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README.md
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| 1 |
+
# Dynamic Pricing Engine for E-commerce Website
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| 2 |
+
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| 3 |
+
An end-to-end intermediate MVP for real-time dynamic pricing with:
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| 4 |
+
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| 5 |
+
- Synthetic data generation for 50,000+ SKU style scenarios
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| 6 |
+
- Random Forest and XGBoost training pipelines
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| 7 |
+
- FastAPI inference API for real-time price recommendations across synthetic and Kaggle retail model profiles
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| 8 |
+
- Streamlit dashboard for simulation and monitoring
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| 9 |
+
- Competitor price blending, inventory adjustments, and flash sale detection
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| 10 |
+
- Optional Redis and Kafka integrations
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| 11 |
+
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| 12 |
+
## Architecture
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| 13 |
+
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| 14 |
+
1. `scripts/generate_sample_data.py` creates synthetic click, order, inventory, and competitor signals.
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| 15 |
+
2. `scripts/train_model.py` trains a baseline Random Forest and an XGBoost regressor, then saves the best model.
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| 16 |
+
3. `app/api.py` serves real-time pricing recommendations through FastAPI.
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| 17 |
+
4. `app/dashboard.py` provides a Streamlit control panel for scenario analysis and monitoring.
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| 18 |
+
5. `app/streaming.py` provides optional Kafka event producer and consumer helpers.
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| 19 |
+
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| 20 |
+
## Project Structure
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| 21 |
+
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| 22 |
+
```text
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| 23 |
+
app/
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| 24 |
+
api.py
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| 25 |
+
config.py
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| 26 |
+
dashboard.py
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| 27 |
+
feature_engineering.py
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| 28 |
+
modeling.py
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| 29 |
+
pricing_engine.py
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| 30 |
+
schemas.py
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| 31 |
+
streaming.py
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| 32 |
+
data/
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| 33 |
+
processed/
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| 34 |
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raw/
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| 35 |
+
models/
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| 36 |
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scripts/
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| 37 |
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generate_sample_data.py
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| 38 |
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train_model.py
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| 39 |
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tests/
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| 40 |
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smoke_test.py
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| 41 |
+
```
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| 42 |
+
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| 43 |
+
## Quick Start
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| 44 |
+
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| 45 |
+
### 1. Create a virtual environment
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| 46 |
+
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| 47 |
+
```powershell
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| 48 |
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python -m venv .venv
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| 49 |
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.venv\Scripts\Activate.ps1
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| 50 |
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pip install -r requirements.txt
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| 51 |
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```
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| 52 |
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| 53 |
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### 2. Generate sample data
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| 54 |
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| 55 |
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```powershell
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| 56 |
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python scripts/generate_sample_data.py --rows 25000
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| 57 |
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```
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| 58 |
+
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| 59 |
+
### 3. Train the model
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| 60 |
+
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| 61 |
+
```powershell
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| 62 |
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python scripts/train_model.py
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| 63 |
+
```
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| 64 |
+
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| 65 |
+
### Train on a real Kaggle dataset
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| 66 |
+
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| 67 |
+
Recommended dataset:
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| 68 |
+
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| 69 |
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- Kaggle `Retail Price Optimization`: https://www.kaggle.com/datasets/suddharshan/retail-price-optimization
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| 70 |
+
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| 71 |
+
Download `retail_price.csv` and place it at:
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| 72 |
+
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| 73 |
+
```text
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| 74 |
+
data/raw/kaggle/retail_price.csv
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| 75 |
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```
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| 76 |
+
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| 77 |
+
Then train with:
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| 78 |
+
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| 79 |
+
```powershell
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| 80 |
+
python scripts/train_model.py --profile kaggle_retail --data-path data/raw/kaggle/retail_price.csv
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| 81 |
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```
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| 82 |
+
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| 83 |
+
Notes:
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| 84 |
+
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| 85 |
+
- This trains a real-dataset pricing model using the Kaggle retail schema.
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| 86 |
+
- The FastAPI service now exposes a dedicated Kaggle request schema at `/price/recommend/kaggle` when a `kaggle_retail` model is loaded.
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| 87 |
+
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| 88 |
+
### 4. Run the FastAPI service
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| 89 |
+
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| 90 |
+
```powershell
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| 91 |
+
uvicorn app.api:app --reload
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| 92 |
+
```
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| 93 |
+
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| 94 |
+
Docs will be available at `http://127.0.0.1:8000/docs`.
