Long Tail theory Reading Notes: Chapter 2 outside entertainment industry

1. eBay

EBay has become one of the world's largest retailers, with a turnover of more than $0.1 billion per day, basically equivalent to sales of Walmart.

EBay is both a long tail of products and a long tail of traders. It is a typical user-created market, and eBay itself is just a coordinator.

EBay operates around the concept of decentralized inventory. It only provides a website that allows buyers and sellers to contact themselves on this website and negotiate the price on their own. Therefore, its inventory cost is zero.

EBay is also a self-service model. Sellers can create their own product lists and handle their own packaging and mailing. eBay also provides filters to help buyers find products, mainly search engines and multi-level classification results.

EBay is a collection of small businesses in the highest realm.

However, eBay does not have a recommendation system like Amazon, a comment system, a high-efficiency filter such as price and ranking, because it is hard to know what products are being sold online. But this is exactly the challenge they face, because small and medium-sized sellers who shop on eBay also have their own websites, and some collection devices such as Google are more intelligent in extracting this information.

2. Google

The traditional advertising industry is a typical popular centralism industry. The high cost determines the core position of large buyers and large sellers.

Three important long tail features of Google's advertising model:

• First, it is based on search keywords, rather than a stripe image, making the long tail almost infinitely long.
• Secondly, the cost of access to the market is greatly reduced. Anyone who buys a keyword in an automatic auction can become a Google advertiser with a low price. In self-service mode, Google provides ad customization and detection tools, to help users increase the entry rate. You can adjust keywords and AD texts as needed.
• Finally, if a website publisher or blog has a certain amount of access traffic, you can apply to join Google AdSense for free, regardless of whether the website is personal or commercial. Google AdSense is a form of network membership alliance. If a website is added to Google AdSense, it becomes a google content publisher. As a content publisher, you can display google Keyword ads on your website, google pays the Commission based on the number of clicks displayed on the member website.