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    4 Replies Latest reply on Oct 22, 2007 2:03 PM by NatOnline

    How to use dynamic pricing on e-commerce?

    NatOnline Tracker

      I am wondering how and when to use dynamic pricing on my e-commerce. I have noticed sometime the price is not the most important decision to buy a product.

      What are you looking for when you find the product you want on a e-commerce?

      How do you accept a dynamic price (for example last month you bought a product at $9.95, today you want to buy the same product but the price is $10.95)?


      Why a dynamic pricing? As a merchant charges are going up: vendor shipping cost going higher, shipping cost when offering free shipping going up, gas used to bring customers packaging to shipping providers, etc....


      What do you think is best to apply?
        • Re: How to use dynamic pricing on e-commerce?
          DomainDiva Ranger
          The dynamic pricing model works well with items sold over a short seaon, skiwear, swinwear, toys (ever wonder why the newset toys are introduced at Christmas season?).

          For products such as yours that are sold all year long, you may want to do some online research before you commit to a new priced dynamic. As with anything else, it may sound good but could actually hurt you in the long run.....

          Lots of articles on this came up when I put 'dynamic pricing' into the search engine.
          1 of 1 people found this helpful
            • Re: How to use dynamic pricing on e-commerce?
              NatOnline Tracker

              I am just testing a few new prices on some products but I like the concept. For example if a product doesn't sale very well I can drop the prices, for the most popular products I will not make any changes, and for others I added $1. The thing is to keep a good balance.

              All store use dynamic pricing I think, you can see that with different industries, they promote a product, then the price of the product goes up, then they promote again for a short time buy 2 get one free, things like that. But when the promotion is ending the product take an encrease on the regular price.

              Basically they don't increase the price directly, it is perhaps more acceptable for customers.
            • Re: How to use dynamic pricing on e-commerce?
              LUCKIEST Guide
              The basic reason for being in business is to make money.
              The faster you turnover an item and the more times you turn over the item, the better you do.
              Do you have a marketing or pricing plan?? Do you have an accountant??
              There is a point where the price is too high and the item will not sell.
              Conversely, there is a point where the price is too low and you are losing money.
              Everybody seems to be raising prices, as you said about shipping costs and gas.
              It is going to be an interesting holiday season.
              Good luck, LUCKIEST
              1 of 1 people found this helpful
                • Re: How to use dynamic pricing on e-commerce?
                  NatOnline Tracker

                  Good answer, well I think it was the time for my business to make a little extra, like I said above, shipping cost, gas and I will add the advertising cost are going up like a rocket.

                  Our marketing plan was to put the same prices as the manufacturers online e-commerce. They also sell these products on but with higher prices.

                  So my idea was to sell around 15% of our products at the Amazon prices, not more than that, otherwise I think we will loose customers. For all special occasions we offer a discount, Christmas is coming soon and like every years we will offer a general discount to increase our sales.

                  We don't have an accountant, and I don't think we will get one soon.


                  I know Luckiest, it is difficult to find the right balance on satisfaction of our customers and making enough money to stay in business.

                  Yes lol it will be an interesting season, and I will watch carefully our competitors too ;-)