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Boost Operational Efficiency on Amazon with AI Dynamic Pricing with Chad Rubin · Selling on Giants: The eCommerce Marketplace Podcast

0:05
SPEAKER_00: Hey everyone, welcome back to Selling on Giants.
0:07
SPEAKER_00: Today I'm excited to share the key takeaways from our insightful discussion with Chad Rubin about dynamic pricing for Amazon sellers.
0:16
SPEAKER_00: This episode is titled Boost Operational Efficiency on Amazon with AI dynamic pricing.
0:23
SPEAKER_00: Chad leads prophecy operations and oversees the strategy.
0:27
SPEAKER_00: He frequently speaks about e-commerce, Amazon, and leveraging AI strategies at webinars and conferences worldwide.
0:32
SPEAKER_00: He's also an author of an Amazon bestseller, cheaper, easier, direct, prior to prophecy, founded Think Crucial, and co-founded Skubana and The Prosper Show.
0:42
SPEAKER_00: On a personal note, Chad is a father, husband, and enthusiast for coffee and tacos.
0:48
SPEAKER_00: Dynamic pricing is for everyone.
0:50
SPEAKER_00: Chad emphasized that dynamic pricing is accessible to all sellers, regardless of size.
0:56
SPEAKER_00: It can significantly improve operational efficiency.
1:00
SPEAKER_00: Efficiency gains.
1:01
SPEAKER_00: With a well-implemented dynamic pricing strategy, sellers can expect a 10 to 15% improvement in efficiency, leading to more streamlined operations and better overall performance.
1:13
SPEAKER_00: Optimal pricing factors.
1:15
SPEAKER_00: Dynamic pricing considers various inputs like seasonality, competition, inventory levels, and conversion rates to determine optimal price for your products.
1:25
SPEAKER_00: Small adjustments, big impact.
1:27
SPEAKER_00: One of the most fascinating points Chad made was about the power of small changes, even minor price adjustments, sometimes just a few percent points, can lead to significant improvements in efficiency and profitability.
1:41
SPEAKER_00: It's all about those small levers opening big doors.
1:44
SPEAKER_00: Profit on ad spend, POAS.
1:47
SPEAKER_00: Chad also highlighted the importance of monitoring your profit on ad spend, POAS.
1:52
SPEAKER_00: This metric helps sellers understand the profitability of their ad spend relative to their sales, ensuring that advertising efforts contribute positively to the bottom line.
2:02
SPEAKER_00: All right, Chad, thanks for being with us.
2:04
SPEAKER_00: We're excited to have you on selling on Giants.
2:07
SPEAKER_00: Before we get started, I'd like to give the audience some background.
2:11
SPEAKER_00: Can you tell me?
2:12
SPEAKER_00: So you've been in the e-commerce space since 2008.
2:15
SPEAKER_00: Can you tell us what initially drew you into the space and how your journey began?
2:20
SPEAKER_02: Yeah.
2:21
SPEAKER_02: Yeah, thanks for having me on.
2:22
SPEAKER_02: I think I've been actually in the space even earlier than 2008.
2:26
SPEAKER_02: I think that might have been like the official time.
2:28
SPEAKER_02: Uh but yeah, so what drove me into the space was I was fired from my job.
2:32
SPEAKER_02: Actually, I was on Wall Street.
2:33
SPEAKER_02: I was covering internet stocks.
2:34
SPEAKER_02: So I was advising hedge funds, institutional investors to buy, sell, or short Amazon.
2:39
SPEAKER_02: Amazon had created this marketplace and FBA was gaining traction.
2:44
SPEAKER_02: And I was like, wait, I can help my parents sell vacuum parts on Amazon.
2:49
SPEAKER_02: So we started actually just reselling parts on Amazon.
2:53
SPEAKER_02: And then I started uh D2C, a direct to consumer branded uh product business where we would just make our own filters, make our own hoses, anything that's replaceable for the home we uh would sell on Amazon.
3:04
SPEAKER_02: It was it was beautiful.
3:05
SPEAKER_02: It was the early days, it was like the before even the gold rush.
3:08
SPEAKER_00: That's amazing.
3:09
SPEAKER_00: How long did you do that for?
3:12
SPEAKER_02: I still do it today.
3:13
SPEAKER_02: So I still have that business live today.
3:15
SPEAKER_02: That business really incubates all these other ideas that I come up with in the e-commerce ecosystem from you know my previous software company and also the Prosper Show to now Prophecy that I'm running today for pricing.
3:28
SPEAKER_00: That's beautiful.
3:30
SPEAKER_00: So on that note, too, you've built and sold multiple successful companies, including Scubana, the Prosper Show, seller's choice.
3:37
SPEAKER_00: What are some things that you needed to have in place that really helped you uh be able to kind of grow these brands to a point where you're able to sell them?
3:46
SPEAKER_02: Yeah, I think I mean I think it comes down to process, comes down to people, comes down to uh the product.
3:56
SPEAKER_02: So people, product, and process really, that ultimately gives you profit.
4:02
SPEAKER_02: So from the people perspective, it's making sure you have the right butts in the right seats.
4:06
SPEAKER_02: I mean, I mean, I can go on and on and on of all these things I've optimized for over my career, but I know with my newest business with prophecy, what I did was in my previous study, we didn't have core values.
4:16
SPEAKER_00: Okay.
4:17
SPEAKER_02: There was no definition of because I I believe that a company mirrors an individual, right?
4:23
SPEAKER_02: And so if that's the case, then if we're hiring and firing against core values internally, those should be outlined.
4:30
SPEAKER_02: So, like that's something I outlined right away when I started Prophecy, so that it can trickle down to every decision that we make internally.
4:36
SPEAKER_02: And when I veer away from those core values and I try to take a shortcut, uh, I pay the price.
4:42
SPEAKER_00: That makes sense.
4:43
SPEAKER_00: Do you use a lot of EOS with uh the businesses that you build?
4:47
SPEAKER_00: It sounds like with the core values and stuff.
4:49
SPEAKER_00: Is this something you lightly follow?
4:52
SPEAKER_02: Uh no, no.
4:53
SPEAKER_02: So we do L10, uh, we have L10 meetings.
4:55
SPEAKER_02: We use EOS and traction.
4:58
SPEAKER_02: Uh, I think it's probably the most efficient way to get everyone in a room and get them synced up.
5:02
SPEAKER_02: So it's a very efficient way that I run meetings.
5:04
SPEAKER_02: So I think that's that's definitely part of it.
5:07
SPEAKER_02: Right now, like for example, I still have my e-commerce business and I still have I have prophecy at the same time and running two businesses in parallel, EOS has been a game life changer, really, for me to get up to speed quickly and help to solve problems and those those problems out in the open.
