Do Mobile Applications Bring Longer Tail? An Empirical Study of Sales Concentration in Online Channels

Document Type

Conference Proceeding

Publication Date

10-12-2017

Abstract

With the emergence of online channels, more niche products are sold compared to traditional channels, and it has resulted in more product variety. This “Long Tail” effect has distributed the sales among more products, lifting the weight from mainstream products and bestsellers. As online market grows, mobile applications are becoming the mainstream channel in retail and digital marketing. We studied the distribution of product sales on online channels, and compared the effect of long tail on desktop versus Apps. Our findings show that the distribution of product sales on App channel is less concentrated than the one in PC. This provides an important insight for retailers: adding mobile application to their sales channels increases the variety of the products sold and generates value for them.

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