Implementation of the algorithm
The second stage is the implementation of an algorithm to select product suppliers. In most cases, the deciding factor will be the price (often this means – the lower the better, because then the price automaton will lower the price and allow to generate more profit by increasing the volume of sales), but not always. If, for various reasons, the script (price automaton) is not able to make a selection based on price, it will use criteria such as
– the current availability of goods in the supplier’s warehouse (in the case of a shortage of goods in competing shops, the price machine can increase the margin without losing its position in the rankings of price comparison sites or e-commerce customers who care about the lowest possible price);
– the time it takes to process a particular order
– logistical minimum (minimum quantity or value of goods at which a purchase can be made on more favourable terms)
– trade credit (a contract involving the delivery of goods on deferred payment terms)SS
– the selling price in the shop, which is the purchase price plus a margin for a given supplier