Dynamic Pricing Models for E-commerce

Have you noticed pricing on e-commerce websites change depending on the day or time that you checked? Or a product from the same company listed elsewhere with a different price that appears to be lower?

Better yet, have you ever gone to Amazon where all of these sellers are undercutting each other?

Most likely they are using software to undercut the competition by price and you best know that Amazon probably does that, where they are dynamically changing things for their benefit opposed to the best interest of the sellers.

It’s cut throat actually.

This is a minor example of dynamic pricing or price optimization. Algorithms can be developed to support dynamic pricing models based on varying factors.

If the item is low in stock some companies may choose to raise the price due to scarcity. I suppose that helps in the sense of psychologically some may not buy because they remember that the price was much lower previously.

When items come back in stock the price can dynamically change into the price that suits the amount of high inventory with the purpose to sell out.

Have you considered dynamic price models?