5:23
SPEAKER_00: Beautiful.
5:24
SPEAKER_00: That's pretty interesting.
5:25
SPEAKER_00: What does your day-to-day look like as uh somebody who's managing foreseeing two companies and technically the the SaaS space and then in the physical product space?
5:37
SPEAKER_02: Uh I mean, like every day is a different thing, right?
5:41
SPEAKER_02: So I right now I have a really good team in place for the e-commerce business, and I've worked hard to turn that business around.
5:46
SPEAKER_02: That business has been attacked on the PL uh from rising costs with inflation to PPC inflation to the fact that like our product is our products category has become commoditized and everyone and their mother has ripped off our product.
6:04
SPEAKER_02: So, but luckily I have good people in place, but I put a lot of better processes in place to turn that business around and now it's running at roughly about 12%, maybe a little bit more now, since we closed our 3PL, maybe around 15% uh profit margins on the bottom line.
6:19
SPEAKER_02: Um, so that business, I only meet with them once a week during an L10 meeting, and then Prophecy is my full full-time day-to-day startup, right?
6:28
SPEAKER_02: And everything's on fire.
6:29
SPEAKER_02: I seat out the I take out the garbage, I do the dishes, I do the laundry, I do everything.
6:37
SPEAKER_00: What do you love so much about the startup?
6:39
SPEAKER_00: So you're back in it.
6:40
SPEAKER_00: This is is this the the fifth or sixth business that you're officially starting and running?
6:46
SPEAKER_02: This is I I've sold three companies, so this is my fourth, but my fifth business, yeah.
6:52
SPEAKER_02: Uh well, there's a few things, right?
6:56
SPEAKER_02: The question is when I sold Stubana in April of 21, Stubana was an operations platform.
7:02
SPEAKER_02: It was an ERP system, if you will, for a lot of D2C brands.
7:06
SPEAKER_02: So we helped people juggle inventory on Amazon and Shopify and Wayfair and Walmart, etc., Sephora.
7:13
SPEAKER_02: Uh and so when I sold that company, I took a step back and I was like, okay, what else can I solve for?
7:21
SPEAKER_02: I kind of started to like find more purpose and figure out what I can solve for.
7:28
SPEAKER_02: And one of the things I wanted to solve for is like can I can I come back and can I do it better?
7:32
SPEAKER_02: Like the novelty essentially wore off over time.
7:35
SPEAKER_01: Okay.
7:35
SPEAKER_02: And that could be, by the way, because I wasn't hugged as a child, right?
7:38
SPEAKER_02: I didn't receive enough love as a child, who knows?
7:41
SPEAKER_02: Uh, but like if I did it and I sold it at this at X price, can I now what's next?
7:47
SPEAKER_02: Can I do the next thing bigger?
7:48
SPEAKER_02: Can it be bigger?
7:49
SPEAKER_02: Can it be better?
7:51
SPEAKER_02: Uh and so here I am back at it again.
7:56
SPEAKER_02: And uh it's definitely different.
7:58
SPEAKER_02: I thought I was gonna not make the same mistakes, and I'm definitely not making the same mistakes.
8:02
SPEAKER_02: I'm making all new mistakes.
8:05
SPEAKER_02: So I'm learning.
8:07
SPEAKER_02: It's uh it's like an MBA part two, if you will.
8:11
SPEAKER_02: School of hard knocks.
8:13
SPEAKER_02: Totally.
8:14
SPEAKER_02: I mean, I think I you get an MBA over four years, right?
8:17
SPEAKER_02: Or whatever it is, maybe it's three years, but like I think one year in startup world, the the the slope is so much higher because you're solving problems at an accelerated pace and it's a high pressure environment.
8:29
SPEAKER_00: Yeah.
8:30
SPEAKER_00: And the dynamics of those problems.
8:32
SPEAKER_00: I've worked at a lot of startups and it's uh you know, multiple hats and uh a lot of pressures and understatement.
8:39
SPEAKER_00: How big's the team over at Prophecy?
8:41
SPEAKER_00: How many uh is it a large team that managed uh the accounts and the right now it's 11.
8:47
unknown: Okay.
8:49
SPEAKER_02: We're still a startup, uh still growing.
8:51
SPEAKER_02: I mean, Stebana when we sold, it was around 50.
8:55
SPEAKER_02: So come back to a very basic core team with high impact individuals, like high potential, a lot of raw, raw human beings who are at the start of their careers who just want to crush it.
9:08
SPEAKER_02: And that's that's what I look for.
9:10
SPEAKER_00: That's awesome.
9:11
SPEAKER_00: Young and hungry.
9:12
SPEAKER_00: Very cool.
9:13
SPEAKER_00: Well, thanks for the background.
9:14
SPEAKER_00: This was really interesting.
9:15
SPEAKER_00: Kind of getting to know you and also your background and how you look at businesses and what you're doing now.
9:20
SPEAKER_00: Uh, with that being said, I'm gonna jump to the main topic: boost operational efficiency with dynamic pricing.
9:26
SPEAKER_00: Um, and for our audience, can you explain what dynamic pricing is and how it works for Amazon sellers?
9:33
SPEAKER_02: Sure.
9:34
SPEAKER_02: So uh, well, dynamic pricing as we move pricing around, we we not only do we predict the right price, but we push the price on Amazon only for private label sellers to maximize different objectives.
9:46
SPEAKER_02: Kind of like Uber does.
9:48
SPEAKER_02: Like if you've ever ridden ridden Uber and maybe in the morning uh price is higher and there's more demand and there's less cars available than at nighttime, et cetera.
9:56
SPEAKER_02: So we're essentially using machines, using AI and deep learning patterns to predict what's the Apple price point that's gonna make you the most amount of money without hurting your ranking position on Amazon.
10:08
SPEAKER_00: Beautiful.
10:09
SPEAKER_00: What does that like what are scenarios where I would use that?
10:13
SPEAKER_00: Is that applicable to every seller in every category?
10:16
SPEAKER_00: Or are there specific use cases that work really well with dynamic pricing versus those who maybe maybe it's not a good fit for?
10:25
SPEAKER_02: It works, it's it works for anyone who's a private label seller.
10:28
SPEAKER_02: Now, the most important thing is that we we work with sellers who are doing at least two to four units a day.
10:34
SPEAKER_02: So not everyone's doing it at that price, but we need, we obviously need that velocity, we need movement to start.
10:39
SPEAKER_02: So typically we start at someone that's doing about a half a million in revenue all the way up.
