Dynamic Pricing

Dynamic Pricing

In the world of e-commerce retail, many of us have current strategies that can fall under the dynamic pricing model. For example, most eTailers will constantly monitor their competitor’s prices, and price accordingly. Some do this manually, and some have complex algorithms, constantly moving prices up and down, sometimes by increments of pennies, to find the perfect and most competitive price.

Sadly though, it often ends there. A retailer will price according to their competitor and their basic KPIs such as cost and profit margins. But the reality isn’t always that simple, and too much money is left on the table if your only strategy is that of beating your competition.

For example: Your competitor drops their price in half, and begins selling out their stock. What do you do? Basic strategy would have you rushing and slashing your prices as well, in order to stay competitive. But what if that’s wrong. What if this item is trending, and in just a few days, your competitor will have sold out all their stock at a discounted rate, while demand for the product will continue to increase. By holding out, you will be the only one left with stock and have the opportunity to sell your stock at full price, resulting in greater profits.

But how would you know if an item is trending? Sure, some items are easy, like say fidget spinners, which picked up steam quickly and became a worldwide sensation among children and teens. However, as merchandising managers, or purchasing agents, we all know most items never get to that viral point. Instead, we have hundreds and thousands of items we need to make decisions on daily, just to keep our businesses afloat.

That’s where Dynamic pricing platforms come in. Simply put: a technology stack that gives you a command center for everything related to pricing and profitability. By utilizing massive amounts of data, and intelligent algorithms, the platforms give you the ability to make these decisions in real-time, on every single product. By plugging into your inventory systems, ERP, website, reporting and analytics, as well as 3rd party data sources such as competitive intelligence providers, and other big data platforms, it has the ability to find correlations for why products are selling or not selling. It can then offer suggestions for price changes, that you can either choose to ignore, automatically update, or simply receive a daily feed of pricing suggestions.

Pini MANDEL, CEO&Co-Founder of Quicklizard


New version of WorkIT Analytics

New version of WorkIT Analytics

We are proud to announce the release of a new version of our software WorkIT Analytics.

Our solutions provide data and tools for e-commerce players to analyse and understand the market in a highly detailed and comprehensible manner.

By collecting, processing and analysing information such as prices, delivery fees, stock availability, as well as promotional activities and product reviews, WorkIT Software allows retailers and brands to fully manage their position against their competitors, stakeholders and consumers.

  • Retailers can optimise their price positioning or their product range by accessing the data of hundreds of websites.
  • Brands can monitor their distribution, manage their brand visibility on marketplaces and use product specifications or reviews to run trend analysis.

WorkIT Analytics is available as a SaaS service on various product categories such as Electronics, Cosmetics, Toys, Fashion, Childcare or Spirits & Liquors. Our data is updated several times a day, all week long, ensuring the most up-to-date information possible.

11 Essential E-Commerce Pricing Strategies To Beat Your Competition

11 Essential E-Commerce Pricing Strategies To Beat Your Competition

Pricing items online is a daunting task, as well as online price tracking.

It is a trial and error experiment as you don’t know a priori the prices that will be more attractive to your potential customers.

That is why, we wanted to help by clearly identifying essential & common pricing strategies that will help you make more sales and enable you to beat your competitors.

Here are 11 e-commerce pricing strategies examples to help you in that process!




All companies shall determine the price of their products based on the expected rate of return of their venture.

All business school students know break-even margins, profit margins equations. An equation is used to set the price of a product that will yield a certain profit if a given quantity of the product is sold. A company can establish a price where a given benefit will be realized when a certain level of sales is achieved.

Under this strategy the manufacturer is supposed to review various scenarios and guess the impact it would have on sales volumes and profits. Grainger is a B2B E-Commerce site that uses this strategy to sell its products.




Psychological pricing is also known as charm pricing.

It is one of the oldest pricing methods, relying on a theory that some prices have psychological influence. Prices are indicated as odd prices. It involves pricing slightly below a round number. For instance, you may price a product at $2.99 instead of $3. Many will buy the former. You can check our full article about Psychological Pricing Tricks.

This strategy is driven by the client’s emotional response. This pricing makes a customer buy something believing it is cheaper, although it is not. It is one of the most widely used techniques. For instance, Apple products are priced using the “$999” model.





