What is price automation in an e-commerce store?

Having an e-commerce store is a time-consuming business – the order process, complaints, products cataloging take a lot of effort and energy. All because it demands a human factor. The element that goes with the product price update that can be automated by computerizing the task. What are other elements? How does the automation process look like? Let’s start!


Which functions can be automated?

The new software allows a lot of processes to be automated, especially those which are connected with the pricing policy of a shop. Based on the well-categorized stock and the control of an expert administrator, the computer can:

  • Automatically match the client with a certain price group

  • Download the pricing list from suppliers, both purchase price and retail price

  • Margin individualization for certain products and categories

  • Set the retail prices based on the purchase price and set margins

  • Set and modify the prices depending on the location from which come the clients

  • Automate discount offer

  • Test price level




How to automate the price choice?

The first step in the automation process is to implement the module that manages the offer in the shop. All based on the price offered by suppliers and the height of margin set by the owner.

The second step is to implement an algorithm that chooses the product’s supplier. In most cases, the deciding factor is the price (the lower, the better). But not always – if the script won’t be able to make a choice based on the price level it will take into account the following criteria:

  • Currently available goods in the supplier’s warehouse

  • The logistics minimum (the minimal amount or value of the good when there is a possibility to purchase with better price conditions)

  • Mercantile credit (the agreement that set the delivery of good with the deferred payment time)

  • The sales price in the shop that is the purchase price plus the margin of a certain supplier

Other modules that automate the pricing policy in the e-commerce shop that are possible to implement to automatic modules are discount and sale creation of the module to test the most attractive sales price.

To sum up, the process of setting prices, price offers, discounts, and sales in the online shop are one of the many processes that can be automated when using the right software. Having the software is connected with costs but the benefits outweigh it. In the long term, you save energy and money. What is more, the things that were time-consuming or impossible to do by the employee are done by the script and the employee can be delegated to do other tasks – those which cannot be done by the machine. A good example of such a task is the direct customer service.