Abstract: Real-time pricing is a form of 'dynamic pricing,' and it enables online sellers to adjust prices in real-time in response to variations in demand and competition to achieve higher revenue or improve customer satisfaction. As modern e-commerce implementations become more cloud-based, this paper proposes a cloud-native framework for a real-time pricing system. We take a requirement driven approach to come up with a modular architecture and a set of reusable components for real-time pricing. Following DSRM methodology, during the design phase, we identify and develop the theoretical foundations for key parts of the system, such as pricing models, competition and demand watchers, and other analytics components that fulfill the functional requirements of the system. At the stage of implementation, we describe how each of these components and the entire cloud application will be configured using an AWS cloud native implementation. As a framework, this work can support a variety of pricing models, demonstrating that multiple pricing models have been discussed. Other low-latency, reusable components described in this work provide the ability to react quickly to changes in demand and competition. We also provide a price-cache that decouples pricing model calculation from end-user price requests and keeps price query latency to a minimum. For a real-time system, where latency stands to be the most desired NFR, we validate the system for price-request latency (found to be a single digit of milliseconds) and market reaction latency (less than a second). Overall, our proposed framework provides a comprehensive solution for real-time pricing, which can be adapted to different business needs and can help online sellers optimize their pricing strategies.

Archana Kumari and Mohan Kumar. S, “A Cloud Native Framework for Real-time Pricing in e-Commerce” International Journal of Advanced Computer Science and Applications(IJACSA), 14(4), 2023. http://dx.doi.org/10.14569/IJACSA.2023.0140457

@article{Kumari2023,
title = {A Cloud Native Framework for Real-time Pricing in e-Commerce},
journal = {International Journal of Advanced Computer Science and Applications},
doi = {10.14569/IJACSA.2023.0140457},
url = {http://dx.doi.org/10.14569/IJACSA.2023.0140457},
year = {2023},
publisher = {The Science and Information Organization},
volume = {14},
number = {4},
author = {Archana Kumari and Mohan Kumar. S}
}