Years ago, we got used to airline tickets fluctuating in price and then Amazon began dominating online retail and put their own version of dynamic pricing to work.
Since then, dynamic pricing has become increasingly commonplace in online retail.
With its growing popularity, any retailer that didn’t have some form of dynamic pricing implemented might risk missing out on increased margins when competitors run out of inventory. On the other end of the spectrum, a retailer could be missing out on sales opportunities if a competitor drops their prices, leaving that retailer with a relative price that is way too high to be competitive.
Dynamic pricing is still relevant because online retail is as competitive as ever, which means it’s harder to capture pricing opportunities (to maximize margin or revenue, depending on your strategy) in real-time.