International Business Machines Corporation, or IBM, has introduced IBM Dynamic Pricing, a cloud-based offering to help retailers navigate online price wars. IBM Dynamic Pricing combines performance data, such as cart abandonment rates and browsing history, with sales, inventory and the latest competitive pricing information and in real time applies these insights to recommend the most appropriate pricing action. With IBM Dynamic Pricing, retailers can intelligently determine which changes they should respond to (and how) and which should be ignored, all based on potential impact on the business.

When taking action is appropriate, the solution automatically makes real-time pricing recommendations. IBM Dynamic Pricing evaluates and decides based on product availability, price sensitivity and customer demand that an 8% pricing change will still enable the retailer to compete and to achieve sales and margin objectives.