A guide to long tail business strategies

E-commerce is competitive, but less so if you focus on a niche product. Discover how adopting a long tail business model can pay off.

What does long tail in business mean?

The long tail business model focuses on selling low volumes of specialised products to many customers, rather than high volumes of a reduced number of popular items.  

The benefits of a long tail business strategy

• For small businesses entering a sector dominated by a big market leader, focusing on a niche area means less competition and higher profit margins.

• Niche businesses tend to have dedicated, passionate customers which means more email subscribers and social media followers – both of which drive brand loyalty.

• Thanks to international shipping, it has never been easier for these specialist businesses to find, connect with, and sell to enough customers to make their long tail e-commerce strategy pay off: in fact, 57% of global consumers purchased from a cross-border brand during the pandemic¹ – a trend that’s here to stay.

How to employ a long tail e-commerce strategy for your business

1. Find your market

If you’re selling a niche product, you’ll likely have a very specific pool of people to target. Facebook Ads is a good place to start – the platform allows you to filter audience demographics by interests, behaviors, age and location, meaning your ads will be served to only those with the highest intent to buy. 

You should also conduct research to identify long tail keywords that are relevant for your business and customers. Optimising your e-commerce website with relevant keywords can connect you to a wider, engaged audience who are interested in your products. Likewise, using hashtags on social media will attract the right shoppers. Focus on specific, detailed tags linked to the product rather than broader terms which will put you in competition with thousands of other businesses.

2. Understand the market

Consumers’ preferences when shopping online vary from country to country – everything from their preferred payment methods to whether they value price over convenience. Knowing these behaviors is the key to creating a successful marketing and sales strategy. Luckily, we’ve done the research for you: our country guides have all the inside insights you’ll need to engage with customers in the correct way, wherever they may be.

3. Delegate customs and regulations management

These can be complicated and time-consuming for your business to deal with – especially if you’re planning on exporting to multiple countries. This is where partnering with an international expert like DHL will pay off. Their shipping specialists will take care of all customs and tax regulations for you, leaving you free to take care of the business of selling. 

4. Be clear about international shipping costs

Did you know that high “extra” costs – including shipping, taxes and fees – is one of the leading reasons online shoppers abandon their carts during the checkout process? Many businesses can’t afford to offer cross-border customers free shipping, so instead be clear about the charges throughout their purchasing journey, so that they don’t have any nasty surprises when they come to pay.  

E-commerce is your path to find customers across the world – whatever you’re selling. Start your international shipping journey with DHL today to find the right markets to help your business grow. With e-commerce, there are no limits! Apply for a DHL Express business account here.