Every pricing term that matters in e-commerce, defined in plain English. From MAP and Buy Box to dynamic repricing and price elasticity.
Average Order Value (AOV) is the mean amount a customer spends in a single order, calculated by dividing total revenue by the number of orders over a given period.
Read full definition →Anchor pricing is a pricing tactic that displays a higher reference price (the anchor) next to the actual selling price, so the discount feels larger by comparison.
Read full definition →Penetration pricing is a strategy of launching a product at a deliberately low price to win market share quickly, then raising the price once a customer base is established.
Read full definition →Price elasticity is a measure of how much demand for a product changes when its price changes. High elasticity means small price moves cause big shifts in sales; low elasticity means demand barely moves with price.
Read full definition →Price position is a quick categorical indicator of where a merchant's price sits relative to tracked competitors at a given moment: lowest, equal, or highest in the market.
Read full definition →Price skimming is a strategy of launching a product at a high price to capture maximum revenue from early adopters, then lowering it over time as the market saturates.
Read full definition →PriceGuard is Price Parrot's selling-loss protection feature: percentage-based thresholds that freeze the price or exit to a backup rule when competitor prices shift outside boundaries that would damage margin.
Read full definition →RRP (Recommended Retail Price) and MSRP (Manufacturer's Suggested Retail Price) are the prices a manufacturer suggests retailers sell a product for. They are guidance, not enforcement.
Read full definition →A reference price is the price a customer mentally compares against when evaluating whether a product's actual price is fair, high, or a good deal.
Read full definition →A repricing rule is the configured logic that tells an automated repricing system how to set a product's price in response to competitor prices, costs, stock, or time signals.
Read full definition →Repricing is the practice of changing product prices in response to market signals, usually competitor prices, with the goal of staying competitive while protecting margin.
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