An algorithm is more than a simple calculator. In the age of Big Data, mere calculations can take a long time. This is true for mathematics, search results, and Amazon repricing tools.
Let’s look at the dictionary definition of an algorithm, and how it differs from rules. An algorithm, from Merriam-Webster:
A procedure for solving a mathematical problem (as of finding the greatest common divisor) in a finite number of steps that frequently involves repetition of an operation; broadly: a step-by-step procedure for solving a problem or accomplishing some end especially by a computer.
Furthermore, according to Wikipedia, an algorithm does not simply lead to a conclusion or some result set in stone. Instead, it calculates a function:
An algorithm is an effective method expressed as a finite list of well-defined instructions for calculating a function.
As you can see, algorithms, unlike rules, do not prescribe a result. Rules are rigid that way, like a habit, even stricter. Rules are often of a straightforward nature, following an if then logic. An algorithm, on the other hand, is a proper calculation and processing of large data (even Big Data); automated reasoning, if you will.
Examples of algorithms are prevalent in the world’s leading technologies. It starts Google, whose search engine results are based on secretive algorithms, which they are said to change about 500 times a year. Google’s algorithm evaluates and ranks websites and pages, ultimately determining the order in which they show on the search results page.
Amazon’s Buy Box is another example of the use of an algorithm. Clearly, Amazon does not follow a single rule, or several rules for that matter. It does not pick a Buy Box winner simply based on price, for instance. Amazon collects offers that are changing in real-time, not only in price but also in stock availability, seller ratings, performance records and other metrics to determine the winner of the Buy Box.
Feedvisor Repricing Algorithm
Amazon’s third party sellers will agree that the Buy Box plays an important role in increased sales. It takes an algorithm to best understand Amazon’s own algorithm and the state of affairs at any given product search at large. To obtain the Buy Box sellers need a repricer that’s not based on price alone.
FeedVisor’s algorithmic repricer analyzes the data and determines the optimal price for your products, which will land your product in the Buy Box. As an algorithm, it is accurate, fully automated and free of rules, never risking your profit margins or compromising your prices.
Our algorithmic repricer is even more valuable once you take into consideration that Amazon does not provide data at an individual seller level under its current API. It takes an algorithm to identify the big picture the current state of the market, other sellers’ prices and your optimal price. Get Feedvisor – the only algorithmic repricer.