2. Put everything out there
In a Long Tail Model, the combined sales of niche items are
comparable to those of top selling items
The reduced costs of using a purely digital model encourages
digital vendors to make available as many items as they
possibly can
Make it easy to find
Businesses with a Long Tail model act as aggregators
An aggregator provides customers with access to a wide range
of goods in a single, easy to use location
Basic principles of the Long Tail
3. Higher storage and distribution costs
A physical store requires additional staffing and maintenance
costs to operate
Limited physical space means that a business will only
stock items they are confident of making a profit on
Reduces the diversity and availability of products in stock
Market is limited by geographical location
Limits the amount of potential customers to the local
population within a specific geographical area
Bricks and Mortar store
4. Minimal storage and distribution costs
Reduced costs allow vendors to make a vast range of products
available at more affordable prices than a physical store
Overcomes the limitations of time and space
Items are available for purchase 24 hours a day, 7 days a week
from any location with Internet access
Ability to engage directly with customers
Utilising user profiles, social media and user generated content
to provide a customised experience for each user
Digital Vendor
5. Increased choice
By using a purely digital model, Apple has been able to provide a vast
catalogue of products on the iTunes store with relatively low cost.
Reduced storage and distribution costs allow Apple to offer products through
iTunes at more affordable prices than physical stores
Easy to use
The iTunes Store provides a user friendly interface which allows users to
easily search and purchase a wide range of items
Integration with existing product range
Items purchased from iTunes can be easily transferred to other Apple devices
such as the iPod, iPad and iPhone
iTunes & the Long Tail
