Dynamic Pricing
Dynamic pricing is also referred to as surge pricing, demand pricing, or time-based pricing. This is a pricing strategy in which businesses can set flexible prices based on current market demands. To put it more simply, this is a strategy in which product prices continuously adjust. It may be in a matter of minutes, hours or days, depending on the type of the market.
If we go a little bit back in time, we can see the questions have captured the companies attention. How many people want some product? How much product is there in stock? how much product varieties exist? how many competitors are out there? Nowadays, real time pricing uses more advanced data and ways to make this process faster.
In today’s eCommerce pricing changes became one of the most important tools to work with and for several reasons. One of them is making quicker and more profitable changes in terms of sales.
This way your business becomes more aware of market changes and can act with much more flexibility. For example, if some item is overstocked, the necessary reduction can be performed by offering discounts.
Of course, price optimization offers you a possibility to track and adjust the prices to your competitors. Another benefit is having a better insight into industry trends. You would be able to gain valuable insights. Which items are most bestselling? By which competitors, and by what price?
