Would you consider using dynamic pricing to optimize?

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Amsterdam Netherlands
aelhaji
Kudos: 24
Joined: Oct 24, 2016
Would you consider using dynamic pricing to optimize?
24 Oct 2016
One of the biggest challenges of running an ecommerce platform is pricing. We all know that demand changes over time and that using fixed prices usually means mispricing the product. I'm working on a solution that would make it easy to implement dynamic pricing. The idea I'm playing with is that customers would be invited to a sealed-bid auction to determine the exact demand for a product, use that data to allow you to set a price that maximizes revenue or profits for that auction. The invitation could be part of an e-mail that you already might send out regularly to your customers. Would you consider using such a solution?
Nottingham United Kingdom
Bigian13
Kudos: 2,245
Joined: Feb 21, 2014
Re: Would you consider using dynamic pricing to optimize?
30 Oct 2016
@aelhaji

Nah.

Customer offers would probably not be legally binding. Therefore demand is questionable.

Competition will probably still undercut you.

For high value limited stock items it would be a possibility, but for general run of the mill on-line sellers, I doubt it.

Amazon already offer a wealth of data regarding sales, it is just how you read it.
E-commerce , love it or hate it, that's why we are here
Kolkata, India India
OBVA Virtual assistants
Kudos: 102
Joined: Aug 25, 2016
Re: Would you consider using dynamic pricing to optimize?
31 Oct 2016
@aelhaji. Your idea is good. However this process takes months if the number of products you sell is vast and huge. I would recommend doing competitor price research as it may seem to be a basic old one, many successful entrepreneurs includes this technique with other strategies to increase their selling volume.

[Last edited: 31 Oct 2016]
Nottingham United Kingdom
Bigian13
Kudos: 2,245
Joined: Feb 21, 2014
Re: Would you consider using dynamic pricing to optimize?
4 Nov 2016
@aelhaji

With more and more marketplaces using EAN / UPC for listing products, as I have said before, unless your product is totally unique you are wasting your time.

If however your product is totally unique, patented, branded and everything else, it may work until it is illegally copied, but I doubt it.
E-commerce , love it or hate it, that's why we are here

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