How Artificial Intelligence Can Reduce Stress From eCommerce Pricing How Artificial Intelligence Can Reduce Stress From eCommerce Pricing
With modern temps of life, to have a deal with eCommerce pricing could be quite stressful. Charging a too high price and you lose... How Artificial Intelligence Can Reduce Stress From eCommerce Pricing

With modern temps of life, to have a deal with eCommerce pricing could be quite stressful. Charging a too high price and you lose all your clients, too low price and you lose your business. What would you choose: to spend your company’s time on monitoring competitor’s stores or to use AI with real-time analysis? Well, most businesses have already said “Yes” to artificial intelligence. The market is growing exponentially, and according to a forecast, will grow over $17 billion by 2020. There are a few really important reasons why businesses should pay attention to AI.

Monitoring

How to find a perfect price that can satisfy both you and your customers? Trial and error do not work anymore. While you are trying, competitors are earning the money. No one sends the secret shoppers to investigate competitors’ prices anymore. Even online tracing became useless with increasing numbers of products. You have to make fast decisions if you want to stay in the global marketplace. Thus, your business needs a deep and real-time analysis. AI can adapt to your needs and analyze prices in your area or in the global market, take into account seasons or sales periods, ф requirement of specific products, etc. This AI tool will gather Big Data and make conclusions for the best price decisions. Price-monitoring algorithms will bring you all necessary information 24/7 quickly and easily.
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Optimization

Purchase decision very often depends on the customer’s habit. Usually, people are looking for numbers similar to the past bargains or to the other websites. And there is the place where we can make some predictions, or more specifically, predictive analytics. For example, there is a jacket for $278 in your online store. The AI tool collects whole information about a potential customer and makes a conclusion that the client is looking for jackets in $320 price range. In this case, an offer of $300 will satisfy both of you. Furthermore, by improving customer experience you will get the client back to your store. In the case your predictive tool is saying the customer is looking for the same product in the $250 price range, you can keep the previous price level, and the customer more likely will buy the jacket. The tool can define the highs and lows based on the acceptable profit margin.

Flexibility

The desire to buy a product depends not just on the price level, but also on how much clients wants the product. The more customers need it, the more they will accept your price. Assume, the person likes to buy a new home furniture but already own everything is needed. Most likely this person won’t buy your chair for $260. However, the same chair for $230 could attract him. How can you know about these features? You only need to adjust AI system according to the request. In another case, customers are looking for a washing machine in $500 price range but will pay $600 if it’s the lowest price in their area. AI analytic tool will help to understand how flexible a price can be for this product, customer’s expectations, market factors and allow to correct a price in the real-time mode.
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Specificity

Another convenient AI tool is an automatic rules-based pricing. Standard rules-based prices depend on your competitor’s price. If other sellers drop the price from $50 to $40, your numbers for the same item could be $36. AI can not just automatize this process but do much more. What about prices, dependent on a product review or a social networks feedback? If everyone is tweeting about your item and looking where to buy it, you should know about that. AI tool can gather this information and make a suggestion about a new price. Also, you can get a more specific report. Assume, your competitor drops the price on specific green bags to $25. But your AI tool says there are is the potential customer who wants to buy the same bag but pink – he’s just posted a social media message he doesn’t want to buy standard green. If you have the pink bags when your competitor sells just the green ones, it is a good sign to keep your price on the previous and higher level.

On-target

As can you see, in the modern exponentially growing market it is impossible to be on the top using technologies from the previous ages. The AI-based price analyzing system is a fast, convenient, and trustful tool for those businesses who want to stay up-to-date. Only Artificial Intelligence is able to collect and analyze whole torrents of necessary data and provide you with the best conclusions. Qualitative and properly adjusted AI tool is the wise decision for those who want always to hit the target.
Original post here.
Ralabs

Ralabs

We solve challenges for Fintech industry using data science and machine learning. We are Ralabs, your reliable partner in the ever-changing world of Financial Technology. https://ralabs.org


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