Dynamic pricing involves adjusting prices in real time based on demand fluctuations, competitor prices, and inventory levels. This strategy is commonly used by e-commerce platforms that frequently adjust prices during high-traffic events like holiday sales or flash sales. By implementing dynamic pricing, retailers can respond to market demand without manually adjusting each price, allowing for more accurate and timely price changes.

Originally Published at: https://sciative.com/research-articles/retail-price-optimization-for-profitability-and-growth