Competitive pricing means using your competitors’ prices to set your own.This method is common for companies selling identical products or close substitutes that have the same level of satisfaction. It is also common for goods that have been in the market for a long time, leading to the entrance of many competitors.

This pricing can be used to sell hardware at a loss if you know the software will sell at a higher price resulting in overall profit. CDW Corporation uses this pricing strategy to sell technology products and solutions and services to various businesses.

In an online world where visitors compare A LOT before purchasing, competitive pricing has turned out to be crucial for e-merchants.

If you need help monitoring your competitors’ price, do not hesitate to contact us to get a quotation: WorkIT Software helps +180 e-commerce customers (brands or distributors) tracking their competition price.




Value-based pricing is based on the estimated value of a product to the customer, instead of the cost or historical price. Value-based pricing means setting a price that most consumers are willing to buy at.

This pricing method is ideal for companies producing goods with unique features to meet customers’ expectation. Also companies in the brand-conscious segment such as Under Armour use this strategy. Their customers buy their products at higher prices because of the integrity and brand of the product, which they feel they will be unable to find anywhere else.




Relative pricing involves pricing a product regarding another. It is an opportunity cost. An increase in the price of a given product without a corresponding increase in the price of other commodities is an indicator of the relative price increase. It is not recommended to charge low prices.

Many companies try to copy others when setting and changing their prices. When you price above the level of your rivals, customers will link it with luxury, quality, and prestige. Apple uses this strategy when pricing their products. Their products are more expensive than others, and their clients associate that with quality.



It is also called Keystone or mark-up pricing. It includes the calculation of the cost of a product and adding a mark-up. This technique sets a price that is higher than the cost of production and gives a certain level of profit for a company to reach a given rate of return.

Higher mark-up price is recommended for online businesses facing a slow rate of turnover, have significant shipping and handling costs, and have scarce products. This strategy ensures you are always making a profit. McMaster-Carr uses this approach to supply industrial and commercial products worldwide.




A study was done to test the power of 9. An item was selected and tested at three different price levels, $34, $39 and $44. The one selling at $39 made more sales than even the one that was selling at $34. Even when included at discounted prices, the number 9 outperforms others.

Many online companies use this number in their prices. This has helped them make more sales than when they would have used other numbers. This technique is more efficient in price-conscious markets than in other markets.




Under this technique, the seller changes the price depending on specific factors within its environment.

The demand for particular products changes depending on the time of the year. Also, product demand and price is affected by other products offered at that place.

Under this strategy, the price of a product is affected by other factors and not the product alone. In e-commerce, an update on the website and branding may make your products appear more elegant and luxurious hence justifying a price increase. For instance, during Valentine or Black Friday, pricing evolve a lot.




Loss-leading pricing involves selling particular products below their cost to attract more buyers who later buy the most valuable goods. Price is an important determinant of demand. Low prices lead to high demand for a product. This technique aims at creating new visitors to an online website. It can be done by giving free products to induce subscription.

This pricing is ideal for firms that want to penetrate a given market, to introduce new products or to dispose of the old stock. It enables new businesses to get new customers for their products. Amazon has successfully used this strategy to grow. The 2014 Fortune 500 list ranked Amazon number 35.




It is also referred to as real-time pricing and involves setting prices that are highly flexible. This strategy aims at allowing price changes over the internet depending on market demand. This pricing method uses bots to change prices depending on the business rules. Bots are software agents who collect data to adjust the price of a product correctly.

This pricing is the best one to ensure profitability. Out-of-stock situations are the best times to raise prices as customers are looking for these products on various websites. During festive seasons, e-commerce sales depend on this strategy to make simultaneous pricing decisions.




Under this pricing method, decisions are based on the first piece of information that a customer is offered. The price of one product is contrasted with that of another product. Studies have shown that the clients are affected by the price of other close items when valuing a given product.

Anchor pricing allows sellers to place premium products near standard ones helping customers see the difference. This strategy is ideal when introducing a new product. Aweber uses this technique in assisting their clients in choosing their preferred advanced pricing plan.




To be successful in e-commerce, you need to regularly monitor market conditions and carry out the necessary changes to remain competitive. Each pricing strategy has its strengths and weaknesses, and you might need to test a few different ones to find the best strategy which will fit your business.


