Recently, in November '23, E-commerce and online stores are caught misleading consumers with unethical discount strategies to increase purchase. The Netherlands Authority for Consumers & Markets, otherwise known as ACM, witnessed that a large number of brands,
“temporarily increase the price of a product and then put it on the display at an apparently high discount.”
Edwin van Houten, the Director of ACM’s Consumer Department, states:
“Consumers are sensitive to the prices of products, especially when discounts are involved. However, a discount must be a genuine discount, and not just a gimmick to lure consumers.
Such offers repeatedly misuse the consumer’s temptations to purchase on unethical grounds.
Navigating the Challenges and Goals of E-Commerce Pricing
In e-commerce, maintaining ethical pricing practices remains a significant challenge across brands and regions. Such persistent discount strategies not only undermines consumer trust but also poses a dilemma for retailers striving to balance profitability with ethical practices.
E-commerce brands need to understand that their goal is ultimately to increase the profit margins in the long run. For this to happen, they need not resort to such mal practices that keep the consumer trust on stake. This hurts the long-term aspect of profitability as it tarnishes the brand image.
Implementing Advanced and Automated Pricing to Ethically Optimise Profit Margins
Using integrated pricing platforms that optimise product prices accurately and frequently in a day across all platforms regardless of the product portfolio size is 10 times more rewarding than putting your brand name at stake before your customers.
But you may ask why Should you Invest in a Pricing Software? Artificial Intelligence-powered pricing platforms analyse real-time market situations, demand while also analysing macro and other micro factors, to calculate and recommend optimise prices for each product/product categories. In case of competitive pricing, it suggests prices that don't comprimise your margin goals.
SYMSON: Pioneering Ethical Pricing through Advanced AI
In response to these challenges, SYMSON offers a revolutionary approach to pricing strategies. This AI-driven price management platform stands as a beacon of ethical pricing, ensuring that businesses can optimise their profit margins without resorting to deceptive practices.
Download Whitepaper: The Ultimate Guide to a Perfect Pricing Strategy
How SYMSON Makes a Difference Ensuring Smart and Ethical Pricing
The purpose of pricing platforms is to free up time and energy off pricing analysts and managers so they can focus on other strategic actions.
Its advanced algorithm continuously studies the current market, economic situation, time of the day, competition and other relevant paramters that may affect purchase. Then, it suggests new prices without compromising on your product margin goals. Let’s have a look at how else SYMSON manages your pricing ecosystem:
- Dynamic Pricing Models
AI platforms analyse real-time market data, customer behaviour, and competitive landscapes. This Genius Dynamic Pricing solution’s comprehensive analysis allows for dynamic pricing strategies that respond to market changes while maintaining transparency and fairness.
- Predictive Analytics for Future Trends
AI algorithms can predict future market trends, enabling businesses to proactively adjust their pricing strategies. This foresight ensures long-term profitability by staying ahead of market curves. To know more, you can see how our SYMSON’s algorithm works.
- Customised Pricing Solutions
Every market segment has unique characteristics. AI-powered platforms offer customized pricing strategies tailored to specific customer segments, enhancing customer satisfaction and loyalty. By adopting SYMSON’s transparent pricing approach, businesses can bolster their reputation and build lasting relationships with their customers.
- Data-Driven Insights
SYMSON's platform harnesses the power of artificial intelligence to analyse vast amounts of market and consumer data. This enables businesses to set prices that are not only competitive but also transparent and fair.
- Automate Repricing across Multiple Platforms
The challenge online businesses used to face was not only to analyse manually with each passing market trend. But to update adjusted prices across all other online platforms depending on their sensitivity. With SYMSON, you can manage this in a whiff.
- Compliance with Regulations
With SYMSON, businesses stay ahead of regulatory compliance, avoiding the pitfalls of price deception and ensuring adherence to ethical standards.
Download Whitepaper: A Comprehensive Guide on the Top 10 Smart Pricing Platform
Frequent price adjustments like Amazon enables businesses to increase profitability and revenue dramatically. As mentioned, the basis for such adjustments is the continuous market analysis and shifts. Using such pricing tools helps you proactively leverage the market opportunity instead of giving in to the temptation of using misleading pricing and discounting strategies.
Do you want a free demo to try how SYMSON can help your business with margin improvement or pricing management? Do you want to learn more? Schedule a call with a consultant and book a 20 minute brainstorm session!
