Fixed pricing increasingly seems to be a thing of the past.
Companies are leveraging new algorithmic technology to price their goods and services in real time. If the weather drops significantly overnight, an online store might see a surge in demand for batteries and warm clothing, and increase prices accordingly.
Dynamic pricing has spread far beyond airline flights. Uber brought dynamic pricing to the car sharing space. An Israeli startup called Feedvisor is bringing its “algo-pricing” technology to online retailers.
The bet appears to be paying off. The company raised $1.7 million in funding this week to build out the product. The round was led by JAL Ventures, the round included participation from early stage investors Oryzn Capital and Micro Angel Fund.
Since launching last year with a software as a service product, targeted at online retailers on Amazon’s Marketplace, the company has experienced 800 percent year-over-year revenue growth. It recently updated its product to integration with Amazon Subscriptions API, which will improve the pricing accuracy.
“Feedvisor was started with the premise that the e-commerce market can be treated like any dynamic commodities market, with prices constantly changing to react to supply and demand,” said Victor Rosenman, founder and chief executive.
The company will use the funding to expand the team and build out the product. It has raised $2.7 million in funding to date.