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. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for Other research you may be interested in: November 2023 US Retail Sales: Electronics and Appliance Stores See Sales Growth AccelerateShoptalk Europe 2023 Startup Pitch Competition: Preview—10 Innovators, Three Areas of Retail DisruptionBrand Influence, Customer Experiences, AI, Sustainability and Talent Matter: Insights from NextGen Commerce, a Coresight Research ConferenceAugust 2023 US Housing Market Indicators: Mortgage Rate Increases to Highest in Over 21 Years