March 29, 2020
Latest Ecommerce Pricing Trends | BlackCurve

Latest Ecommerce Pricing Trends | BlackCurve

In 2015, ecommerce in the United Kingdom was
worth a whopping £133 billion. With economists predicting an increase of 11%. The rate of growth actually surpassed this
prediction, as 2016 saw an increase in ecommerce of 16% across the year. Intellectuals predict a further 14% increase
for 2017. Ecommerce has undoubtedly reshaped the entire
buying process for the consumer. But what ecommerce pricing trends have we
witnessed this year? We have seen an increased investment in dynamic
pricing technology. Instead of ecommerce companies manually calculating
prices, online retailers are investing in pricing software. This allows them to set up pricing rules that
crunches their data set at regular intervals and recommends that optimal price point. Gone are the days of focusing on just their
top-selling items, dynamic pricing technology is enabling ecommerce businesses to focus on
the entire product portfolio. This enabled ecommerce companies to use more
advanced pricing algorithms. Gone are the days of just benchmarking against
costs and competitor prices. We’re seeing pricing decisions being made
by crunching fast data sets such as sales history to identify elastic and inelastic
products. The use of Google Analytics data in pricing, to
access the link between page conversions and prices. How Google AdWords spend can play
a factor to name a few. We seeing ecommerce companies changing prices
more frequently and the online environment is very different remember to the high street. Prices can change as often as hourly, as nothing
to stop that from happening. Amazon is known for using pricing to its limit
through its dynamic pricing models. In fact, the company is known to change over 2.5 million
prices per day. This way Amazon is optimising the amount of
profit it makes through strong and effective pricing strategies. A Times article showed the results of the
analysis of 100 randomly selected toys, books, DVDs and other products. They found the prices fluctuated by as much
as 260% in a year between the highest and lowest points leaving customers who bought
at the wrong time £100s out of pocket. The research also found that the biggest single
price variation was on a Stand Up Paddle Board. Which could be bought for as little as £234.87
or as much as £699 – a difference of £463.13 over the course of the year. Now if Amazon is doing it, why aren’t you? The term “Machine Learning” is becoming more
and more common. Rather than relying on humans to identify the optimal selling point, machine
learning is becoming more prevalent. Although the technology is still in its early
days and often the projects being completed by larger ecommerce players, in conjunction
with universities. There is certainly a push to see what extra
margins can be identified by the intelligence analysis of the learning computer code over
the human. Thanks for listening. To find out more about BlackCurve and our dynamic pricing technology for ecommerce companies, please visit Thank you

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