Machine Learning for Dynamic Pricing in e-Commerce

Abstract

Dynamic pricing is a long-term pricing model that can increase the conversion rates of your e-commerce store. You can use A.I applications to offer different prices for the same product to different customers, depending on unique personal factors. Advanced applications should take into account many other factors, such as the prices charged by competitors that buyers have previously sponsored, the current demand for the product, cross-price elasticity, halo ratios, and so on. Some AI-based dynamic pricing models can also implement in-depth learning capabilities to deduce the prices that each customer will be willing to pay for a product or service at some point.

Keywords

• dynamic pricing
• e-commerce
• machine learning