Dynamic pricing of products in e-commerce using ensemble of contextual bandits

Abstract

The embodiments of the present disclosure herein address the unresolved problem of obtaining price recommendation not only for the immediate moment but also for a continuous period until a market-driven price trigger necessitates change. Embodiments herein provide a framework for dynamic pricing of one or more products in an e-commerce retail using at least one contextual Bandit (CB) technique. The framework provides an ensemble of contextual bandits for dynamic pricing in e-commerce. The framework amalgamates strengths of one or more CB models. The framework incorporates an ensemble layer to critically review immediate pricing suggestions, ensuring their long-term applicability, thereby balancing margin stability and customer satisfaction over time.