E-Commerce Price Optimisation

In the tough world of e-commerce, dealing with price elasticity is a complex challenge. Lots of sellers are all fighting for shoppers, and even small changes in prices can seriously affect how much of the market a retailer grabs and how much money they make.

It’s not just about prices, though. Keeping the right amount of stuff in stock is a constant challenge. You want to have enough so customers can get what they want, but having too much can lead to having to sell things at a discount to get rid of them. Getting this balance right is key to playing the price elasticity game well.

And it’s not just about having the lowest prices either. E-commerce is a race to offer the best overall experience. That includes things like making it easy for customers to find what they want, giving them personalized suggestions, and getting their orders to them fast. All of this affects how customers see the value of what they’re buying, and that, in turn, affects how price changes will impact sales.

To stay in the game, retailers use special deals and discounts. These can boost sales in the short term, but can affect profits and margins. It’s tricky to use these deals to stay competitive without getting an holistic view, beyond your own data boundaries.

Retailers need to keep an eye on what’s happening in the market, what competitors are doing with their prices, their stock, their discounts etc… It’s not just about looking at the past, it’s about predicting what might happen next and being ready for it.

Snowflake is instrumental for those organizations unifying various data sources for understanding market dynamics. With real-time data processing and integration with advanced analytics and machine learning, Snowflake enables retailers to swiftly adapt pricing strategies not only with their first party data but also through direct access to competition information with Snowflake MarketPlace, using Partners like Bright Data.

Bright Data is a web data platform that helps businesses access and utilize public web data. It’s incredibly powerful and provides a convenient way to get custom public data for various uses, such as enriching data and feeding AI/ML initiatives. Bright Data integrates with Snowflake, allowing you to publish data directly into your Snowflake account.

This short video demonstrates a Streamlit application (SIS, Stream in Snowflake) to predict price impact on demand and profit. It introduces Bright Data capability to enrich the model by acquiring competition public information.

Bright Data (@bright-data)