Price as a Product: Dynamic Pricing With ML That Increases Revenue

This article explores ML-driven dynamic pricing for e-com/e-grocery, tackling the complexity of thousands of SKUs, promotions, and cashback. It proposes a three-engine architecture (Base Price, Promotion, Cashback) managed via an admin UI. The system automates pricing using inputs like demand, inventory, competitor data, and seasonality. Key metrics: Margin & GMV (primary), AOV & conversion (proxy), LTV & coverage (health). Dynamic pricing transforms price into a flexible, A/B-testable product that boosts revenue and scalability while reducing manual errors.