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| 95 |
+
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| 96 |
+
### 5. Run the Streamlit dashboard
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| 97 |
+
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| 98 |
+
```powershell
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| 99 |
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streamlit run app/dashboard.py
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| 100 |
+
```
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| 101 |
+
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| 102 |
+
## API Endpoints
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| 103 |
+
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| 104 |
+
- `GET /health`: Service health and artifact status
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| 105 |
+
- `POST /price/recommend`: Returns a recommended price, confidence score, and pricing signals for the synthetic profile
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| 106 |
+
- `POST /price/recommend/kaggle`: Returns a recommended price and price gap analysis for the Kaggle retail profile
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| 107 |
+
- `POST /events/order`: Registers an order event for flash sale detection
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| 108 |
+
- `GET /monitoring/summary`: Returns pricing and event summary metrics
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| 109 |
+
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| 110 |
+
## Core Pricing Logic
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| 111 |
+
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| 112 |
+
The engine combines:
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| 113 |
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| 114 |
+
- ML-predicted baseline price
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| 115 |
+
- Competitor blending: default `70% model / 30% competitor`
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| 116 |
+
- Inventory pressure adjustments
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| 117 |
+
- Demand surge adjustments
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| 118 |
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- Flash sale emergency multiplier
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| 119 |
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- Floor and ceiling guardrails
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| 120 |
+
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| 121 |
+
## Example Request
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| 122 |
+
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| 123 |
+
```json
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| 124 |
+
{
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| 125 |
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"sku_id": "SKU-1024",
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| 126 |
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"category": "electronics",
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| 127 |
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"brand": "brand_b",
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| 128 |
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"customer_segment": "premium",
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| 129 |
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"hour_of_day": 20,
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| 130 |
+
"day_of_week": 5,
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| 131 |
+
"is_weekend": 1,
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| 132 |
+
"is_festival": 1,
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| 133 |
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"inventory_level": 23,
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| 134 |
+
"inventory_days_cover": 4.1,
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| 135 |
+
"competitor_price": 1849.0,
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| 136 |
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"click_through_rate": 0.074,
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| 137 |
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"conversion_rate": 0.038,
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| 138 |
+
"units_sold_last_5m": 7,
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| 139 |
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"units_sold_last_1h": 33,
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| 140 |
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"base_cost": 1210.0,
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| 141 |
+
"current_price": 1799.0
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| 142 |
+
}
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| 143 |
+
```
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| 144 |
+
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| 145 |
+
## AWS Deployment Notes
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| 146 |
+
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| 147 |
+
- EC2: Host FastAPI and Streamlit on one instance for a demo, or split them later if needed.
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| 148 |
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- S3: Good fit for model artifacts and price history snapshots.
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| 149 |
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- Lambda: Optional competitor polling and scheduled retraining.
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| 150 |
+
- CloudWatch: Use for API logs, dashboard process logs, and alert thresholds.
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| 151 |
+
- Redis: Cache recent recommendations and event counters.
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| 152 |
+
- Kafka: Use self-managed Kafka for demos, or Amazon MSK only after checking cost.
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| 153 |
+
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| 154 |
+
Current AWS note:
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| 155 |
+
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| 156 |
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- AWS Free Tier changed on July 15, 2025. Official AWS docs say accounts created before July 15, 2025 can use `t2.micro` free tier eligibility in supported regions, while accounts created on or after July 15, 2025 use a newer credit-based/free-plan model with eligible instance types such as `t3.micro`. Verify your account type before launch.
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| 157 |
+
- Amazon S3 is covered through the newer AWS Free Tier credit/free-plan model, not a simple permanent 5 GB rule for all new accounts.
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| 158 |
+
- Amazon MSK pricing is pay-as-you-go on the official AWS pricing page. Treat MSK as a potential paid service unless your account credits cover it.
