Make Profitable Pricing with AI-driven Price Optimization
Make sure your Ecommerce product pricing is always making the best margin it can. Sniffie’s AI-based price optimization algorithm knows exactly what your customers are willing to pay for. Reference ROI up to 1032% with 6 figure margin improvement.
AI-based Price Optimization for E-commerce
Our price optimization is based on AI and machine learning. The system studies prices over time and understands the demand for each individual product. Finally settling for the most profitable price point.
Here’s what AI-based price optimization looks like
2 benefits with AI-based price optimization
Maximize profit margins
Automate price changes based on customer behavior and changes in the market. The best part is, that Sniffie is no black box. You are still in control. Set safeguards to stay within preferred limits, or choose to approve all changes manually.
Understand the effects of your pricing strategy
For extremely competitively relevant and price-sensitive products, you can add pricing knowledege by using only price recommendations (instead of automatic repricing) to tune your pricing strategy.
This is how Sniffie's AI-based price optimization tool works
Optimize for higher profit margins or revenue
You can choose to optimize your prices for either increased revenue, or in most cases, increased profit margins.
Especially in the latter option, the optimal price point is surprisingly often much higher than the original price – which means you’re essentially leaving easy money on the table.
Continue automated testing to stay ahead of competition
After the best possible price point for a product has been found, the algorithm will continue testing if it changes over time by making incremental price changes.
In addition to finding the best possible price points, this process generates valuable market data on your sales volumes and demand in relation to price points. This data can then be used to make future pricing decisions.
Review and manage all your pricing-related data in one simple view
Pricing management is typically done in silos (think spreadsheets or multiple separate systems) – and a lot of the data you would actually need is not even available.
Not anymore! With Sniffie, you can finding the most profitable price point, keep track of changes in demand, avoid market cannibalization, optimize your stock levels, and even monitor your competitors in one simple matrix view.
PLUG TO YOUR ECOSYSTEM
Integrate to any platform
Just plug your e-commerce platform, ERP or PIM into Sniffie. Sniffie operates as your pricing master and starts pulling data from your systems and learning from both past and new transactions — and you’re ready to start optimizing your prices.
This is what users say they love about Sniffie
MOST LOVED POINTS
We know – AI is a buzzword, but just hear us out. Our price optimization tool is based on reinforcement learning rather than neural networks, which means you don’t need huge amounts of historical data to get you started. Granted, the more historical data you have, the faster you can ramp up, but you definitely don’t need tons of data to get the ball rolling.
If you need to handle pricing strategies for hundreds or thousands (or even tens of thousands) of products or product categories, manual pricing rules manually is typically not the most profitable option. Human brain is simply not able to recognize patterns in large data sets efficiently enough. Enter a reinforcement learning based pricing algorithm that works systematically 24/7.
Simple. You connect your Shop to Sniffie and then select products you want to optimise. Sniffie will show you first price suggestions and ask for your approval before starting the optimisation. Then it’s fully automatic process.
No matter your sales volumes, our tool’s pricing recommendations are always just as reliable. With lower sales volumes it just takes a bit longer for our tool to find the optimal price point.
No need to spend days (or weeks!) of work time each month monitoring competitor prices or adjusting your pricing strategies manually. Just plug in our tool and it will make sure you won’t ever again leave easy money on the table by not pricing your products proactively.
Don’t worry – our tool is no black box, actually quite the opposite: you have full visibility and control over anything and everything that happens at all times. You can always opt to confirm price recommendations before going live. Optionally, you can also set safeguards to keep changes within preferred limits.
Our reinforcement learning based pricing tool can increase profit margins equally well (according to our data, up to 10% on average, compared to manually set pricing rules) for high-end e-commerce brands, cut-price retailers with high sales volumes, and anything and everything in between.
While our tool can easily handle pricing for tens of thousands of products, we typically recommend businesses to start small and expand product use to long-tail products only after that. This ensures that you learn to make use of all the new data that you have at hand.
When it comes to marketing activities like digital advertising campaigns or newsletters, we can separate specific products from others and treat them differently from those with no ongoing promotion. But just like with digital marketing, things like website traffic are often poor attributes because you can never filter out all bot traffic and unengaged/irrelevant visitors. In fact, since the algorithm assesses a price point depending on if it’s sold or not, taking increased or decreased traffic numbers into account with no further information would often be misleading (e.g. if your marketing campaign attracted a lot of people with no real buying intent).
We offer easy-to-implement integrations with Shopify and Magento (Woocommerce and other e-commerce platforms coming). If we don’t have an integration with your e-commerce platform, ERP or other systems yet, we’re typically able to offer tailor-made integrations that are easy to implement and don’t require too much of your developers’ time.
We’re so confident if works that we even have a money back guarantee! With our AI-based price optimization tool, e-commerce and retail businesses can increase profit margins by 5% during the first 90 days of use only (T&Cs apply), and on average 10% more compared to traditional methods of calculating price elasticity.