Some posts ago, I explored different business models that where possible with the Internet such as the Long Tail model. This model makes able that stores such as Amazon reach niches and not only sell mass consumption products because with Internet and the minimum costs it implies a company is able to offer infinities of products’ references. Let’s remember this wasn’t able without Internet because physical stores have limited space to store products.
This time I am not talking about the Long Tail model, but I want to analyze the subject of niches over the Internet. Ecommerce has opened the possibility to offer consumers a huge directory of products and services, practically with just a click. With this situation big companies who had a long trajectory, such as the retailers and supermarkets where benefited as they understood they where able to apply on the Internet the long tail model. In the same way as the big companies found opportunities on Internet, it has also gave the possibility to smaller companies to find a place to sell in there.
One of the reasons why this occurred is because with little money, an ecommerce space could be opened with products of a specific niche. Creating a physical store that was so specialized might be difficult because it required that people interested in that type of products lived near the store in addition to money in order to invest in marketing.
The niche stores that have been successful in the Internet with small budgets have had the advantage I mention next. On the first place they have had the possibility to create a good online store with a small budget –smaller budget than the required with a physical store-. On the second place, they where able to reach people that where part of that niche because information of social media and Google made it possible. Finally having the possibility of adding an important market because they could reach people in different places.
Evidently, there are much more important elements in this equation because although Internet is a channel with interesting possibilities, it is not as easy as just creating a web page. However what I wanted to show was that Internet opens the possibility of having big businesses, not only to mass consumption products but also to totally specialized stores.
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