We all remember Goldilocks and the Three Bears, right? In the classic fairytale, Goldilocks tries three bowls of porridge: one that was too hot, one that was too cold, and one that was just right.

Bowls of porridge are very much like prices for products; there’s a sweet spot that’s just right, and merchants and retailers should be aware of this when operating their e-commerce stores.

What is e-commerce price optimization?

E-commerce price optimization, sometimes referred to as dynamic pricing, simply refers to attempting to come up with the best price point for products based on the market demand. It’s an active process wherein merchants have a constant understanding of how their prices stack up against the competition and adjust accordingly to best optimize the balance between a good sales margin and a healthy sales volume.

• It’s an approach that sits in contrast to the conventional pricing model where retailers determine a profit margin based on the cost of goods sold without any adjustments.
• E-commerce price optimization could technically be a manual process, but in today’s online world in which consumers have so many more options and are increasingly tech-savvy, merchants and retailers need technology to effect this on their own at scale, Burc Tanir, CEO of Prisync, a pricing optimization software firm, told Retail Brew.

“Having the capability of continuously monitoring what your competitors are charging for the same item is actually a technological challenge,” he said. “Because typically, in most cases, merchants, like e-commerce sellers, are doing this in a manual way.”

Keep reading here.—KM

For their new Dreams Sunset perfume launch, Coach dreamed big. The goal: high engagement rates with a young, trendy audience. They knew they needed influencers to get them there, so they teamed up with the experts for influencer and creator programs at Studio by impact.com.

The results: a launch surpassing the industry benchmark by a whopping 18% .

To create an authentic relationship with their target audience, Coach partnered with influencers of different backgrounds, followings, and content styles. And their fresh approach paid off—the influencer campaign snagged Coach a reach of over 2.3m. With Studio by impact.com’s guidance, Coach’s campaign:

• boosted organic reach to 327k
• increased engagement by 4.5%
• generated 117 pieces of influencer content

Check out the full case study.

With a little help from viral TikTok beauty dupes and a Super Bowl campaign with Jennifer Coolidge, E.l.f. Beauty reported its 17th consecutive quarter of net sales growth last week.

E.l.f., whose brand portfolio includes E.l.f. Cosmetics, E.l.f. Skin, Well People, and Keys Soulcare, reported its net sales rose 78% year over year to $187.4 million in its fiscal fourth quarter, and 48% to $578.8 million for the full year. Its gross margin also increased to 69% in Q4 with help from pricing and lower transportation costs.

• The company is anticipating 22% to 24% net sales growth in fiscal 2024, but expects a stronger performance for fiscal Q1.

The company continues to compete with mass cosmetic legacy brands. In Q4, it surpassed Revlon and CoverGirl to become the No. 3 brand in mass cosmetics, Tarang Amin, e.l.f. Beauty’s chairman and CEO, noted, adding it’s the only brand in the top five to operate a DTC site. The company also grew shelf space at Target, Walmart, CVS, and Shoppers Drug Mart in the spring, and will increase its space at Ulta Beauty, CVS, and Walgreens in the fall.

Keep reading here.—EC

Welcome back, everyone. We know you’ve been waiting on tenterhooks through the long weekend for this story. Well, if you own a small business in Los Angeles, you gotta act fast.

In relief: The pandemic state of emergency is over, but there’s still a little bit of relief funding available for LA businesses. Until tomorrow, small businesses can apply for up to $15,000 for missed rental payments incurred during the pandemic—that’s March 1, 2020 through April 30, 2023.

In cannabis: Speaking of deadlines, June 1 is a date New York cannabis distributors have been dreading for a while now. On Thursday, the state’s conditional distributor licenses expire, which means producers may not be able to get their products into stores, and licensed stores might be unable to obtain more product to sell.

In earnings: On Thursday, Dollar General, Lululemon, and Macy’s will report their Q1 results.

• Dollar General is facing Department of Labor fines of almost $3.5 million for failed inspections at several stores. Employees have been vocal and critical of working conditions, and it has affected worker retention.

Keep reading here.—KM

Today’s top retail reads.

Watch out: Forget polished luxury campaigns, a range of “rude” YouTube watch reviewers are popping up and actually influencing consumers to shop. (Vogue Business)

Hot and fresh: As restaurant prices continue to climb, diners are looking for more than just good food when they go out to eat, and some restaurants are now trying to be more hospitable and warm to lure them in. (the New York Times)

Staying alive: Faced with an uncertain economy, underwear brands are experimenting with different strategies to stay in business, including lowering their prices and trying to get into the luxury space. (Spy)

A li’l luxury: From being sent entire product lines to sippin’ on bubbly while you browse, Retail Brew explores the varying luxury shopping experiences and expectations around the globe. Sponsored by Square.*

^{*This is sponsored advertising content.}

A roundup of our favorite retail multimedia content from across platforms this week—from TikTok to Twitter. We’re keeping you hip, and you’re welcome.

Free for all: Days after Taco Bell set on its mission to liberate the phrase “Taco Tuesday,” LeBron James has joined the noble cause. (Taco Bell on Linkedin)

Course of action: Retailers are having a hard time with theft, and while some retailers like Lululemon have a “no chase” policy, not everyone agrees with it. (@MargBarAmerica on Twitter)

Choose your fighter: Sure, fast food often tastes the same, but that doesn’t mean it can’t be fun. Like, did you know the famous McDonald’s Chicken McNuggets come in four different shapes? (McDonald’s on Linkedin)

Bit by bit: English fashion designer Grace Wales Bonner has put a lot of thought into crafting each of the brand’s pieces. Recently, the brand delved into how its famous jeans are made from hand-sewn strips of cotton sourced from Ghana, Mali, and Burkina Faso. (@walesbonner on Instagram)

Catch up on the Retail Brew stories you may have missed.

• Returning online purchases to stores instead of shipping them is on the rise
• What retailers need to know about the Saudi Arabian luxury consumer
• How Kizik’s store showcases what it means to be a ‘hands-free’ shoe