10:45
SPEAKER_02: I would say like the reason why dynamic pricing AI is so incredibly important is that you know you can have your traditional, you can have a human brain changing prices, but there's so many different signals to pull in on Amazon.
10:59
SPEAKER_02: You're even pulling in your competition.
11:01
SPEAKER_02: So there's it just never stops working, right?
11:04
SPEAKER_02: So you're pulling in your competition, you're learning from it, you're getting smarter from it.
11:08
SPEAKER_02: And so typically, like a human will guess the right price and it'll adjust it maybe once a week, maybe once a month, or maybe never.
11:15
SPEAKER_02: And so the difference is that we're getting all of this, all these signals from Amazon, right?
11:21
SPEAKER_02: So we're we're pulling your sales history, your competitor pricing, your demand, your conversion rate, your click-through rate.
11:28
SPEAKER_02: We're baking that into a model, and then we're essentially updating your price in real time so you can focus on the rest of your business without having to worry, am I making am I priced optimally?
11:38
SPEAKER_02: Am I the right price?
11:39
SPEAKER_00: Beautiful.
11:40
SPEAKER_00: And so the main benefit, it sounds like is just operational efficiency.
11:45
SPEAKER_00: Is when I can make more money, I'm making more money.
11:47
SPEAKER_00: And when I'm uh when it's more competitive, my prices are able to reduce.
11:53
SPEAKER_00: Are you able to set any type of um limits?
11:56
SPEAKER_00: Like how does uh how does setup look like if we decide we're gonna implement a dynamic uh pricing strategy?
12:04
SPEAKER_02: Yep.
12:04
SPEAKER_02: So there's a few key things you need to implement, right?
12:06
SPEAKER_02: You have your your floor price, your min price, like the price I never want to go below, and then you have your ceiling price, the price I would never want to go above.
12:13
SPEAKER_02: Uh so you set that up, you give us your landed cost, and then every skew gets their own objective.
12:20
SPEAKER_02: So you might have a skew that you want to just harvest as much profit as possible without hurting your ranking position.
12:26
SPEAKER_02: But you might have another skew where like, hey, chat, I just want to move velocity on this.
12:30
SPEAKER_02: I'm running, I have too much inventory.
12:32
SPEAKER_02: I've got excess inventory on it, and we want to liquidate it or we want to move it without couponing too much.
12:37
SPEAKER_02: We want to move it at the at the good at the best price possible, but get it out of our warehouse to free up space.
12:43
SPEAKER_02: So you set up your objective, uh, and then you can set up other customizations.
12:47
SPEAKER_02: I call them power-ups.
12:48
SPEAKER_02: So you can set up, uh, for example, your risk tolerance on a SKU.
12:52
SPEAKER_02: Like, are you risk loving?
12:53
SPEAKER_02: Are you risk neutral?
12:55
SPEAKER_02: Are you risk averse?
12:57
SPEAKER_02: Do you not like risk at all?
12:58
SPEAKER_02: So you set that up in our system, and then we do the rest.
13:01
SPEAKER_02: Now we give you, unlike other software companies where they're kind of like set it and forget it, we give you a dashboard and we actually have a data science team on the call going through the results with you on a monthly basis.
13:15
SPEAKER_00: Beautiful.
13:16
SPEAKER_00: So you get at Prophecy, you offer sounds like pretty uh white glove service.
13:20
SPEAKER_00: So your data team would sit down and they would say, based on these inputs, um, you know, this is what the data is saying, your price range.
13:28
SPEAKER_00: Like what does that look like?
13:31
SPEAKER_02: Yeah, so so by the way, we're super hands-on.
13:34
SPEAKER_02: It is white glove.
13:35
SPEAKER_02: We're a software with a service because you can't just let AI just run a muck, right?
13:39
SPEAKER_02: So essentially we supervise it to make sure it's making the absolute right decisions, and we do that on a daily basis.
13:45
SPEAKER_02: Then we show our clients the results.
13:48
SPEAKER_02: We show them how much money they would have made without prophecy and what they made with prophecy.
13:53
SPEAKER_02: What's to use or do are working, what's to use are not working.
13:56
SPEAKER_02: This is how much money we've delivered in the time frame that we've been working with you on.
14:00
SPEAKER_02: So typically we see about a 10 to 15% lift in profit in a three-month period, which is pretty unreliable.
14:08
SPEAKER_01: That's pretty good.
14:08
SPEAKER_01: Yeah.
14:09
SPEAKER_02: That's what we see on average for 90% of the clients that we work with.
14:12
SPEAKER_02: Some clients, they're near to perfect pricing, and they already have a data science team, or they only have one STEU or two STEWs, and they're already focused on the SKUs, and they're going in every day and updating it eight times a day.
14:24
SPEAKER_02: Uh, but 90% of our customers are seeing a 10 to 15% lift.
14:28
SPEAKER_00: Beautiful.
14:30
SPEAKER_00: So we have the the ability to adjust pricing based on.
14:34
SPEAKER_00: Well, I guess what are can you share all the inputs that you look at when you're looking at determining pricing on like what's the uh what is the correct pricing for the moment?
14:46
SPEAKER_02: Yeah.
14:46
SPEAKER_02: So I mean, look, there is a a gold mine of information to unlock on Amazon, right?
14:51
SPEAKER_02: So you have your own order history.
14:53
SPEAKER_02: So when you connect to Prophecy, you can connect in the Amazon seller API and the ads API.
14:58
SPEAKER_02: So now we're pulling in seasonality, uh events, for example.
15:05
SPEAKER_02: Uh we're pulling your competition.
15:07
SPEAKER_02: So we go and screw and pull in your competitors, we pull in their unit velocity, their price, their revenue, their ranking position into a model.
15:15
SPEAKER_02: Because you can't make decisions on Amazon without actually seeing it's not an isolated environment because you're essentially competing with others in the marketplace for specific keywords.
15:23
SPEAKER_02: We're pulling in your sessions, which is your impressions on a product detail page, your conversion rate.
15:29
SPEAKER_02: Uh yeah.
15:31
SPEAKER_02: I mean, we there's a lot of stuff.
15:33
SPEAKER_02: So it's not even so, and that's the beauty of what we've built is that we're there's no other software on the market that will scan and analyze the billions of data points that we're pulling in and constantly looking at those opportunities and deploying those learnings to market instantaneously.
15:50
SPEAKER_00: Beautiful.
15:52
SPEAKER_00: So, what are some so and so sorry you're gonna get Chad, finish your point?
15:58
SPEAKER_00: Uh I was gonna say so.
16:00
SPEAKER_00: So we have luckily we can edit it, so it's no big deal.
16:06
SPEAKER_00: Go ahead, finish your thought.
