In this podcast, Sniffie founder Tomi Gronfors shares his insights on helping more than 600 ecommerce retailers implement pricing automation strategies.

Dynamic pricing is a strategy where ecommerce brands adjust the prices of their products in real-time based on various factors such as demand, competition, market trends, and customer behaviour.

By implementing dynamic pricing, brands can optimise their pricing to better match what customers are willing to pay at any given moment. For example, during peak shopping periods like holidays or special promotions, brands can increase prices to capitalise on higher demand.

Conversely, during off-peak times, prices can be lowered to attract more buyers and move inventory. This flexibility helps in maximising revenue by ensuring that prices are always aligned with current market conditions, ultimately driving more sales and higher profits.

There is da Vinci quote used in Nick Kolenda’s book on pricing psychology that sums up what I’m talking about in this video masterclass: “All our knowledge has its origin in our perceptions” Pricing is perception. How we each react to the same price can be different, depending on our perspectives. For this reason, price doesn’t have an absolute meaning. And if we understand what shapes perception, we can influence how price is perceived. This video explores ten practical ways this applies to ecommerce stores. [01:10] Your building blocks for understanding price [02:40] 1. Price fluency [03:45] 2. Price structure and simplicity [03:45] 3. Anchor high prices with larger numbers [06:30] 4. Break pricing into smaller units [07:15] 5. Use words of a small magnitude [08:25] 6. Alliteration creates a pleasant sensation [09:20] 7. Put the larger WAS price on the left [10:25] 8. Break down product costs [11:50] 9. Encourage customers to spend early [13:10] 10. Emphasise the most popular pricing option

The latest from our monthly ecommerce mini-series, where experienced ecommerce consultants James Gurd and Paul Rogers step back to summarise what’s been happening within the ecommerce industry in February.

Ecommerce is a fast-paced industry, with constant change, new market entrants and incumbents updating their products with new features and fixes. James & Paul spend a lot of time looking at ecommerce strategy and technology, talking to agencies and technology vendors, so this series is a digest of what they’ve found interesting, what ecommerce teams should be thinking about, as well as highlighting interesting stories and cool tools they come across in their day-to-day work.

Any questions, please let us know via LinkedIn or using the form on our website https://insidecommerce.fm