“Adding Dynamic Pricing capability to existing web storefronts + shopping sites helps drive new incremental revenue and heightened customer engagement.”

Kevin Smith, Senior Partner, Commerce Dynamics

The Opportunity

We have all experienced prices changing rapidly; from hotel rooms to flights to concert ticket prices. Dynamic pricing is here to stay.

A growing number of Internet Retailers are empowering their eCommerce venues by 'bolting on' dynamic pricing to their existing eCommerce offering.

Customers of these retailers are also experiencing a highly engaging and rewarding experience creating multiple new 'touchpoints' to drive customers back to the eCommerce sites with greater frequency.

The Method

The "Open Canvas" dynamic pricing platform developed by CDI and perfected for our clients:

By introducing dynamic pricing as an addition to existing eCommerce storefronts, some of our clients (Dell, Major League Baseball (MLB), and Fanatics) are generating significant new revenue, generating increased customer engagement, and maximizing value for specific products and SKU's.

Rather than using a traditional fixed price model, our clients are using several powerful dynamic pricing methods including:

  1. Supply based pricing – if supply is greater than anticipated, merchandisers can leverage the system to automatically drop the price until a certain sell-through rate is achieved.
  2. Demand based pricing – if demand is great for a set of SKU’s, merchandisers can leverage the system pricing algorithms to automatically raise the price to maximize product margins.
  3. Consumer determined pricing – Auctions remain a powerful and engaging method to drive revenues and engagement. Pricing is determined by competitive bidding.
  4. Group-buying pricing – Pricing is based on a certain number of consumers agreeing, in advance, to buy a specific SKU at a specified price. Similar to the groupon.com model.
  5. Other: reverse auctions, progressive declining price etc.

The Proof and Results:

The ecommerce sites below have added dynamic pricing alternatives into their existing eCommerce offering:

Fanatics Auction
MLB Auction
Dell Auction
Platform Integrations:
Magento
Shopify
Open Canvas
Contact us now at info@commercedynamics.com to find out how we can add Dynamic Pricing to your eCommerce initiatives.