16:08
SPEAKER_02: Yeah, well, so I I think the other thing I was gonna say is that it's not even so the beauty about AI is that it's billions of nodes, it's taking signals and creating if-then statements, but creating uh umbrellas and umbrellas and umbrellas of note of if-then statements that are beyond comprehensible to the human mind.
16:28
SPEAKER_02: And then when we go and deploy those learnings to the market, every decision that it makes, right, every price that it decision it makes, it's learning from that decision to see how the market reacts to it.
16:39
SPEAKER_02: So it get actually gets smarter over time.
16:43
SPEAKER_02: And that I think is really where we built a competitive moat and where we're solving an amazing problem is that there's nothing else out there in the market that gets better over time.
16:53
SPEAKER_02: Like people typically set their price and they forget it.
16:56
SPEAKER_02: Yeah, or they don't even change price at all.
16:58
SPEAKER_02: Uh and they do that because maybe there's fear, there's misinformation, but we are constantly learning on the marketplace, we're recognizing how does Amazon react to price changes?
17:09
SPEAKER_02: How do your customers react to price changes?
17:11
SPEAKER_02: And how does your competition react to those price changes?
17:14
SPEAKER_02: So we do all of those things and we're constantly analyzing those things and then reiterating on them and getting smarter and evolving.
17:21
SPEAKER_00: How does Amazon react to pricing?
17:24
SPEAKER_00: Uh, is it whenever there's a price increase, is there immediately uh a dip in ranking, or I guess is there a grace period?
17:33
SPEAKER_00: How to what have you seen in your data?
17:36
SPEAKER_02: So when you make a so it first of all depends on the significance and the and and the the delta, like how big of a price change you're making.
17:44
SPEAKER_02: We're not actually making very, very large price price adjustments.
17:47
SPEAKER_01: Yeah.
17:47
SPEAKER_02: In fact, if you actually look at typically what you see is a a change in price by 1%, yields a 14% lift in operating profit.
17:56
SPEAKER_01: Wow.
17:57
SPEAKER_02: So you don't have to, it's sort of this like small lever that swings big doors approach.
18:02
SPEAKER_02: You don't need big, big swings to make a lot more money.
18:05
SPEAKER_02: The problem is that if you look up a trite example like garlic press, you have growth presses that are$11.99 or$9.99, and you have growth presses that are$27.99, but nobody knows what their pricing power is in the moment and if that is the optimal price at the specific time of day.
18:22
SPEAKER_02: So we're constantly adjusting price to match demand to maximize the objective that you want to accomplish.
18:31
SPEAKER_02: So, yes, does Amazon get mad if you go, if I was at$10 and now I go to$30 overnight?
18:37
SPEAKER_02: Yeah, Amazon will essentially give you a price threshold notification.
18:41
SPEAKER_01: Yeah.
18:42
SPEAKER_02: But it but if you slowly go up over time, Amazon's actually looking at the last, like they look at your sales history of when you sold that price and then what price you sold that product.
18:53
SPEAKER_02: And we're baking that into our model as we're making price changes.
18:58
SPEAKER_00: Makes a lot of sense.
19:00
SPEAKER_00: I love the the analogy, small levers that move big doors.
19:03
SPEAKER_00: And it does that, I was really curious about that because like we do price changes too, and we know that if you do it too much of a swing, uh if your listing could actually get suppressed, like Amazon will take away the buy box and uh it affects sales.
19:18
SPEAKER_00: So it's interesting.
19:18
SPEAKER_00: So in your software, give or take, you're really only moving a few percentiles, is how much the price is actually adjusting.
19:26
SPEAKER_00: Um a couple of things.
19:29
SPEAKER_02: Like you can set up your risk level, right?
19:31
SPEAKER_02: If you're risk neutral, risk-loving, etc.
19:34
SPEAKER_02: We price test and we do it at scale.
19:37
SPEAKER_02: So we're we have price suppression technology built into the platform.
19:41
SPEAKER_02: So we will detect if there's a price suppression and we automatically reset back to the original price.
19:46
SPEAKER_02: But over time, our model has learned hey, like, can I go up a little bit?
19:50
SPEAKER_02: How far can I go up, etc.?
19:52
SPEAKER_02: It knows its boundaries, right?
19:54
SPEAKER_02: But I want to be very like, I want to be abundantly clear with you.
19:58
SPEAKER_02: Your rank will not plummet when you're using conscious and smart price adjustments.
20:04
SPEAKER_02: So you need to be able to use data and use it to your benefit without fear so that you actually could unlock profits in the business.
20:12
SPEAKER_02: And that's what a lot of sellers aren't doing in the private label or direct consumer space right now.
20:17
SPEAKER_00: And that's that like incremental change, which you mentioned earlier, that allows you to kind of optimize towards more profit, essentially.
20:26
SPEAKER_02: Correct.
20:26
SPEAKER_02: Exactly.
20:27
SPEAKER_02: And sometimes it's not actually the optimal decision to increase price.
20:29
SPEAKER_02: I know a lot a lot of people in the space are like, oh, just just increase your price, you'll make more money.
20:34
SPEAKER_02: But actually, there's a the reason why pricing on Amazon is so hard is that there's a second order of consequence that happens.
20:43
SPEAKER_02: Your price today affects your order volume tomorrow.
20:46
SPEAKER_02: It affects your discoverability, it affects your ranking position.
20:49
SPEAKER_02: So you need to make smart changes and adjustments to your price.
20:56
SPEAKER_02: And it's again, it's not always to increase price.
20:57
SPEAKER_02: Sometimes you want to lower price.
20:58
SPEAKER_02: Now, what happens when you lower price?
21:00
SPEAKER_02: So when you lower price, you can now increase demand.
21:03
SPEAKER_02: Increases demand means increases of your sales velocity of that product.
21:08
SPEAKER_02: And of course, increasing velocity and your conversion rate has a knock-on effect on your ranking position on Amazon.
21:16
SPEAKER_02: So now you can own page one instead of renting on page one.
21:20
SPEAKER_02: So there are these other orders of consequence that happen when you make a price change, and there's so many signals for the human brain to process that that is why deep learning is so important and dynamic pricing using AI is so important to make the decisions for you on your behalf.
21:38
SPEAKER_00: Yeah, and it sounds like because of those, you know, billions of data points, essentially, that AI is able to analyze way better than a human, uh, essentially in real time.
21:49
SPEAKER_00: Uh out of curious on this, and I've always wondered this does the system smart enough to know if one of my major competitors run out of stock and to, you know, maybe raise the price because there'll be less uh Competition.
22:02
SPEAKER_02: Yes.
