01/23/strategy-innovation-forum-monetizing-the-long-tail/#comment-79117 Agreed in part with Customer Experience's comments. Unless, of course, you have no inventory carrying costs because you don't carry inventory -- like Alibris. If your systems are all geared towards total control of your SKUs, you absolutely bear more costs. So how much control are you willing to cede to get greater selection? Agreed in part with Customer Experience’s comments. Unless, of course, you have no inventory carrying costs because you don’t carry inventory — like Alibris. If your systems are all geared towards total control of your SKUs, you absolutely bear more costs. So how much control are you willing to cede to get greater selection?

]]> By: Trukadero http://blog.shop.org/2008/01/23/strategy-innovation-forum-monetizing-the-long-tail/comment-page-1/#comment-48855 Trukadero Thu, 24 Jan 2008 23:07:43 +0000 http://blog.shop.org/2008/01/23/strategy-innovation-forum-monetizing-the-long-tail/#comment-48855 Kudos for using "The Long Tail", "Wisdom of Crowds" and "The Paradox of Choice" in the same article. This ought to affect your Page Rank favorably. Kidding aside, I was having this very conversation today at lunch with colleagues; how increased catalog choice matters more in the real world (jeans on the rack) than in the virtual world (the fact that the eMusic catalog doubled over the last year did little to clutter their homepage). Truk Kudos for using “The Long Tail”, “Wisdom of Crowds” and “The Paradox of Choice” in the same article. This ought to affect your Page Rank favorably.

Kidding aside, I was having this very conversation today at lunch with colleagues; how increased catalog choice matters more in the real world (jeans on the rack) than in the virtual world (the fact that the eMusic catalog doubled over the last year did little to clutter their homepage).

Truk

]]> By: Customer Experience http://blog.shop.org/2008/01/23/strategy-innovation-forum-monetizing-the-long-tail/comment-page-1/#comment-48717 Customer Experience Thu, 24 Jan 2008 19:01:45 +0000 http://blog.shop.org/2008/01/23/strategy-innovation-forum-monetizing-the-long-tail/#comment-48717 The mistake that is made, as is often made when talking about the long-tail is that the long-tail does not necessarily drive higher margins. Inventory carrying costs are higher because of slower turning items. Purchase order costs are higher because of lower purchase quantities per purchase order. Import costs and inbound freight costs are higher because of lower purchase quanitities. So, while prices might be higher on the long-tail, costs are higher as well, which may actually result in lower margins. The mistake that is made, as is often made when talking about the long-tail is that the long-tail does not necessarily drive higher margins. Inventory carrying costs are higher because of slower turning items. Purchase order costs are higher because of lower purchase quantities per purchase order. Import costs and inbound freight costs are higher because of lower purchase quanitities. So, while prices might be higher on the long-tail, costs are higher as well, which may actually result in lower margins.

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