TulipTools Internet Business Owners and Online Sellers Community

Quote:By eliminating the physical constraints of shelf-space and inventory management, online retailers can offer a virtually unlimited array of products and services to an unlimited set of visitors — capitalizing on the niches that exist along the demand curve.

Many readers will recognize the familiar refrain of Chris Anderson’s Long Tail economics above — connecting the niche preferences of consumers with specific products that result in a more profitable online business. While these economics are theoretically what all online retailers are seeking, how can stores make this a reality?...

Long Tail economics demand a model that leverages a retailer’s Invisible Crowd, or crowd sources. This model learns from shoppers as they use a Web site, and identifies the natural affinities that emerge. Online retailers shouldn’t just focus on whether a shopper viewed a product, but whether they truly considered it, compared it and actually liked it...

Quote:Tapping into the Long Tail isn't just about adding more items to the menu. Research shows that shoppers feel overwhelmed and are less likely to make a purchase when confronted with too many decisions. The key is to target a smaller set of products to the right people at the right time.

One school of thought believes the problem can be solved with another round of personalization, profiling and behavioral targeting. The concept is to target products based on individual browsing history together with demographic information.

The latest social science research, however, has proven this thinking is flawed. As it turns out, individuals have thousands of profiles and past interests. A person can be a father, son, brother, golf lover, traveler, wine drinker, engineer and HR benefit seeker all at the same time...