The technology that enables dynamic pricing in eCommerce typically involves algorithms powered by artificial intelligence and data analysis. These systems analyze various factors, including customer behavior, market demand, competitor pricing, and inventory levels, to adjust prices in real-time. By leveraging predictive analytics, businesses can optimize pricing strategies to maximize revenue and enhance competitiveness. Dynamic pricing allows companies to respond quickly to market fluctuations, ensuring that prices reflect current trends and consumer willingness to pay, ultimately driving sales and profitability.