When it comes to selling in online marketplaces, it’s all too often a race to the bottom. There are plenty of rules-based tools out there to help sellers on Amazon or eBay beat competitors’ lowest prices by the proverbial penny, but winning the deal in that way sacrifices flexibility and profits.
That’s Feedvisor’s take on the topic, and it’s why the company recently came out with a machine-learning based approach to setting prices for Amazon Marketplace sellers. It says it’s the only re-pricing solution on Amazon to leverage the technology in Version 2 of its Algo-Pricing software, which aims at helping sellers win buyers without necessarily driving them into pricing wars.
“We came up with the idea of looking at artificial intelligence because we realized that trends — such as a specific item becoming popular very quickly or sellers running out of stock — play a very, very important role in predicting upcoming price changes,” says Feedvisor director of marketing Shmuli Goldberg. “The market itself is constantly changing. Just looking at a snapshot of what is going on right now is extremely useful, and it’s what we’ve been doing until now. But if you have just a bit of historical context and the ability to predict upcoming trends, you can do things that other re-pricing software hasn’t thought of, like raising the price of a product you see is just about to become popular.”