Dynamic pricing
Dynamic pricing is a pricing strategy in which a seller adjusts prices continuously based on signals such as demand, competitors' prices, stock levels or time, rather than keeping a fixed price. The price of the same product can therefore differ from day to day — or hour to hour — depending on what those signals do.
How it works
A dynamic pricing system combines inputs — competitors' current prices, own stock and cost price, demand and conversion, seasonality — and applies rules or an algorithm to set a new price within boundaries the seller defines, such as a minimum margin or a price floor and ceiling. The quality of the output depends directly on the quality of the inputs: a repricer fed with wrong competitor prices will confidently set wrong prices.
Where you encounter it
Airlines and hotels have priced dynamically for decades (yield management based on remaining capacity and booking moment). In e-commerce it is standard practice on large marketplaces and among major retailers, where prices of fast-moving products change frequently.
Dynamic pricing vs repricing
Repricing is the operational, competitor-driven subset of dynamic pricing: automatically following or undercutting competitors' prices, typically on marketplaces. Dynamic pricing is the broader strategy that can also weigh demand, stock and time, independent of what competitors do.
| Dynamic pricing | Repricing | |
|---|---|---|
| Primary driver | Multiple signals: demand, stock, time, competition | Competitors' prices |
| Typical setting | Own webshop, travel, retail | Marketplaces (Amazon, bol) |
| Goal | Optimize margin and sell-through | Win the buy box / stay competitive |
How PricePatrol fits in
PricePatrol is not a repricer — it supplies the ingredient every pricing decision depends on: reliable, current competitor prices per product and per shop, with honest reporting when a price could not be fetched.