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Pricing

It’s no longer OK to price a product once and mark it down once. Retail pricing is now a volatile area in retail. Often, merchants must be on their toes and ready at a moment’s notice to update product prices in order to remain competitive. New pricing solutions are helping retailers determine initial product pricing, then figure out how to adjust and readjust pricing during the entire product lifecycle.

E-Commerce’s $200 Billion Problem: One That AI Can’t Solve

Anytime I read the trades, glance at news headlines, or talk to other executives, AI seems to be the solution to all of our problems. Everyone is talking about AI. Emerging tech companies now have AI solutions at their forefront, but for companies looking to expand their e-Commerce reach globally, especially within emerging markets, AI is not the solution. When it comes to e-Commerce issues, specifically at the local level — frequent cart abandonment, low payment conversion rates due to network instability, consumers’ inability to pay with the right credit card — we can't wrap them in an AI blanket. These problems can only be solved through offering locally-relevant solutions that minimize friction at the checkout.

How A 40M Decrease In Email Promos Increased Revenue At TUMI

Working to deliver a more relevant customer experience, TUMI was seeking to consolidate business functions “that have a direct relationship with the customer on a 1:1 basis,” noted Charlie Cole, Global Chief eCommerce Officer at Samsonite and Chief Digital Officer at TUMI. “We thought all these functions should live in one place,” he explained, “including online analytics, customer service, sales (retail/online/outlet/drop ship), warranty, repair, email send/open/click, social graph data…” Finding the right solution was a challenge, Cole explained: “We didn’t necessarily know where in the vendor landscape we were going to end up, so we talked to all sorts of partners, including email, personalization, more traditional CRM, etc.” After a thorough search, Cole and his team landed on the Customer Data Platform (CDP) from AgilOne. In this Q&A, Cole shares his learnings and results from the implementation.

Marks & Spencer Leverages Predictive Analytics Platform For Buying, Pricing Decisions

  • Published in News Briefs
Marks & Spencer (M&S), the UK-based department store, has expanded its partnership with First Insight, a platform designed to help retailers make better product development and pricing decisions. M&S has been using First Insight’s predictive analytics to support design, buying and pricing decisions on categories including apparel, lingerie, footwear, accessories,…
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Top Predictions For AI, Big Data, Pricing By 2025

I’ve been in the retail pricing industry for the past 40 years as an entrepreneur and tech innovator. I wanted to share with you where I think AI, Big Data and Algorithmic Retailing are headed in the next few years, and I’m going to make five predictions about the state of the industry and what it is going to look like in 2025. [To view the video of Ken’s predictions, go to: http://www.engage3.com/5-big-predictions-for-the-retail-industry/]

As Tesco And Carrefour Create Strategic Alliance, Will Grocery ‘Price Wars’ Hit Europe?

European grocery giants Tesco and Carrefour have partnered to “create a long-term strategic alliance” designed to improve product quality and choice and to lower prices for consumers. The agreement will allow both companies to strengthen their negotiations with their suppliers and create “significant opportunities” for them, according to a joint…
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Supreme Court Sales Tax Ruling Hits Small Online Players, Boosts Brick-And-Mortar

A U.S. Supreme Court ruling may put a larger burden on even the biggest e-Commerce players by eliminating one of their biggest advantages — pricing. Online-only retailers will now be required to collect sales taxes even in states where they don’t have a physical presence, the Court ruled. In a 5-4 ruling against Wayfair, Overstock.com and Newegg, the justices overturned a 1992 Supreme Court precedent from Quill Corp. v. North Dakota. Quill had barred states from requiring businesses with no "physical presence" in that state — such as out-of-state online retailers — to collect sales taxes.