22:03
SPEAKER_02: So and how that shows up is you have more demand coming to the page.
22:07
SPEAKER_02: So we have a seller, we have the biggest umbrella company on using prophecy.
22:13
SPEAKER_02: Now, interesting, if if there's a weather pattern change or aberration that happens, a storm happens in Texas, well, suddenly they have more demand coming to their page.
22:24
SPEAKER_02: And so we actually surge pricing for them.
22:27
SPEAKER_02: So they are starting to experience more demand and more units sold during the day.
22:32
SPEAKER_02: We're going to actually start pumping up price small and small increments in the day to capitalize on that more demand.
22:38
SPEAKER_02: And vice versa, if there was less demand or there was no storms happening.
22:43
SPEAKER_02: So it is smart enough.
22:44
SPEAKER_02: And it's even smart enough to even factor in inventory.
22:48
SPEAKER_02: So you can't make price changes without thinking about okay, well, what's my inventory position?
22:51
SPEAKER_02: Because if you think about it, we're all tying up cash in inventory.
22:56
SPEAKER_02: And so Amazon charges long-term storage fees.
22:59
SPEAKER_02: So as long-term storage fees are assessed and they're rolling on a monthly basis, we start lowering price to offset those fees out of the Amazon facility.
23:09
SPEAKER_02: And then vice versa, uh, if you're running low on stock, we start expanding your margin by pumping price up incrementally to essentially move that inventory at a slower pace until your new inbound inventory comes into stock so that you're making the most money as you possibly can on that inventory.
23:31
SPEAKER_00: That's pretty amazing.
23:32
SPEAKER_00: And there you go.
23:33
SPEAKER_00: I mean, that is a lot of different inputs for consideration.
23:36
SPEAKER_00: You're right.
23:37
SPEAKER_00: I didn't even think about the whole inventory aspect of it.
23:40
SPEAKER_00: Um, quick question.
23:42
SPEAKER_00: So what are there ways for me to influence dynamic pricing outside of pricing?
23:48
SPEAKER_00: So I guess what I'm getting at, like if I can improve my conversion rate because I've made some changes to the listing, or a year's gone by and I've acquired more reviews, so I have more validation.
23:59
SPEAKER_00: Does um how does that work with dynamic pricing?
24:02
SPEAKER_00: Like, can I influence it indirectly to get better pricing or margins on my products?
24:08
SPEAKER_02: Well, so it goes down to pricing power.
24:10
SPEAKER_02: And so we're pulling in all these signals.
24:12
SPEAKER_02: For example, how many reviews do you have, the quality of those reviews?
24:16
SPEAKER_02: We're comparing that versus your competition for your hero keywords.
24:20
SPEAKER_02: Okay, what is your competition?
24:21
SPEAKER_02: Do they have a lot of do they have a lot of reviews?
24:24
SPEAKER_02: What's the quality of those reviews?
24:26
SPEAKER_02: What's their price?
24:28
SPEAKER_02: What is uh their ranking on M.
24:30
SPEAKER_02: And so we're pulling all of this in and it's processing these data points together.
24:34
SPEAKER_02: It doesn't just lean on one data point, right?
24:36
SPEAKER_02: It's taking all of these points in and then deploying what it thinks is the optimal price point, it's making the decision.
24:42
SPEAKER_02: We're not making the decision.
24:43
SPEAKER_02: And then every decision it makes, it figures out, hey, was this a good decision or not a good decision and learns from that really, really fast and then deploys it back to market.
24:53
SPEAKER_00: Beautiful.
24:54
SPEAKER_00: Beautiful.
24:58
SPEAKER_02: The one thing we haven't covered, Will, I think is also important.
25:00
SPEAKER_02: I know you do PPC at your company.
25:03
SPEAKER_02: Yes.
25:03
SPEAKER_02: Is we uh we work with other agencies and uh because we don't have advertising built in, but we do know that pricing uh dictates your ad spend.
25:17
SPEAKER_02: So uh as an example, like most people are just changing their ad spend and trying to optimize for if they're if they're bidding on the right keywords.
25:25
SPEAKER_02: But when you make a price change, it changes your margin basis, it changes everything about uh how effectively you're managing your ad dollars to profit.
25:36
SPEAKER_02: And so an example could be if we take a price, let's just say it's$20 and we increase our price 20% in the course of a week.
25:46
SPEAKER_02: And then now you have the ability to increase your A cost 20%.
25:50
SPEAKER_02: So now we're doing both.
25:51
SPEAKER_02: We're increasing our ad spend 20%, our A cost, we're increasing price 20%.
25:57
SPEAKER_02: We have the ability to double contribution profit.
26:00
SPEAKER_02: So we work with agencies, we give them where pricing is going so they can effectively get their ad spend, uh, they can increase ad spend, for example, on high-performing keywords to harmonize price and ad spend together to have a significant unlock for contribution profit on the bottom line.
26:19
SPEAKER_00: That is pretty amazing.
26:21
SPEAKER_00: So essentially, uh with the so does your software actually make recommendations?
26:28
SPEAKER_00: I guess how does it all work on the advertising side?
26:30
SPEAKER_00: Would somebody manage the ads campaigns through prophecy or what does that look like?
26:36
SPEAKER_02: Right now, yeah, it's not through prophecy.
26:37
SPEAKER_02: So right now we're really strictly a pricing tool.
26:41
SPEAKER_02: And so let's just say we're working with agency ABC.
26:44
SPEAKER_02: So we have a shared Slack.
26:46
SPEAKER_02: We drop on Monday morning, we drop on the Slack where the price for the specific ASIN is going.
26:53
SPEAKER_02: We give them a recommendation for where spend should go.
26:56
SPEAKER_02: But of course, you can't just increase spend.
26:58
SPEAKER_02: You might want to be very targeted and precise about which keywords that are high performing and uh converting that you want to spend more of that budget on.
27:08
SPEAKER_02: So we give that to the agency, they implement it, uh, and we we work together.
27:14
SPEAKER_00: Beautiful.
27:15
SPEAKER_00: So technically, working together, you could improve margins and operational efficiency.
27:19
SPEAKER_00: At the same time, I could take those savings and invest it to potentially get more customers at a rate which is profitable.
27:26
SPEAKER_00: So I got a little bit of a flywheel going on.
27:30
SPEAKER_02: Exactly.
27:31
SPEAKER_02: Exactly.
27:32
SPEAKER_02: So yeah, I mean, I think we built a pretty cool mousetrap.
27:35
SPEAKER_02: One of the things that we focus on internally is just delivering profit to sellers and brands.
27:42
SPEAKER_02: Um, and I know a lot of agencies like aren't really focusing on that, right?
