AI-based Price Optimization

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.