Insight Report 8 minutes PremiumDynamic Pricing: Hard to Compete with AI on Pricing Coresight Research February 20, 2018 Executive SummaryDynamic pricing—also referred to as real-time or demand pricing—is an approach used by retailers to set flexible prices for products based on current market demand. In other words, to formulate optimal prices to maximize sales and margins. Advancements in digital technology are enabling retailers’ dynamic pricing strategies to become increasingly accurate and effective. Digital technology can be used to gather and analyze data that influence prices and to formulate optimal pricing according to the circumstances. Optimal prices are calculated by complicated algorithms that consider factors such as consumer behavior, seasonality and competing retailers’ activity. Amazon’s use of dynamic pricing is one of the main examples of its application in retail. In order to offer competitive prices at all times, Amazon constantly scans competitors’ prices and price levels set by third-party retailers on Amazon Marketplace to inform its own pricing. This report is for paying subscribers only. Already a paying subscriber? Please log in to see the entire report.If you wish to learn more about our subscription plans and become a paying subscriber, click here. This document was generated for Other research you may be interested in: Weekly US and UK Store Openings and Closures Tracker 2024, Week 2: Bodycare To Open 20 UK StoresConsumers’ Channel Preferences Gradually Shift: China Consumer Survey InsightsDiving into the Diverse Underserved US Beauty Market: Insights Presented at the Inside Beauty ForumWeekly US and UK Store Openings and Closures Tracker 2024, Week 16: 7-Eleven Announces Over 200 Store Openings and Closures