27:46
SPEAKER_02: So we really focus on hey, ACOS, fine, tacross is fine, but like let's look at your profit on your ad spend.
27:55
SPEAKER_02: Let's figure out how we can change your price and also harmonize your spend together and tying everything back into profit to enable more accurate bidding.
28:08
SPEAKER_00: That makes a lot of sense.
28:10
SPEAKER_00: And I think what's interesting too is like I feel like a lot of times when an agency or a brand is looking to make more money, for example, they're adding things.
28:19
SPEAKER_00: We're adding things to the budgets.
28:21
SPEAKER_00: And I feel like operational efficiency is often overlooked.
28:25
SPEAKER_00: And to your point you made earlier, small levers open big doors.
28:28
SPEAKER_00: You know, a 1% differentiation in costs uh in pricing adjustments can get you 10 to 15 percent uh in sales uh or you know, make up an efficiency.
28:40
SPEAKER_00: Um, that sounds like a no a no-brainer uh for any brand looking into it.
28:45
SPEAKER_02: Well, can I share my screen with the with the audience to be able to see my screen if I shared it?
28:49
SPEAKER_02: Yeah, let's do it.
28:51
SPEAKER_02: So if I show you this, I think this is a really good example.
28:55
SPEAKER_02: I think this brings it home.
28:58
SPEAKER_02: So if you go here to the all-in optimizer, you'll see here at the bottom this chart.
29:04
SPEAKER_02: And so this is explaining what I was sharing.
29:07
SPEAKER_02: So here's a$25 product, you increase it 20%.
29:10
SPEAKER_02: You increase your A cost 20%.
29:12
SPEAKER_02: Now I know a lot of people target A costs or target tacos, but what you have happening is that when you increase that 20% under the prophecy scenario, you'll see here your ad spend increases.
29:23
SPEAKER_02: Now your ROAS, your return on your ad spend decreases.
29:27
SPEAKER_02: So it makes the agency maybe not look as great.
29:31
SPEAKER_02: But in reality, what's happening is that your contribution profit dollars have doubled.
29:36
SPEAKER_02: Your profit on your ad spend has increased 27%.
29:41
SPEAKER_02: So we really try to move away from these revenue embedded metrics and more towards, hey, you have flexibility.
29:48
SPEAKER_02: There's moving in your price, you can harmonize that with your spend, and there's a significant non nonlinear unlock that could happen when you do this.
29:58
SPEAKER_00: And uh P O A S, that's profit uh profit events.
30:03
SPEAKER_02: Profit on the ad spend.
30:04
SPEAKER_00: Oh, very cool.
30:04
SPEAKER_00: I've never seen the POAS, and we were talking about it as a team.
30:08
SPEAKER_00: That's pretty interesting.
30:09
SPEAKER_00: And so everybody knows we just jumped on the prophecy website and we got to see that.
30:12
SPEAKER_00: That was under your pricing page, or yep.
30:15
SPEAKER_00: Beautiful.
30:16
SPEAKER_02: It's under the all and optimizer, right?
30:17
SPEAKER_02: So we have like just pricing, and then you can harmonize price and ad spend together.
30:21
SPEAKER_02: So the the the POAS number is a guiding force.
30:26
SPEAKER_02: Like POAS will tell you in isolate if you're effectively spending and maximizing your your your profit on that spend on those dollars.
30:35
SPEAKER_02: And you can use that as a guiding light across your ACENs.
30:40
SPEAKER_02: So you might say, hey, you know what?
30:41
SPEAKER_02: I'm okay with a POAS below one.
30:45
SPEAKER_02: And a POAS below a POAS of one means you're break even, a POAS of under one means that you're losing money.
30:50
SPEAKER_02: Let's just say you're a POAS of 0.75.
30:52
SPEAKER_02: It means that for every dollar you spend, you're losing 25 cents.
30:57
SPEAKER_02: And some customers and some brands are okay with that because they don't see maybe they're in the the newly, they just maybe launch their product and they're okay losing money on that.
31:08
SPEAKER_02: Or maybe they don't even see PPC as a profit center.
31:10
SPEAKER_02: But I think most important is like really just isolating that as a variable so you could make better decisions in the business.
31:17
SPEAKER_00: That's yeah, so what are some of the scenarios?
31:20
SPEAKER_00: So I have a launch product, that's where I may consider uh an unprofitable or break-even POAS, whereas uh if I had a product that's been in market for a few years, I'm gonna want to focus on whatever those goals are, which may be maybe more.
31:34
SPEAKER_02: You might want to just harvest, right?
31:35
SPEAKER_02: You might want to harvest, it might be a mature product in its lifecycle, and you may want to just harvest profitability.
31:40
SPEAKER_02: You want to make sure that you're generating uh more profit per dollar on your ad spend, or as much as you possibly can on that ad spend.
31:51
SPEAKER_00: Now, is there a difference between Poaz and Tacos?
31:56
SPEAKER_00: Is it kind of the same thing, or is there is there a difference just out of curiosity?
32:02
SPEAKER_02: Uh well, POAS specifically is your profit from your ad sales divided by your ad spent.
32:10
SPEAKER_00: Oh, okay.
32:11
SPEAKER_00: Profit from ad sales.
32:12
SPEAKER_00: I gotcha.
32:12
SPEAKER_00: So you're taking in all the cost of goods from ad sales.
32:15
SPEAKER_00: Okay, that makes sense.
32:16
SPEAKER_02: Exactly.
32:17
SPEAKER_02: So I mean, that's the reason why POAS to me is such an important metric, is that it includes the cost of delivery of the products.
32:26
SPEAKER_01: Yeah.
32:26
SPEAKER_02: So you're making the most informed decision because like there's so many fees on Amazon now.
32:31
SPEAKER_01: Yeah.
32:32
SPEAKER_02: Right?
32:32
SPEAKER_02: There's you have to isolate what your real contract, what your real profit is on every single SKU, and it's comprehensive.
32:41
SPEAKER_01: Yeah.
32:42
SPEAKER_02: Yeah, that really is.
32:43
SPEAKER_02: Whereas at that example I showed you, I was gonna say, like the example I showed you in that table of ACOS, uh, or the inverse of a cost is ROAS, same thing.
32:53
SPEAKER_02: It doesn't actually capture all the costs to deliver the product to the consumer.
32:58
SPEAKER_02: It can also mass performance.
33:00
SPEAKER_02: If you're like, hey, I want to have a target A cost of 20%, like anyone can hit that number.
33:06
SPEAKER_02: And so maybe it's simpler to calculate, but to me, it's a vanity metric at the at the end of the day.
