What is dynamic pricing?
It’s a pricing strategy that uses intelligent algorithms and automation to set and maintain optimal prices in an online store, mainly to ensure a high profit and good visibility of a particular offer in selected sales channels (marketplaces, price comparison engines, and online stores).
What is an example of how does dynamic pricing work?
The airline sector is a good example of how a dynamic pricing strategy works. The airline industry adjusts its prices based on several factors (e.g., seat availability, time to departure, previous searches, etc.). As a result, the same plane ticket can have many different prices.
Why is dynamic pricing good for your business?
The answer is threefold:
- Dynamic pricing helps you maintain visibility in all the major sales channels. For example, thanks to predefined rules, you can decide to be in the top 3 best offers on Amazon or Google Shopping, thus ensuring good visibility of your listing.
- Because dynamic pricing algorithms always try to set the most profitable price, they help you increase your profit margin. As a result, you make more money on the products you sell.
- These algorithms monitor competitive offers for you and respond to price changes.
You don’t have to do that manually and save time.
How can I implement dynamic pricing?
In most instances, you can’t do that on your own. Instead, you need a provider or platform with a dynamic pricing tool. Many dynamic pricing providers enable seamless integration with your e‑commerce platform. One of them is our partner, Dealavo.