What is Profit Peak and how does it optimise my prices?

Profit Peak is Splitly's algorithmic pricing optimiser. It tests prices around your current best known price. If it finds a more optimum price, it will slowly adjust your pricing over the course of a few days to the new optimum price. It can go up or down - whatever generates the maximum profits.

Profit Peak will calibrate for sales velocity too. It is well known that Amazon rewards higher conversions with higher rankings. This is why Profit Peak won't automatically move to the price that generates the highest profits initially, but in the long run it will figure out the best pricing for your products that give best results.

Profit Peak's algorithm works by assuming your pricing is always non-optimum.  This means it will constantly be changing, testing higher and lower prices then comparing them against each other. However, if a product is already optimally priced then testing higher or lower prices could mean less sales. The further you move away from the best price, the bigger the reduction in products. As such most of the price tests will be very close to the current best known price, with the odd price test further away from the current optimum price. This allows Profit Peak to remain as close to the optimum price while continuously be testing for better prices.

Profit Peak can also handle the management of when you'd like your stock to deplete. For many sellers, restocking can take several weeks. If you run out of stock during this period, you'll lose all traction and when you restock you'll have to start from the beginning again. When set with a stock deplete date, Profit Peak will hike up your prices if your product begins selling too fast such that it will sell out before the stock deplete date. Automatically raising your prices usually means less conversions, and so you can distribute sales evenly until your restock date.

Profit Peak is a slow algorithm that learns as it tracks more sales. When enabled, it won't immediately do anything drastic but will gravitate towards your most optimum price point, the one which gives the highest profit. However, for your own piece of mind you may set a minimum and maximum price.

Profit Peak works best when you have at least several sales per day. However, Profit Peak can still optimise your prices with just a few sales, although it might take a little longer to see good results.

For an overview of the Profit Peak settings,  please see here.

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