Dynamic Pricing

Overview

Dynamic pricing automatically adjusts product prices based on demand signals, inventory levels, competitor prices, and business rules. The goal is to maximize revenue per unit sold — raising prices when demand is strong or inventory is scarce, and reducing them to clear slow-moving stock. Most Shopify and WooCommerce merchants accomplish this with a repricing app rather than custom code. Custom implementations are reserved for headless storefronts or merchants with unique repricing logic that apps cannot handle.

When to Use This Skill

• When high-velocity SKUs lose revenue because prices are set-and-forgotten while competitors adjust hourly
• When you need to liquidate slow-moving inventory through automatic markdown schedules
• When running a marketplace where seller prices must respond to competitive pressure
• When building a revenue management system for perishable or time-sensitive inventory
• When A/B testing price elasticity at scale and needing a framework to safely roll out price changes

Core Instructions

Step 1: Determine the merchant's platform and choose the right tool