The Ongoing Saga Of Food Waste In Grocery: Standardized Food Date Labeling, Dynamic Pricing Could Save the Day

We’ve known for quite some time that food waste is a growing global issue, impacting the world’s economy and environment. The U.N. Food and Agriculture Organization reports that processing wasted food generates 3.3 billion tons of greenhouse gases annually worldwide. In the U.S. alone, up to 40% of the food produced ends up uneaten and tossed to the trash. The Natural Resources Defense Council tells us that the amount of food thrown away every year in the U.S. equals approximately 20 pounds of food per person, every month!

59% Of Shoppers Won’t Buy Items With ‘Arbitrary’ Prices

When shoppers perceive that an item’s price is unfair or arbitrary, a majority (59%) will refuse to buy the product. However, they will accept price increases or decreases that remain within a “fair” range, particularly if the changes are based on data science, according to a Forrester Consulting study that examined consumer attitudes toward pricing and promotions. An original survey in May 2017 queried 1,250 shoppers in the U.S., UK, France, Germany and Brazil and Forrester followed up with additional research in April 2018. Key findings included:

GroundTruth Launches Performance-Based Pricing Models Suite

GroundTruth, a global technology platform designed to drive offline visits and sales by leveraging location as the primary source of intent, has unveiled a new suite of performance-based pricing models called True Performance. The solution is designed to leverage location-based marketing to allow advertisers to pay only for results or actions that precisely meet their business objectives.

4 Market Conditions Retailers Must Understand For Successful Sourcing

“Source. Sell. Repeat”. This, in a nutshell, is what e-Commerce — or any commerce for that matter — is all about. For thousands of years, people have made a living by sourcing products and selling them. But while the basic idea remains the same, the tools of the trade change constantly. In fact, the pace of change keeps accelerating. For the past decade or so, data has been the name of the game. With the ability to track the entire workflow and break it down into components came the ability to understand the weak points in the funnel. This understanding is the first step on the way to optimization. Even minute changes can increase margins and contribute to profitability or reduce inefficiencies.

Russian Hypermarket Chain Sharpens Pricing Strategy

  • Published in News Briefs
Following a successful pilot in 2017, Lenta is sharpening its customer-focused pricing approach by deploying Revionics Price Optimization across all of its hypermarkets and supermarkets this year. The retailer will be positioned to leverage advanced analytics services powered by AI and machine learning, which includes:
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First Insight Introduces ElastiCast Pricing Optimization Platform

First Insight has released ElastiCast, a solution designed to enable retailers to forecast price elasticity of new products to determine optimal prices and increase margins. By collecting consumer data and processing it through First Insight’s proprietary algorithms, ElastiCast enables merchants, planners and marketers to analyze various pricing scenarios and predict how consumers will react to different price points throughout the product’s lifecycle — from initial pricing to markdowns to clearance. These results enable retailers to see the distribution of demand before they go to market, so they can set prices based on data.

Amazon Brings Prime Delivery Challenge To Grocery Industry

A long-awaited result of the Amazon-Whole Foods acquisition is finally here: Amazon will start delivering groceries from Whole Foods via its Prime Now one- and two-hour delivery service in select markets, including Austin, Texas; Cincinnati; Dallas; and Virginia Beach, Va. The service is expected to expand into more U.S. markets throughout 2018. Prime…
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AI-Driven Analytics: Taming The Wild World Of Grocery Data

When it comes to gathering data, few retail categories handle a greater volume than the grocery business. With potentially hundreds of thousands of SKUs and millions of transactions, it’s no surprise that supermarkets have been at the forefront of many important data-driven innovations over the decades, from barcode scanners and panelist data to loyalty programs and even the humble coupon. But this is also a crowded marketplace with fierce competition, including brick-and-mortar specialty food retailers and the expansion of grocery sections in big box stores. Then, of course, there is the loud march of e-Commerce into the grocery space providing a myriad of pickup and delivery options, while the biggest online behemoth, Amazon, is shaking up the entire space with its recent acquisition of Whole Foods. Grocers are well aware that in order to keep up, they need to leverage their hard-earned data and glean the best insights from consumer behavior and shopping preferences.
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