There is no more dynamic market than e-commerce. Between 2010 and 2014, it grew by $ 30 billion a year for the US alone. From 2014 to 2017 already by 40 billion p.a.. Even in Germany, online sales are well above € 60 billion a year. Within this sales sector, the battle for market share is merciless.
With comparable articles, prices are often recalculated several times a day. Retailers´ motives behind dynamic pricing are the price behavior of competitors (36%) and the ordering behavior of customers (26%).
Successful online retailers know: the customer firstly chooses a product. The reasons are manifold. He then looks for the best deal – the best price in terms of delivery time and costs, evaluation of the supplier and qualified product description. Loyalty to individual suppliers is rather low.
A survey of the most important online retailers in 2018 shows: “In 15 of the 16 online retailers examined showed dynamic price differentiation.” The strategies of the suppliers are very different – the direction of price changes goes both up and down. In the study already quoted, we get confirmation that individual products from the same supplier varied by up to over 100% up and 50% down of the average product price.
In order to influence the market through intelligent pricing in the dealer’s interest, the correct and comprehensive information about direct competition is crucial. The more precise and up-to-date one knows the competition, the better one can control the sales volume and optimize margins. Whoever is ahead in this digital race wins the market and increases profits.
Aimondo offers by far the best and richest information about all products – if necessary, several times a day and over numerous offerers for virtually any number of items. Cleanly sorted, with understandable and manageable data presentation. With historical development and soon also with forecasts. And Aimondo calculates the right price fully automatically – per product. For more sales and more margin. That’s the crucial data combination which human beings can not deliver. Aimondos virtually unlimited Cloud-based computing power and Artificial Intelligence with machine learning algorithms can.
Each Aimondo customer can define the right strategy for each product, every product group or entire product range. New for every information-task – individually or from a schema collection.
And at a price that is a fraction of a cent per item.
This is what the young company with decades of team experience has been doing since 2016 – every day. Without failure. With the analysis of individual providers and entire platforms such as Amazon, eBay, Google Shopping, Idealo and many, many international platforms. For top companies in many countries around the world.
Aimondo AG’s goal is to play a leading role in shaping the most profitable areas of e-commerce and artificial intelligence, occasionally supported by the process integration of blockchain technologies.
It was a rainy afternoon in autumn 2015, when Heinrich Müller, then director of the German branch of a very large US international online tool sales company, decided that the course must be set anew for the economic success of the company. Information about the competition was needed. And this for all 350,000 products in the range. So a supplier comparison of information providers was sketched and carried out. The results were sobering and did not meet Henry’s expectations o any extend. No supplier had more than half of all results – and to a large extent incorrect, incomplete or both.
In the past, years of entrepreneurial experience with information procurement from the net and the internal functions of search engines and shops had already been gained. So he created and re-assembled his own tools to test the functional principles. With success.
The Group offered him to leave the company and to suspend data collection as an external provider. Heinrich accepted and joined forces with a companion from previous years who had entrepreneurial knowledge coupled with successful experience in telecommunications, IT and Internet sectors as well. From this arose Aimondo. First with rudimentary and precise functions and search results. Based on a strong database architecture, with the help of an army of software robots driven by a distributed brain of Artificial Intelligence. In the cloud and as a result for the customer as a finished service – not a program. A technology whose results exceeded those of other suppliers by a whole dimension. However it was complex and could be used only by highly specialized and specially trained experts.
The team had already grown to a good dozen in 2017 – developers with special skills in database functions, machine learning, artificial intelligence, and usability specialists. Agile software development in a team, supported by a large number of external experts for isolatable modules and a group for user simulation. In 2017 and 2018, the entire package was assessed by an auditing firm with SAP experience. Result: all offered functions are fulfilled in every detail. Fast and secure as well as redundant. The code complies with the best industry standard, is adequately documented and commented. The testable scalability is practically unlimited, data security is high and all code elements are traceable by qualified persons should one or the other key person fail.
All in all, the Aimondo team in Duesseldorf follows the criteria, requirements and instructions of the EN ISO 9004 standards that have been adapted to meet practical requirements.