Competitive Price Intelligence: 7 things to know

Competitive Price Intelligence: 7 things to know

Competitive Price Intelligence is the practice allowing a company, a retailer or a brand, to track competitor’s prices on a permanent or regular basis, in order to monitor its position within the market relative to competitors.



Hence, a retailer can get insights into the market it operates in and adapt its distribution strategy so to gain competitiveness. On the other end, a manufacturer can control its retailers’ actual pricing strategy for its own product range. That is why the use of competitive price intelligence tools is essential to develop an efficient sales strategy and constantly help secure its position on highly-developing markets, or to optimize the profit margin, on busy and competitive markets.

Given the increasing demands from the market, companies are now struggling to perform this practice manually. Indeed the quantity of data to process and the booming e-commerce market prevent them to do so. Therefore they now turn more and more to external solution providers, who bring them the intelligence they need whenever they need it.




This method is mainly used by retailers seeking to position themselves on their market, but also by manufacturers seeking to monitor their products’ sales performance, as well as the respect showed by their distribution network for their trade policy. Some retailers may also use conversion rate optimization tool to optimize their performance, such as Omniconvert.
For example, in Europe, the main players of the volume retailing industry actively use competitive price intelligence to monitor constantly their market position: CDiscount, Dixons, ShopDirect, Fnac, Bosch, Sony, Samsung and many others…



The use of competitive price intelligence tools allow to better understand the pricing strategy of the different players on a target market. Made aware of the market’s evolution and trends, the company is empowered to adapt its sales strategy accordingly, so to increase its product mix and product range’s competitiveness, and monitor the performance of its pricing and sales policy.

Technological advancements make the competitive price intelligence process much easier, thanks to new specialized software. They allow companies, brands and retailers, to take a deep dive into analyzing their own positioning on the market, as well as their competitor’s, at different levels: mix, range, products, etc. This way, companies are provided with a clear vision of their market’s state, their competitiveness and positioning relative to the competition.

Therefore, competitive price intelligence allows the players of volume retailing industry to always stay aware of markets moves, especially during periods of intensive promotional activity (sales, New Year etc.), and optimize their prices accordingly. This help them maintain, nay increase their margin ratios. Finally, companies are also able to ensure consistency.



Over the last few years, the boom in e-commerce activities has deeply transformed the retailing industry. In 5 years, the number of online retail stores has been increased by more than 3, and the French online business industry has, by itself, more than 100,000 retailing websites, more than 75% of distance selling industry. On top of that, Internet forces the retailing industry to be constantly more flexible and responsive, which increases the brands and retailers’ needs for an efficient price intelligence strategy, especially against their fellow e-commerce players.

In an interview dated November, 24th, 2014, Bernard Euverte, President of WorkIT Software, a software provider specialized in competitive market intelligence, states that at first:
“Nobody cared about online prices, e-retailers were contenting themselves with being the least expensive as possible, and brands were hardly paying attention to e-commerce. Internet has quickly established itself as THE market reference for pricing strategies, even in brick-and-mortar retail stores”.

In fact, e-commerce empowers consumers to easily compare e-retailers’ products, offers, and prices, leading to an increased market’s dynamism and volatility. Faced with increased competitionprice has become a key-element in buyer’s decision-making process. That is why it is now necessary to track market prices changes in an efficient way, so to respond quickly and stay competitive; this makes the use of price intelligence software quite crucial in volume retailing industry, especially when it comes to e-commerce.



Price Intelligence software track and collect market prices on the internet, on a frequent basis, and reflect them back to the user through the interface, providing him with a real-time vision of its positioning compared to the competition.



This way, the Price Intelligence software user can get insights into his own positioning within the market, but also his competitors’, through the analysis of the reported data according to some specific criteria of his choice, and then conduct a market survey which allows quick and well-considered strategic decisions.

The user is then able to optimize his offer at different levels. In the example of a retailer:

  • To monitor the market aggressiveness and adapt its sales strategy accordingly, in order to secure profit margin with regards to competition.
  • To optimize its product mix for special events (Christmas, Valentine’s Day, Back To School, Black Friday, …) so to answer its market’s needs.

Brands, on their end, can monitor their products’ positioning within the market, by comparing them with similar items offered by the competitors’ and measure their retailers’ efficiency and performances, or even their products’. This process also allows them to make sure, regarding exclusive distribution agreements, that only authorized dealers are selling the products in question.

Ressources :

  • WorkIT’s price monitoring software