Here's an example: You have an item that is priced at $10. The minimum goal is 5 and the maximum goal is 10 within an hour; if you sell less than 5 you go lower in price and if you sell more than 10 you will increase in price. If you sold between 5-10 units then the price would not change at all
Given the above scenario, if you only sold 3 units in an hour, the item would drop down in price by $5 or until hit its Min Price. (It's important to note that the sales goal directly correlates to the target marketplace, if you have a velocity pricing strategy on an eBay item it will be specifically referencing the order velocity on eBay orders)
Recommended for private label sellers or items that do not have any competitors. This strategy will give you amazing control over your price point and is the most “seller customized” strategy provided you set all parameters based on sales and not any competition.
This is great for any site where you cannot reprice based on competitor data such as Jet.com