bindCommerce allows the automatic recalculation of the prices to be applied to customers, on the various sales channels, based on 2 alternative algorithms.
Lowest price
In the event that the sale price is linked only to suppliers (not to competitors), the algorithm that bindCommerce will be able to apply expects to calculate the "lowest price obtained starting from the proposed purchase cost of the cheapest supplier who has actual availability of warehouse".
The starting point is the suppliers' commercial offers, consisting of: prices, stock availability, shipment preparation times and commercial conditions for shipments.
Given these inputs, bindCommerce can compare one or more suppliers, determining their eligibility for determining the offer to customers, and the relative basic cost. It is also possible to exclude a certain supplier if it does not declare at least a minimum stock of each item under consideration (useful for mitigating stock-outs due to suppliers who update their inventory too slowly).
The sale price is calculated by applying a multiplier and a possible constant to the cheapest cost.
The result obtained can be rounded to the second, to the first decimal, or to the whole value.
For further security, it is possible to compare the calculated price with "safety limits" (lower or higher) set through fixed parameters or checklists.
The result obtained, for each item, includes the following values: sale price (including shipping cost), stock availability and preparation times.
Profit maximization
When, in addition to the above parameters, terms of comparison with the competition are available, it becomes possible to apply the algorithm that seeks to achieve profit maximization, calculating the "maximum price allowed, observing the competition, without going below the price in relation to cost".
This algorithm also adds the maximum price as a parameter, which for example could be the list price (possibly increased).
The final price can therefore fluctuate between the minimum price (related to the cost) and the maximum price (decided arbitrarily), mitigated in turn by the competitor's price.
In the absence of competition, it will be possible to place the product on sale at the upper limit. In the presence of competition it will be possible to go below it by a predetermined value (for example by a cent).
The maximization algorithm finds its greatest utility in very competitive environments, such as on the Google Shopping price comparison site or on the Amazon marketplace.
Amazon Repricing
To allow the bindCommerce repricing engine to act on Amazon, the "Competition price monitoring" connector is made available, which thanks to the efficiency of the AWS SQS queue management, allows you to receive the price changes of Amazon competitors within a few seconds of when the situation changes.
By applying the profit maximization algorithm, bindCommerce therefore allows you to perform an efficient repricing activity on Amazon.
Amazon business Repricing
bindCommerce is also able to capture the prices of business-related Amazon competitors.
In this case the repricing algorithm calculates a second competitive price, relating only to Amazon Business customers, who will have the possibility of viewing a price separated from VAT.
