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In this guest blog, Chad Rubin of our new partner Profasee discuss how AI-driven dynamic pricing software takes the guesswork out of your pricing strategy – the heart of your business – and you’ll discover the key thing most sellers are overlooking.
Traditionally, in markets with many diverse and somewhat low-tech sellers, inefficiency is baked into the system. Consumers make impulsive decisions, and sellers often misprice their products — leaving room for savvy buyers to spot underpriced items and for sellers to lose potential revenue.
For example, an uninformed shopper might list a rare collectible on Amazon for a fraction of its true value, unaware of how much they could actually charge. The buyer finds it, thinks, “Is this vintage item really only $10?” and happily snaps up the deal.
These inefficiencies are part of what makes marketplace economics interesting. And on Amazon, they still happen, but not nearly as often. Why? Because knowing what market rates are is:
- crucial for brands trying to optimise profits
- not a skill every brand has
- pretty easy to automate
That’s where Profasee comes in.
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ToggleHow Profasee transforms e-commerce pricing strategy
Profasee is an AI-driven dynamic pricing software platform, built specifically for Amazon sellers. It ingests Seller Central and market data to determine the optimal price for each product, and then adjusts that price in real time to:
- maximise profitability
- beat competitors
- respond to demand
It’s like a hedge fund algorithm for pricing – applying the same quantitative principles to an online marketplace.
Today, dynamic pricing isn’t just limited to financial markets. The Amazon marketplace is not perfectly efficient, and consumers don’t process price changes rationally. Profasee exploits this market inefficiency, enabling brands to leverage pricing as a strategic growth driver.
Until now, many Amazon sellers have taken a hands-off approach to pricing, running deals, or relying on coupons without fully understanding their impact. By applying AI-driven dynamic pricing to Amazon, Profasee empowers sellers to use pricing as a calculated tool rather than a guessing game.
Pricing: The 2-4x growth lever most brands overlook
Brands often invest heavily in operations and customer acquisition while overlooking pricing as a powerful growth lever. The reality is, pricing has a 2-4x impact over acquisition strategies when it comes to driving profit.
But many sellers view pricing as risky, thinking that:
- changing prices could hurt their sales
- it’s too complicated to manage correctly, or
- maybe it just doesn’t matter
Profasee exists to prove those assumptions wrong.
Why dynamic pricing is a game-changer for Amazon sellers
Most of our customers weren’t optimising their prices before Profasee. They were discounting, running coupons, and simply hoping for the best. But we believe dynamic pricing is where brands can truly capitalise. With intelligent price adjustments, brands can achieve significant profit increases without heavy marketing spend.
And it’s not just about making pricing decisions easier—it’s about monetising smarter. Every Amazon brand is different, but one mistake we see repeatedly is a lack of focus on pricing strategy. Most brands don’t realise that pricing is at the heart of their entire business, the lever that influences inventory movement, sales velocity, and ultimately profit margins. Profasee’s data-driven dynamic pricing removes the guesswork, helping brands set optimal prices every hour of the day.
You’re no longer at the mercy of market fluctuations
With these advancements, sellers can respond to changes in demand, competitors’ prices, and consumer behaviours in real time. By automating this process, brands are not only able to stay competitive but also capture more value. Just as quant hedge funds use sophisticated algorithms to exploit inefficiencies in financial markets, Amazon sellers can now use dynamic pricing to gain an edge over less savvy competitors.
So why aren’t more brands leveraging pricing strategy as a growth lever?
The answer lies in a mix of misinformation, fear of complexity, and the myth that pricing changes are too risky or ineffective. But Profasee are dispelling those myths, proving that dynamic pricing is a critical component for success on Amazon.