33:15
SPEAKER_00: Do you find that most brands who come to you to use prophecy that they don't have a grip on their profit margin specifically within marketplaces?
33:26
SPEAKER_02: It depends.
33:27
SPEAKER_02: Uh, it's a it's always, I guess you don't you don't love that answer, but it on Amazon, it's like always nuanced, right?
33:32
SPEAKER_02: Like because sometimes you can have the biggest aggregator come to us and be surprised sometimes what I see in the data.
33:39
SPEAKER_02: And then you have the smallest company that comes to us, and they are so tight in their data and their grasp on the data.
33:46
SPEAKER_02: So it just depends if the founder is around, if the founder is not around, how big of a company, how mature they are.
33:54
SPEAKER_02: Uh, but I would say it's kind of like all over the place.
33:57
SPEAKER_00: Okay.
33:57
SPEAKER_00: Yeah, we experience the same.
33:59
SPEAKER_00: It always surprised me that we do get the scenarios.
34:01
SPEAKER_00: We'll we'll take in a customer and they're like, uh, we think our margins are roughly here, and then you dig into the data and uh it ends up being a little off.
34:09
SPEAKER_00: So I'm always surprised.
34:10
SPEAKER_00: Um, but I get it to your point.
34:12
SPEAKER_00: It comes to their operations and how much how much they're I always look at how close they are to the money, is generally uh how informed they tend to be.
34:21
SPEAKER_00: Beautiful.
34:22
SPEAKER_00: And then note I'd love to talk a little bit about prophecy before we kind of talk about the future e-commerce.
34:27
SPEAKER_00: But uh can you give me the the can you give me your mission statement?
34:30
SPEAKER_00: What's the mission of prophecy?
34:34
SPEAKER_02: Mission is just to help sellers and brands make more money.
34:37
SPEAKER_02: So we do that.
34:38
SPEAKER_02: We've started with pricing.
34:40
SPEAKER_02: Uh, we've obviously started to holistically add in advertising and inventory into everything that we do.
34:45
SPEAKER_02: We call it the whole the the trifecta.
34:49
SPEAKER_02: Uh, but you need to have all of those things involved.
34:51
SPEAKER_02: So, what we do is we help sellers make more cash.
34:54
SPEAKER_02: You want to make more cash, you want to think out of the box, you come to prophecy and we help you make more money.
35:01
SPEAKER_00: Beautiful.
35:02
SPEAKER_00: And then that note, so what are some key features that differentiate prophecy from some other tools on the market?
35:10
SPEAKER_02: Well, I don't know of another software that does private label repricing that's doing it the way that we're doing it.
35:16
SPEAKER_02: So, number one is you can have as many objectives as you want, whether you want to maximize profit, liquidate, uh, maximize unit velocity, protect your subscribe and save, or even get more lifetime value of your subscribe and save customers.
35:31
SPEAKER_02: We do all of that.
35:32
SPEAKER_02: We are not rule-based.
35:34
SPEAKER_02: So I think I only know like one or two rule-based repricers, and they only take into account one variable.
35:40
SPEAKER_02: And the problem with that is that you can't make decisions just based on one simple rule because it doesn't actually account for your competition.
35:47
SPEAKER_02: So that's a big, that's a big differentiator, is the fact that we pull in how does Amazon react and how does your competition react, and we inform the model that way.
35:54
SPEAKER_02: Um, three is we're not just a software, we're a service as well.
35:57
SPEAKER_02: We're a software with a service.
36:00
SPEAKER_02: And so what that means is that we are hand-holding you in the process with the data science team.
36:05
SPEAKER_02: Most brands actually never have or use a data scientist.
36:08
SPEAKER_02: And to me, it's a massive, massive leg up to have a data scientist on your staff co-piloting the way that we do with our brands.
36:16
SPEAKER_02: We have a shared Slack channel that we create, and we are constantly uh updating our our customers.
36:23
SPEAKER_02: Um, we're using real AI.
36:25
SPEAKER_02: I think that's a big one.
36:26
SPEAKER_02: There's a lot of AI words that are being thrown out there, kind of like paleo or gluten-free.
36:33
SPEAKER_02: Like that's on the front of a carton you see in the supermarket, but then you look at the ingredients and you're like, oh my God, what's in this?
36:40
SPEAKER_02: Uh and so we are using real deep learning, machine learning models that we built with state-of-the-art technology.
36:46
SPEAKER_02: Uh, and I think that's a pretty big differentiator.
36:49
SPEAKER_02: We put$2.4 million into the company to make that happen.
36:53
SPEAKER_02: And I would say just the last piece is our price, right?
36:55
SPEAKER_02: We don't take a percentage of revenue, we don't take a percentage of ad spend.
36:59
SPEAKER_02: We're a flat fee.
37:00
SPEAKER_02: We're not your partner, we're your we're your vendor, and we help you make more, and your your money is your money.
37:09
SPEAKER_00: Beautiful.
37:10
SPEAKER_00: I uh you guys cover you cover a lot, Chad.
37:12
SPEAKER_00: I like that, you know, having somebody who's working with repricers, I like that you take in the changes or the impact it has on Amazon, which I feel like is a big missing piece.
37:24
SPEAKER_00: And I haven't heard of anywhere else that is uses a data scientist as part of your team.
37:28
SPEAKER_00: So uh that's truly valuable.
37:30
SPEAKER_00: We could definitely use more data scientists here at Bellovix.
37:33
SPEAKER_00: Um beautiful.
37:34
SPEAKER_00: And uh last thing on proxy, can you share a success story of you know what you're most proud of or a unique and interesting uh case study you can share with the audience that would be a good use case for somebody in this situation?
37:48
SPEAKER_02: Yeah, I mean, there's so many, but if we go to propsy, there's a tab called results.
37:52
SPEAKER_02: We publicly share results with the permission of some of our customers.
37:57
SPEAKER_02: And uh I mean, I I guess we can go to the example of the umbrella example that I gave you earlier where we surge pricing, like when there's a storm that there is right now, but I'm looking outside my backyard, there's a storm happening, and so umbrellas will surge, and eventually uh that will show up as demand on Amazon and will essentially help that company make a whole lot more money.
38:20
SPEAKER_02: Uh, we have another example of someone that sells bed bug stuff.
38:24
SPEAKER_02: And so somebody promoted them in a YouTube video.
38:28
SPEAKER_02: He didn't even know about it.
38:29
SPEAKER_02: Like he couldn't even pay to get this kind of shout-out on YouTube.
38:32
SPEAKER_02: He just shared his product on YouTube.
38:35
SPEAKER_02: Sales started increasing.
