AI Price Optimization for Online Furniture Retailers

Ed Shapoff, Analytics2Go VP of Business Development
February 2021

“Alexa,” asks the concerned online furniture category manager, “is AI coming for my job?

Alexa answers, “Relax, my research tells me that both machines and humans are needed to arrive at the best pricing decisions. AI crunches massive amounts of data in seconds to recommend the best prices while humans set business parameters and more to maintain margins. Check out Analytics2Go, they get it. I’ve just texted you a link to read more.”A2Go helped the largest online furniture company in Brazil—with 250,000 SKUs—increase its revenues and margins by 8%.
Most recently, A2Go helped Mobly, the largest online furniture company in Brazil (250,000 SKUs), to increase revenues and margins by 8%. We are seeing more and more online furniture retailers turn to AI to optimize pricing and augment the good work you already do. This is a huge advantage for both growth and competitiveness.

Price-Right AI collaborates with humans to help them make better, faster decisions.

We understand that pricing is among the most powerful, effective levers to improve revenue. We also know that AI-driven prices should be easily understood or you won’t trust that you are getting the best outcome. You want to know: Why that price? Transparency in AI is in; black box operations are out. To this end, Price-Right AI makes AI-driven pricing clear and understandable to category managers using “explainable AI”. It is built to uncover “pricing logic”, or rules, hidden in your data and uses those rules to recommend new product prices. The machine generated rules can be viewed and evaluated instantly by pricing teams. As seen in the case of Mobly, the ability to view the pricing logic and follow revenue and margins, instilled confidence and trust among the category managers that Price-Right AI would deliver better outcomes when compared to their traditional processes. You will appreciate the advantage of machine-generated rules early on, and it only gets better over time.

Another way that AI and category managers collaborate using Price-Right AI is when category managers can enter their specific business parameters to act as the guardrails for all pricing decisions. They are easily incorporated into the Price-Right AI calculations for hundreds of thousands of SKUs. In addition, Price-Right AI provides the opportunity for category managers to override individual price recommendations when they have information that the solution does not consider.

AI as a Partner – AI-driven pricing with Price-Right AI evolves with your business. You can implement human-designed rules as part of the complete set of decision parameters. Having the flexibility to experiment with new pricing strategies or to hard-code pricing rules that may be required by your brand strategy is a huge benefit providing flexibility to pivot quickly when necessary. In addition, Price-Right AI continuously learns your business from a daily ingestion of data ensuring you keep up with the booming and ever-changing world of ecommerce.

“Concerned category manager,” says Alexa, “A2Go’s Price-Right AI is here to help.”

Analytics2Go (A2Go) builds powerful AI-driven pricing solutions for online retail that help humans to make better, faster decisions every day.

Related Posts

About Us
We set our goal to make it possible for businesses to use data to optimize recurring, mission-critical decisions in real time and at the point of use – by sales teams, pricing teams and supply chain management teams.

Let’s Socialize

Popular Post