Dynamic Pricing Software: model, solution, advantages & optimization

Dynamic Pricing

Smart and Intelligent Pricing for Online Retail
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Advantages of Dynamic Pricing Optimization

Dynamic price optimization for e-commerce helps find a competitive advantage and maximize profit for an online store.

Dynamic pricing as a pricing strategy can be adopted in different industries by relevance. A good pricing strategy in the online retail industry should bring the best pricing position towards the main competitors, and win customers using actual market insights.

dynamic pricing software

Dynamic pricing in eCommerce retail is specific because it proceeds from a product-oriented approach to pricing. In other words, dynamic pricing in retail lies in price adjustment for a product for all customers at that moment.

This means all consumers need to see the same price at the same time. Hence, therein lies a question — what are the key criteria for price adjustment in dynamic pricing?

dynamic price optimization for e-commerce

Key criteria for price adjustment with dynamic pricing software

Every dynamic pricing platform offers a different data basket to produce price recommendations for an e-commerce business.

There are 3 key points for automatic monitoring with dynamic pricing optimization solution for the case of e-commerce retail:

  1. competitor's price
  2. stock availability (assortment)
  3. promotions

Product repricing should be provided as soon as it is required by current market conditions and your business goals.

dynamic pricing optimization solution

Efficient pricing strategies for online retail

An automated dynamic pricing in e-commerce retail is a convenient solution for Pricing Managers. There are two reasons to consider about the implementation of a dynamic pricing algorithm:

  • The quality of data does not depend on human mistakes while conducting competitive price monitoring.
  • Automated dynamic pricing software saves both time and energy for Pricing Managers, allowing them to focus on their direct responsibilities.
Competera dynamic pricing benefits

dynamic pricing optimization

Dynamic pricing model

Dynamic pricing suited to the e-commerce retail industry streamlines the process of collecting big data, improving the pricing strategy of online retail.

Dynamic price optimization software for online retail makes online pricing strategies an engine of profit and business development.

Strategic pricing can implement one of the classic models, or combine their elements with dynamic pricing.

dynamic price optimization software

E-commerce pricing models

Cost Plus Price
Add the fixed amount to the cost of a product in order to find the retail margin. This method doesn’t require extensive knowledge of the market and gives a clear price. However, if sales are not doing well, you are compelled to reduce the price at the expense of the margin.

The selling price is found by the cost of the product, plus the percent of it required to cover all disbursements.

dynamic pricing strategy

Demand-Defined Price
Set the price according to the current demand for the products. The demand curve can be based on the sales test, and the starting price should be slightly overpriced, considering the possible necessity to make it lower.

Value-Based Price
The final price based on product value for a customer at the moment. To find the price using this method you need to get a competitor’s price, due to the value being determined by the variety of alternative choices of making a purchase.

dynamic pricing automation

Automated dynamic pricing

Manual price management is justified in the case of the online store having less than 1,000 transactions and less than 100 products for repricing.

In other cases, the product pricing strategy requires automated solutions for online store profits and a good job done by the pricing manager.

Competera is a dynamic pricing software, delivering reliable market insights for online stores to achieve a competitive advantage through monitoring and data analysis of competitors price, stock availability, and promotions.

dynamic prices

Competera Offers such Benefits as:

Online fully automated competitor price tracking tool
Online fully automated competitor price tracking tool

eliminates days of manual work and possible human error

Collects and updates information as often as necessary
Collects and updates information as often as necessary

with flexible configurations which allow for custom time settings for different categories

Smart scraping technology that doesn’t trigger a website overload
Smart scraping technology that doesn’t trigger a website overload

24/7 technical support and client assistance
24/7 technical support
and client assistance

Email notifications and reports
Email notifications
and reports

See how easy you can filter all your stocks by price alerts and competitors within Competera Products Report.

The process of developing and implementing a proper pricing strategy is easier and more efficient with Competera

because of benefits which are price monitoring on SKU level, timely data delivery
(if one needs data at 9 a.m. Competera delivers it at 9 a.m.), notifications on competitors price changings and price history analytics.

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