What Dynamic Prices Are and How to Achieve a Profit
Implementing Dynamic Pricing Models
Dynamic pricing is a pricing strategy. In this strategy, pricing is built around preinstalled rules and current market trends.
When implementing a dynamic pricing strategy, the online retailer makes the price estimation while considering time, traffic, conversion rates, sales goals and competitors’ pricing.
A dynamic pricing system works to increase revenue, making an online business profitable, based on a reliance to dynamic repricing.
Dynamic pricing allows the pricing manager to immediately act on market changes and reprice the products, product groups, and categories to achieve the store's goals.
The aforementioned advantages of dynamic pricing were picked up by the giant of online selling — Amazon.com. By monitoring pricing dynamics, it is easy to see how intensively Amazon repricing speed affects an eCommerce market.Competera dynamic pricing benefits
Every retailer wants to know about Amazon repricing software and strategies, but one must not blindly follow other retailers' pricing behavior. Even if it is as efficient, as Amazon's repricing, it might not be a fit for just any online store.
The correct formula of adoption for effective product repricing is product assortment analysis, strategic business goals, clearly defined KPI for different departments of the company (to monitor as products, which brings profits as well as those who deliver traffic).
Dynamic pricing in retail can create a unique pricing strategy for every e-tailer.
Dynamic pricing strategies should include the position of your online store against the market, your primary competitors, which influence your customers’ price perception.
Here is undeniable truth - 8 out of 10 customers compare prices in at least two stores before making an online purchase.
Accordingly, the fact that competitors’ prices affect your customers’ price perception and largely influence your online store sales, you must use competitive data to implement the dynamic pricing within your online store.
Because market monitoring is a complicated and time-consuming task, pricing managers, prefer to employ the dynamic pricing software and provide the automatic repricing of the online store’s products which based on accurate, competitive data.
1. Manual SKUs are tagging for the next repricing set by the product managers in ERP and forming an XML-file based on these selectors.
2. ERP learning on automatic tagging (selection) the appropriate products under their sales performance.
3. Integration with Google Analytics (or another system) for export of data on product card view.
Automatic pricing is a solution for the pricing manager, who will want to save time, as well as provide the gross margin and profit.
Competera is a dynamic pricing platform, which gladly helps you make your business more efficient.
because of benefits suggestions which are price monitoring on SKU level, timely data delivery (if one needs data at 9 am - Competera delivers it at 9 am), notifications on competitors price changings and price history analytics.Learn more