Dynamic Pricing

Dynamic Pricing is a pricing strategy where prices are frequently adjusted e.g. based on changes in demand or supply. Dynamic pricing allows companies to flexibly change prices due to changes of internal or external factors. Often online retailers use dynamic pricing in the simple form of repricing where prices are adjusted due to changes in competitor prices and based on a fixed set of price rules. Cutting edge methods of dynamic pricing are based on machine learning algorithms which allow an automatic optimization towards business goals.

Dynamic Pricing example for one product