StatusCake

Real-Time Pricing for Small e-Commerce Retailers

Most e-commerce sites do not change their prices very often. Larger companies like Amazon continually change their prices in real time to keep a competitive edge and try to increase sales and profits. Until recently, the high cost of implementing real-time pricing made it prohibitive for smaller retailers from using real-time pricing, but this is no longer the case.

What is real-time pricing?

Real-time pricing is the practice of changing prices very quickly based on various sales factors, such as stock availability of a high-demand product, prices charged by competitors, the browsing history of customers, customers’ previous purchases and even the weather. An example of this is lowering the price of gloves when a visitor is browsing the website from a city that is in the midst of a cold spell.

You need to analyse a lot of data very quickly if you want to offer a promotional price in real time, including whether the person browsing is a returning customer, previous purchases (if any), location, and how long you want to offer a promotional price.

Previously, the extent of the required data analysis prevented smaller e-commerce sites from using real-time pricing, With the advent of faster and cheaper computers and specialised vendors offering real-time pricing services, small online retailers can now take advantage of this technology.

What are the benefits of real-time pricing?

Real-time pricing can increase the demand for your products, especially if your updated price meets or beats the prices offered by your competitors. Your customers will know they can receive a competitive price without the need to visit competing sites. In addition, when you change your prices in real-time based on your customer’s situation you increase the chances of making the sale. Real-time pricing can improve your conversion rate and increase your revenue.

Also, your customers will become more loyal if you provide them with excellent pricing and promotions based on their situation. Your customers are also more likely to give you positive reviews and refer their friends and family members, which will increase traffic to your site and generate more sales and profits.

Real-time pricing is not just about lowering prices. In some situations, real-time pricing could mean you could increase your prices. For example, if you have a product with a limit supply that is selling very quickly, you may have the opportunity to raise your price and increase your profit margin. Also, you might be able to increase profits by having different prices for several customer segments based on their shopping behaviour.

How do you implement real-time pricing?

There are several vendors that specialise in this field and who can tailor a real-time pricing system for your e-commerce site. These firms use artificial intelligence to analyse your customers’ behaviour to offer them various discounts, coupons and other promotions as they browse your site. These personalised incentives integrate seamlessly with your sales process.

Real-time pricing can give you a competitive edge and give your customers a better shopping experience.

Share this

More from StatusCake

How To

Using Social Media for Affiliate Marketing

7 min read Today, social media uses a wide range of different social networking platforms to help its users with the creation and sharing of ideas, information, personal interests and hobbies by establishing virtual networks. Affiliates can benefit from these groups that use web-based applications to communicate, interact and connect.

man-and-woman-on-website
How To

How to Improve User Experience

4 min read One of the biggest eCommerce questions – how do you improve user experience? Here are all the top tips for a better UX design to help you drive revenue.

woman-astronaut-flying
Product & Updates

How Page Speed Affects SEO

2 min read We all know page speed is crucial but not just for you brand – it affects SEO so hugely that it can make your pages drop in ranking.

short-reads

How to Reduce Bounce Rate

5 min read Learn what bounce rate is and how it is measured, what a good bounce rate looks like, and the actionable steps you can take to improve the bounce rate on your website.

man-on-bike
short-reads

What Causes Website Downtime?

3 min read Website downtime no longer needs to be this big mystery that keeps you up at night. Here are the top causes for website downtime AND how to fix them.

short-reads

Over 40% of Online Advertisements are Too Large and Slow Down Websites

2 min read Large ads have been a major issue with online publishers who have been struggling with how to curtail what many call “fat ads.” The oversized ads have a major impact on the ability of website visitors to see them as they can’t view them if they don’t load properly.