Dynamic pricing also referred to as demand-based pricing, is a pricing strategy in which flexible prices for products or services are based on current market demands.

Dynamic pricing is a flexible approach to the revaluation of goods, based on the use of different pricing strategies and tactics, depending on various events occurring in the using

For example,

the nearest competitor has reduced the prices of the products crossing with ours or launched a sale campaign, or vice versa he has increased the prices, because the stock runs out – using dynamic revaluation it is possible to react quickly to these events by reducing or increasing own prices, taking into account the the the company’s global aims at the moment and in the future.

According to statistics, the use of this approach to pricing increases the company’s profit by 25%, and on the flip side – without dynamic this approach, the online store becomes very vulnerable to the actions of competitors, increases the number of erroneous decisions, the human factor and as a consequence a decrease in company profit.

A dynamic pricing system includes the following important elements:

  • Current market analysis;
  • Creation of pricing strategies based on the results of ongoing market analysis and global business strategy;
  • Product pricing process;
  • Analysis of sales and optimization of selected pricing models and tactics.

Pricing Strategies

Re-evaluating products according to a predetermined plan is called a pricing strategy. Any strategy must, among other things, take into account the overall strategy of the business as a whole. As a rule, any strategy is based on a minimum of five components:

-Inventory inventory and availability of goods from suppliers;
-Prices, marketing activities, and availability of competitors’ products;
-Profile of the customer of interest, purchase history, and interactions;
-Sales history of the products and product groups, the effect of seasonality;
-Threshold of acceptable for the company marginal profit for sales of certain goods;

The use of these data or their combinations allows us to create effective and achievable, at the right time, pricing strategies.


As a tool for the dynamic revaluation of goods is a specialized software that provides online tracking of prices and availability of goods from competitors and suppliers and applies the pricing strategies embedded in it. Such software allows the specialist responsible for the revaluation of goods to manage the pricing process with the least time consumption and the minimum possible number of errors, which is especially important with a large number of goods sold.


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