What is the best software for fully automated dynamic pricing in e-commerce?

October 17, 2019 in Q&A

Dynamic pricing, price optimization, profit-maximizing software; we find many names for those we love. I will try to answer: what type of software support e-commerce companies use for full automation of changing prices to maximize profit and/or market share.

To keep this text on a high level I will elaborate on the pricing of two important categories of products: key products and tail products.

Key Products
Like traditional retailers, e-commerce companies are keen on being seen as the most price competitive on the key products. Wheater you are a consumer electronics company offering iPhones and Samsung TVs, a street clothing retailer selling Adidas or Nike sneakers, or you are shipping newly released books to your Continue reading »

How do retailers price their products?

November 30, 2018 in Q&A

In my experience retailers have rather simple pricing methodologies and most of them use variants of cost+ (cost+ = taking your cost and adding a standard margin based on group/category). They manage their pricing in Excel or have built in the pricing calculation into their ERP. Few of them actually uses a price optimization tool, though it’s increasing in popularity in the last few years, especially with the growing competition from online retailers.

To dig deeper, I think a first good step is dividing the retailers into two major sub-groups: own brand sellers (H&M, IKEA, J Crew, Zara) and re-sellers (Media Markt, Bauhaus, Wall-Mart, Home-depot, Carrefour).

retail pricing priceedge

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