Comments on: The Long Tail (Part 2) http://www.catalystnyc.com/cofactors/2005/06/the-long-tail-part-2/ Welcome to CoFactors, the research + development crucible for Catalyst Group Design. Here, we expand and codify our observations and experience independent of clientdriven situations. Our position as consultants gives us an exceptionally broad view of the Web and interface design issues + culture. Feel free to link to our blog, send feedback, download white papers or even to read about developments in our own business. Sat, 22 May 2010 13:46:59 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: will http://www.catalystnyc.com/cofactors/2005/06/the-long-tail-part-2/comment-page-1/#comment-53 will Mon, 13 Jun 2005 17:27:40 +0000 http://www.catalystgroupdesign.com/cofactors/?p=83#comment-53 Brand vs. Network Effects First, not that either is mutually exclusive. But in the online world, network effects for "platform" based e-commerce sites (ebay & amazon) is more important than brand while offline world the brand drives more value. We all know that network effects "ramp up" on the value curve much faster which drives up concentration of online retailer. Countered by low switching cost of online shopping experience probably explain why its ONLY 10% less than offline where brand is actually re-enforced by "committment" (10M drive to my local B&N so I better buy something if I go) Side note, if eBay and Amazon is not included in the survey as TWO retailer but conglomeration of their sellers I bet you'll side the tail you are looking for. Brand vs. Network Effects

First, not that either is mutually exclusive. But in the online world, network effects for “platform” based e-commerce sites (ebay & amazon) is more important than brand while offline world the brand drives more value. We all know that network effects “ramp up” on the value curve much faster which drives up concentration of online retailer. Countered by low switching cost of online shopping experience probably explain why its ONLY 10% less than offline where brand is actually re-enforced by “committment” (10M drive to my local B&N so I better buy something if I go)

Side note, if eBay and Amazon is not included in the survey as TWO retailer but conglomeration of their sellers I bet you’ll side the tail you are looking for.

]]> By: John Franklin http://www.catalystnyc.com/cofactors/2005/06/the-long-tail-part-2/comment-page-1/#comment-52 John Franklin Fri, 10 Jun 2005 16:53:35 +0000 http://www.catalystgroupdesign.com/cofactors/?p=83#comment-52 An interesting side note here: amazing that the difference between online and offline merchants in terms of online sales concentration is only 10%. Somewhat alarming, actually. In theory, it'd be far less concentrated on the Internet, if only because it's a younger medium. Nick believes and I agree that we're better off without this kind of concentration online. About the only immediate benefit I can see to it is that presumably those 100 top online merchants are simply doing what they do better, have better reputations and more to offer. But when I see sites like that of the Vermont Country Store, I really wonder. An interesting side note here: amazing that the difference between online and offline merchants in terms of online sales concentration is only 10%. Somewhat alarming, actually. In theory, it’d be far less concentrated on the Internet, if only because it’s a younger medium. Nick believes and I agree that we’re better off without this kind of concentration online. About the only immediate benefit I can see to it is that presumably those 100 top online merchants are simply doing what they do better, have better reputations and more to offer. But when I see sites like that of the Vermont Country Store, I really wonder.

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