Long tail is the concept that a significant portion of total sales comes from a large number of niche products, rather than a small number of popular ones. In traditional retail, the focus is primarily on high-demand mainstream items, known as the “head” of the demand curve.
However, with the rise of e-commerce and online marketplaces, retailers can now offer a vast array of specialized products that cater to unique and diverse customer preferences. The long tail theory suggests that collectively, these less popular items can generate substantial revenue when their sales are combined. This shift allows retailers to tap into niche markets, cater to specific interests, and reach a broader customer base.
By leveraging the long tail, retailers can increase their product assortment, cater to individual tastes, and potentially boost overall profitability.