However, this strategy is just beginning to show itself in e-commerce. Many variables can be analyzed when implementing a dynamic pricing strategy. Some of the different parameters that can be used in dynamic pricing strategies include:
In the absence of interference by an authority, the price of a good or service is freely determined by buyers and sellers in accordance with market conditions. As a result of supply and demand in the market, the price of goods and services is formed. The change in supply and demand causes the price to re-form accordingly.
Time-based pricing is aimed at maximizing purchase conversions by offering products for sale within a specified date range. During this time period, the price may increase or decrease. The time limit you provide to consumers triggers the purchase action and enables them to take action.
Market-oriented price strategies are prepared by addressing competition and elaborated by analyzing the pricing strategies of competing firms. When investigating competition, you also need to analyze the demand for the product. If the demand for the product is high, the prices of the product may fluctuate continuously as well as being competitive. Therefore, in order to take a competitive price approach, you need to closely monitor the demand for the product and how the competitor companies are pricing. So competitors2 prices should be tracked regularly.
You can your prices according to your customers behaviors. For example, a customer visited your website and looked at same products a several time. You can give a discount for this product to convince him/her to buy.
You can classify your customers according to specific criteria. This way, you can set a pricing strategy for these segments and make more sales. Segmentation is not only important to increase your sales and profits, but also to recognize your customers and improve your existing service.