The range of functions now offers the completely autonomous use of the entire system by the users – shops, manufacturers and operators of platforms. The registration process runs fully automatically – supported by a chat system that can be used by customers as support free of charge. Users choose an amount of data that suits their needs, pre-pay and upload the information for which they want competitive information. Aimondo provides this information and customers can define parameters for individual products or entire groups that correspond to their business strategy. Price and volume leadership, margin definitions, volume aspirations, sell-out control with margin optimization as well as several nuances in between are freely adjusted. In this way, an automatically regulated algorithm calculates the ideal price, taking into account the competition and the context. In connection with psychological price points, which otherwise only an experienced businessman knows.
The results are delivered in a format that is optimized for people or databases (ERP systems). There is a whole series of useful statistics modules that display the important management information at a glance at the touch of a button.
This complements successful e-commerce at the point that is decisive for market and success.
In addition to various external licenses and know-how modules, Aimondo AG has acquired all shares of Aimondo GmbH and ensures that services from the German-speaking countries are scaled out into the world. A global roll-out plan exists and can be financed and initiated by Aimondo AG. In addition, the basic technology is a platform on which further applications are created by combining powerful databases with artificial intelligence, machine learning algorithms, almost unlimited scalability and capacity, and the security of blockchain technology as SaaS applications.
Dear reader, you know this: a company lists who is already a customer. And that should motivate the prospective customer to weigh in safety and to buy. Aimondo AG develops a portfolio of very special services that are available to everyone – without any discrimination and without favouring individual partners. However, nobody should and may assume that his very special competitor or even several use the Aimondo services. Because Aimondo users have the decisive competitive advantage if they configure their individual parameters correctly. Up to controllable market leadership in selected segments or earnings-oriented margin optimization on a periodic adjustment basis.
For us it is enough to enable processes in the background that help to safeguard the health and the existence of other companies and that we ourselves achieve excellent economic figures by clever full automation of otherwise time-consuming and error-prone human work.
The initiators have very intensive experience in advanced communication- and IT-worlds. From network level to artificial intelligence. If you want to become a major customer, are an investor or a scientist interested in socially valuable research – then get to know us personally, we will disclose our CV and check whether we think on compatible levels. Be sure that we as the entrepreneurs have served and advised customers to their satisfaction in the past, whose names you all know and respect. From global network operators to banks, mechanical engineers, chemical companies and so on.
As a company, we and our subsidiaries have not yet lost a single customer because our performance was not sufficient. There hasn’t been a day when we haven’t fulfilled our delivery promise. Admittedly, we also had to work a night shift from time to time in rare cases in order to solve problems. But our customers don’t realize that – and that’s what matters.
We would also be happy to discuss whether we have customers who might conflict with your interests. Or we can provide you with references when appropriate and opportune. Test us, talk to us and create an individual “track record” with us. With trust, respect and to the all-round considerable advantage.
No, they free from routine work. The decisions are made in the end by people. The manpower that was previously used for research and extensive pricing can be used to implement increased sales. The complex AI-based decisions that Aimondo proposes or makes are based on intensive research – carried out by self-learning algorithms. They help to make better decisions by giving us people a better overview of the decision-making situation.
We distinguish between two modes in which we make decisions. Namely “fast thinking” and “slow thinking”. With fast thinking, we draw quick conclusions from a few facts. With these we make on rather uninformed basis a predominant intuitive decision. Here the human being is the biggest source of errors within this “structured routines”.
Aimondo’s artificial intelligence helps to get out of this „fast thinking“, which is usually faulty, and to weigh more facts, information and influencing factors against each other in the mode of slow thinking. In Aimondo Dynamic Pricing, these considerations are incorporated into decisions that affect entire article groups and assortments if they follow a comparable logic.
In practice, customers report that they not only achieve over 20% more sales but also increase their adjusted profit by a double-digit percentage. The relatively low costs of deployment thus contribute to the fact that working conditions are improved, incomes increased or new business fields opened up through the release of funds.
What is certain is that the use of digitalized business intelligence and algorithm-based pricing will change the division of labor between man and machine. In eCommerce as well as transferred analogously to other areas. The Aimondo Group is well on the way to becoming one of the strongest innovation drivers of this global change.