E-Commerce and Price Elasticity How Online Platforms Influence Consumer Choice

Abstract

E-commerce has redefined the global marketplace, adding dynamic pricing principle, and superior approaches to the proper implementation of revenue and consumer satisfaction. In this paper, various factors affecting outside the retail price are analyzed in detail, with emphasis on elasticity and newer technologies which give e-commerce pricing its inherently complex nature. Using real-time analytics to implementing machine learning methodology and using visualization tools such as visual analytics has helped the e-commerce platforms to improve response to the changes in markets and behavior of consumers. However, structural problems including price level disparities, costs of adjusting prices, and non-linear demand remain in place and essentially force firms to make ongoing fine-tuning of their methods. Also, features such as live streaming and interactive promotional functionalities have sprung up as key means of impacting on the consumer to gain trust in a product. In the next section, this paper distills the lessons learned from prior literature to provide a theoretical framework for understanding pricing strategies, market competition and consumer behavior that would lead to the sustainable profitability and competitiveness of e-commerce platforms.