Pricing Glossary for Ecommerce

What is Pricing?

Pricing is the process by which a company determines the selling price of its products or services.

An effective pricing strategy is not simply about selling cheaper than competitors, but about finding the right balance between profitability, competitiveness, and growth.

In ecommerce, a strong pricing strategy helps protect margins, improve conversion rates, and adapt more effectively to market changes.

Learn more: What is Pricing and How Does It Work?

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What is Dynamic Pricing?

Dynamic pricing is a strategy that allows prices to be adjusted automatically based on different market and business variables.

These variables may include competitor prices, demand, inventory levels, seasonality, margins, and business objectives.

The goal of dynamic pricing is not to continuously lower prices, but to find the most appropriate price for each product and situation.

Learn more: Software de Dynamic Pricing

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What is Price Intelligence?

Price intelligence is the process of collecting, analyzing, and interpreting market data to make better pricing decisions.

It helps companies understand how their products are positioned against competitors, identify margin opportunities, and detect commercial risks.

For ecommerce businesses, retailers, and manufacturers, price intelligence is essential to compete using data rather than intuition.

Learn more: Price Intelligence Platform

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What is Repricing?

Repricing is the process of updating prices regularly to adapt to market changes.

Although it is often associated with matching or lowering prices against competitors, an advanced repricing strategy also considers margins, inventory, demand, positioning, and profitability goals.

A well-designed repricing system helps maintain competitiveness without sacrificing margins.

Learn more: What is Repricing and How Does It Work?

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What is Price Elasticity?

Price elasticity measures how demand changes when the price of a product changes.

If a product is highly elastic, a small price increase may significantly reduce sales. If it is inelastic, prices can rise without greatly affecting demand.

Understanding price elasticity helps businesses determine when to increase, decrease, or maintain prices.

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What is Competitor Monitoring?

Competitor monitoring consists of continuously tracking competitors' prices, promotions, and market movements.

In ecommerce, this information helps companies understand whether their products are positioned above, below, or in line with the market.

Automated competitor monitoring reduces manual work and enables faster reactions to important market changes.

Learn more: Competitor Price Tracking Software

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What is Smart Pricing?

Smart Pricing combines data, automation, and artificial intelligence to recommend or adjust prices more efficiently.

Unlike strategies based solely on simple rules, Smart Pricing can take multiple factors into account at the same time, including competition, margins, demand, inventory, seasonality, and business objectives.

Its goal is to improve profitability without sacrificing competitiveness.

Learn more: Learn how to implement a Smart Pricing strategy

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What is a Price War?

A price war occurs when multiple companies continuously lower their prices in an attempt to gain sales or market share.

Although it can generate short-term sales, it often leads to lower margins, reduced profitability, and a decline in perceived value.

Avoiding price wars requires data, strategy, and clear pricing rules.

Learn more: Learn how to avoid a price war

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What is Margin Optimization?

Margin optimization consists of improving profitability by adjusting prices, costs, promotions, and commercial strategies.

In pricing, this means identifying products where prices can be increased, protecting minimum margins, and avoiding unnecessary discounts.

An effective margin optimization strategy aims to increase profits without significantly harming sales.

Learn more: Increase margins without losing sales

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What is Price Matching?

Price matching is the practice of matching a competitor's price in order to maintain a competitive position.

Although it can be useful in certain situations, applying it automatically to every product may unnecessarily reduce margins.

An advanced pricing strategy should determine when to match prices, when to differentiate, and when to protect profitability.

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What is Revenue Management?

Revenue Management is a discipline focused on maximizing revenue through pricing strategies, demand forecasting, and inventory management.

Although it originated in industries such as airlines and hospitality, its principles are now widely applied in ecommerce and retail.

In pricing, Revenue Management helps companies define smarter prices based on demand, market behavior, and business objectives.

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What is a Pricing Dashboard?

A pricing dashboard is a visual tool that centralizes information about prices, competitors, margins, and market positioning.

It enables businesses to quickly identify products that require attention, monitor competitor price changes, and uncover opportunities for improvement.

Pricing dashboards transform complex data into clear and actionable insights.

Learn more: Dashboards and Data Storage

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What is Google Shopping Optimization?

Google Shopping optimization focuses on improving the quality of product feeds to increase the visibility, relevance, and competitiveness of listings and ads.

A well-optimized feed helps products rank better and enables more accurate comparisons with competitors.

In pricing, Google Shopping provides valuable insights into market positioning and competitiveness.

Learn more: Google Shopping Feed Optimization

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What is Product Matching?

Product matching is the process of identifying equivalent products across different retailers or competitors.

It is essential for comparing prices accurately, especially when product names, descriptions, or packaging formats do not exactly match.

Effective product matching improves the quality of price intelligence and prevents decisions based on incorrect comparisons.

Learn more: Discover the Fundamentals of Product Matching

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What is an EAN?

An EAN (European Article Number) is a unique identifier used to identify commercial products.

In ecommerce, EANs help compare products across different retailers, improve the quality of product matching, and reduce errors in competitor monitoring.

For price intelligence strategies, reliable identifiers such as EANs are essential to obtain accurate and comparable data.

Learn more: Why Are EAN Codes Important for Your Ecommerce Products?

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What is Pricing Automation?

‍‍Pricing automation enables companies to update prices automatically based on business rules, market data, or AI-driven recommendations.

It helps reduce manual work, prevent errors, and react more quickly to competitor price changes.

A well-designed pricing automation strategy should respect minimum margins, commercial objectives, and profitability goals.

Learn more: Automate Your Prices

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What is Price Positioning?

Price positioning refers to whether a product is priced above, below, or in line with the market.

Understanding price positioning helps businesses decide whether to increase prices, reduce them, maintain them, or differentiate themselves through other factors.

In ecommerce, price positioning is essential for competing profitably.

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What is AI Pricing?

AI Pricing uses artificial intelligence models to analyze data, identify patterns, and recommend optimal prices.

These models can take into account factors such as competition, demand, inventory levels, margins, elasticity, and seasonality.

The goal of AI pricing is to help businesses make more accurate and scalable pricing decisions than traditional manual approaches.

Learn more: How to Calculate Selling Prices Using Artificial Intelligence

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