It isn’t easy for brick-and-mortar retailers to compete with internet behemoths such as Amazon, Jet, and eBay. Online shoppers spent a record $108.2 billion last holiday season, according to Adobe Analytics, and that number is only expected to grow. By 2021, Statista projects that more than 230 million customers will browse products, compare prices, or buy merchandise online at least once.
So how’s a big box store to compete? Jamie Rapperport, cofounder and CEO of Eversight, thinks the solution might be artificial intelligence-powered dynamic pricing. “We want to bring pricing experimentation and promos right to the shelf,” Rapperport told VentureBeat in a phone interview.
Enter Eversight Pricing Suite, a new cloud software solution that’s meant to complement Eversight’s core platform, Eversight Cloud, which allows brands and retailers to test, adapt, target, and validate in-store promotions before they’re rolled out at retail.
Here’s how it works: When a retailer chain gives Eversight Pricing Suite the green light, the platform automatically begins running experiments on a subset of items throughout a handful of stores, taking into account factors like competitors’ pricing and shoppers’ historical behavior.
The tests are randomized to ensure they aren’t impacted by external factors, and they’re run across a number of product categories. “It’s tremendously complicated,” Rapperport said. “[The AI] figures out the inner relationships of different items and looks at the impact of prices in a highly structured way.”
After at least a week has passed, the system…