Dynamic Pricing for Online Retailer

The problem

This D2C beauty brand was pricing products statically, updating prices maybe once a quarter. They were leaving money on the table during high-demand periods and overpriced during slow periods. Competitors were adjusting prices daily.

What we built

We built a dynamic pricing system that analyzes demand signals, competitor prices, inventory levels, and margins to recommend optimal prices. The system A/B tests price changes automatically and learns what works. Prices update every 6 hours with guardrails to protect brand perception.

Tech stack

Results

Gross margin improved 4.2 percentage points without hurting conversion rate. Revenue increased 12% in the first year. The system automatically avoids price wars while capturing value during peak demand. Pricing decisions that used to take weeks now happen automatically.