Dynamic Pricing in E-Commerce – Mehul Ved – Medium

Dynamic pricing or price optimization is the concept of offering goods at different prices which varies according to the customer's demand. The pricing of the commodity can be done on the basis of competitor's pricing, supply, demand and conversion rates and sales goals. The practice of Dynamic Pricing is being widely adopted in E-Commerce. Machine learning algorithms should be able to efficiently automate pricing decisions to maximize profits, as they can perform pricing decisions using sophisticated calculations and predictions, by putting all available data into perspective, and change their pricing strategy to best adapt to a dynamic environment. Dynamic pricing, a strategy which enables businesses to provide flexible prices for products and services is now catching on across hospitality, retail, travel and entertainment industry segments.