38:38
SPEAKER_02: We detected it, and we helped to make another, I think,$200,000 that month specifically of uncaptured or lost profit that he would have never had.
38:48
SPEAKER_02: So we're kind of like these like reimbursement tools, but on the top line, whereas like the reimbursement tools are after the fact that go back to Amazon to help you find how they've messed up with or lost your inventory or charge overcharged you.
39:00
SPEAKER_02: We essentially made sure that you're making as much money on the actual sale as you possibly can.
39:05
SPEAKER_00: Yeah, a lot of uh opportunity for operational efficiency.
39:09
SPEAKER_00: And that's uh amazing.
39:10
SPEAKER_00: The fact that uh I had a supplement brand, same thing.
39:13
SPEAKER_00: They got the shout out, and you just see sales pop up.
39:16
SPEAKER_00: And when they uncover a TikTok influencer, YouTube, or it's something they they never expect.
39:21
SPEAKER_00: And uh you want to make sure you have inventory and you're able to capitalize on those opportunities.
39:26
SPEAKER_00: Um, beautiful.
39:27
SPEAKER_00: Last but not least, just want to talk, pick your brand about the future of e-commerce and technology.
39:32
SPEAKER_00: Um, so given your experience with prophecy, how do you envision the role of AI evolving in terms of e-commerce pricing strategies?
39:42
SPEAKER_02: Well, I think AI is already affecting pretty much everything on Amazon, right?
39:48
SPEAKER_02: So I think listings, uh, I think advertising, inventory, pricing, all of this will be will become AI more and more AI driven over time.
39:59
SPEAKER_02: And I the comparison that I use is if you look at what happened in the early 2000s on Wall Street, it was 90% human traders with like slips on the floor trading these stocks.
40:15
SPEAKER_02: And now 96% of Wall Street is all bots, really, like algorithms that are created to execute on trades.
40:26
SPEAKER_02: And I look at Amazon as nothing different than a basket of goods or commodity-driven marketplace.
40:33
SPEAKER_02: And these decisions should be made by machines, not by humans.
40:39
SPEAKER_02: And so over time, you're gonna see more decision making happening by machine learning algorithms and bots.
40:48
SPEAKER_02: And so it just so happens that we were the first to do it in pricing, and we'll be moving into a whole lot of other categories over time.
40:55
SPEAKER_02: Uh but I think this is the future of selling on Amazon, which is what I call the rise of the algorithmic brand, brands that are powered by the algorithm.
41:06
SPEAKER_00: I like that.
41:07
SPEAKER_00: Where do you think the human component is as we uh continue to see AI evolve and take over a lot of those responsibilities that maybe a market manager or your EPL might handle?
41:19
SPEAKER_02: Yeah, I think it's building a stronger connection.
41:22
SPEAKER_02: So a few things.
41:23
SPEAKER_02: I think it's building a stronger connection to the end user.
41:27
SPEAKER_02: I think uh a lot of these brands started from a point of inspiration.
41:31
SPEAKER_02: And then, you know, you like I always say that when I first started, I had to be a seller, but now I need to be an advertiser, now I need to be all these other things.
41:39
SPEAKER_02: And I think you can get back to the basics of like the reason why you started your company.
41:44
SPEAKER_02: Like, so for me, coming up with ideas around okay, what is the next product to move into?
41:48
SPEAKER_02: What's the next category to move into?
41:50
SPEAKER_02: What is the next innovative idea?
41:53
SPEAKER_02: This has to come, at least from right now, has to come from a human being.
41:56
SPEAKER_02: So I think it's connecting with the end user and also connecting with the point of inspiration that brought you to the dance on Amazon in the first place.
42:04
SPEAKER_00: Beautiful.
42:05
SPEAKER_00: That's well said.
42:06
SPEAKER_00: Uh, do you see any more technological innovations with prophecy for this calendar year?
42:11
SPEAKER_00: Are you guys uh any new features you're working on that uh that would get your clients super excited?
42:18
SPEAKER_02: Well, we just launched a whole lot of features, right?
42:20
SPEAKER_02: The surge pricing that I talked about, where we do checks throughout the day, start gradually increasing or decreasing price.
42:26
SPEAKER_02: Uh we just launched uh, let's see, the subscribe and save functionality so that we're protecting your subscribe and save, but also making as much money on the on the cohort of those customers.
42:39
SPEAKER_02: Um yeah, I mean, there's so much stuff that we put on our website, uh, and I don't even think our website even does justice to all the things that we've that we're doing and what we've built out.
42:46
SPEAKER_02: But I think it's that along with really the harmonization of ad spend because advertising, you can't just advertise on Amazon anymore.
42:55
SPEAKER_02: Like advertising is sort of the bare bones basics.
42:57
SPEAKER_01: Yeah.
42:58
SPEAKER_02: So yeah, forecasting that we built into the platform, inventory sensitivity that we built into the platform.
43:06
SPEAKER_02: Now, like, for example, you can synchronize price and variations, you can have them either synced tightly to the to each other, or you can have them be individuated.
43:15
SPEAKER_02: So each variation can be their own or on a certain spread of an anchored price.
43:19
SPEAKER_02: Like there's so many opportunities, and there's actually so much money to be made by making changes to your price that people just are losing billions of dollars by not doing it.
43:30
SPEAKER_00: Oh man, it sounds like it's a huge opportunity, and it sounds like prophecy is there to support those sellers.
43:35
SPEAKER_00: Chad, this was awesome, man.
43:37
SPEAKER_00: Thank you so much for taking the time uh and bestowing some knowledge with us.
43:41
SPEAKER_00: Uh to wrap it up, where can my where can our listeners uh find you?
43:46
SPEAKER_02: You can find me.
43:47
SPEAKER_02: I post uh musings and rants and interesting concepts on my LinkedIn, on Twitter.
43:54
SPEAKER_02: Uh yeah, that's where I'm posting largely.
43:57
SPEAKER_02: I'm gonna start spreading out a bit onto YouTube and doing some other fun stuff, so stay tuned.
44:02
SPEAKER_00: Beautiful.
44:03
SPEAKER_00: Thanks again for being with us, Chad.
44:04
SPEAKER_00: We appreciate it.
44:06
SPEAKER_02: Thanks for having me.
44:09
SPEAKER_00: Thank you, Chad Rubin, for sharing your valuable insights on optimizing Amazon operation through dynamic pricing.
44:16
SPEAKER_00: Your expertise has provided our listeners with practical strategies to improve their efficiencies and boost sales.
44:23
SPEAKER_00: For our audience, we hope you found today's discussion enlightening and full of actionable takeaways.
44:29
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44:36
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44:42
SPEAKER_00: Until next time, stay classy.