55. The Long Tail

The distribution and sales channel of the Internet enables businesses to reach new niche markets by selling a large number of unique items in small quantities. The Long Tail describes a business model developed by Chris Anderson, editor of Wired magazine and author of The Long Tail: Why the Future of Business is Selling Less of More. A perfect example of this business concept is Amazon.com.

The average Barnes and Noble bookstore carries approximately 130,000 books. Store size limits the inventory of books that can be physically inventoried and sold, which essentially forces Barnes and Noble to carry a large inventory of the most popular books. On the other hand, Amazon is the largest bookseller, with two-thirds comprising “unpopular” ...

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