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| 159 |
+
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| 160 |
+
## Docker Deployment
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| 161 |
+
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| 162 |
+
Build and run the full stack locally or on a VM:
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| 163 |
+
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| 164 |
+
```powershell
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| 165 |
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docker compose up --build
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| 166 |
+
```
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| 167 |
+
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| 168 |
+
Then open:
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| 169 |
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| 170 |
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- API docs: `http://127.0.0.1:8000/docs`
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| 171 |
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- Streamlit dashboard: `http://127.0.0.1:8501`
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| 172 |
+
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| 173 |
+
Notes:
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| 174 |
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| 175 |
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- Compose mounts `data/` and `models/` from the host so retrained artifacts persist outside the containers.
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- Replace `.env.example` with a real `.env` file before production deployment.
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If you want to build each image separately:
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| 179 |
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| 180 |
+
```powershell
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| 181 |
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docker build -t dynamic-pricing-api -f Dockerfile .
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| 182 |
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docker build -t dynamic-pricing-dashboard -f Dockerfile.streamlit .
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```
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+
## EC2 Deployment
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Recommended target path:
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```text
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| 190 |
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/opt/dynamic-pricing-engine
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```
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Quick setup outline on Ubuntu EC2:
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```bash
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sudo apt update
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| 197 |
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sudo apt install -y python3.13-venv
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cd /opt
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sudo mkdir -p dynamic-pricing-engine
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| 200 |
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sudo chown ubuntu:ubuntu dynamic-pricing-engine
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```
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Copy the repo to `/opt/dynamic-pricing-engine`, then:
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+
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| 205 |
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```bash
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cd /opt/dynamic-pricing-engine
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python3 -m venv .venv
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source .venv/bin/activate
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| 209 |
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pip install --upgrade pip
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pip install -r requirements.txt
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| 211 |
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cp .env.example .env
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chmod +x deploy/ec2/start_api.sh
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chmod +x deploy/ec2/start_dashboard.sh
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python scripts/generate_sample_data.py --rows 25000
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python scripts/train_model.py --profile kaggle_retail --data-path data/raw/kaggle/retail_price.csv
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```
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| 217 |
+
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Important:
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| 220 |
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- The current Streamlit dashboard expects a `kaggle_retail` model artifact.
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| 221 |
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- If you deploy both API and dashboard together, train the `kaggle_retail` profile and use `POST /price/recommend/kaggle`.
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| 222 |
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- If you want the synthetic API profile in production, deploy the API by itself or refactor the dashboard to use the synthetic schema.
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+
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Install the included `systemd` services:
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```bash
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sudo cp deploy/ec2/dynamic-pricing-api.service /etc/systemd/system/
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sudo cp deploy/ec2/dynamic-pricing-dashboard.service /etc/systemd/system/
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sudo systemctl daemon-reload
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sudo systemctl enable dynamic-pricing-api
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| 231 |
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sudo systemctl enable dynamic-pricing-dashboard
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sudo systemctl start dynamic-pricing-api
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sudo systemctl start dynamic-pricing-dashboard
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| 234 |
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sudo systemctl status dynamic-pricing-api
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| 235 |
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sudo systemctl status dynamic-pricing-dashboard
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```
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Open these after the instance is up and the EC2 security group allows inbound `8000` and `8501`:
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```text
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| 241 |
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http://<your-ec2-public-ip>:8000/docs
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| 242 |
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http://<your-ec2-public-ip>:8501
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| 243 |
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```
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| 244 |
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| 245 |
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Suggested EC2 security group inbound rules for a demo:
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| 246 |
+
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| 247 |
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- `22` from your IP only
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| 248 |
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- `8000` from your IP or a narrow trusted range
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| 249 |
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- `8501` from your IP or a narrow trusted range
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| 250 |
+
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| 251 |
+
For public production access, put Nginx in front and expose only `80` and `443`.
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| 252 |
+
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| 253 |
+
## EC2 With Docker
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| 254 |
+
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| 255 |
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If you prefer containers on EC2 instead of `systemd`, install Docker on Ubuntu and run:
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| 256 |
+
|
| 257 |
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```bash
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| 258 |
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cd /opt/dynamic-pricing-engine
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docker compose up --build -d
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| 260 |
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docker compose ps
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| 261 |
+
```
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| 262 |
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| 263 |
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Then open:
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| 264 |
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| 265 |
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```text
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| 266 |
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http://<your-ec2-public-ip>:8000/docs
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| 267 |
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http://<your-ec2-public-ip>:8501
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| 268 |
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```
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| 269 |
+
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| 270 |
+
## Extension Ideas
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| 271 |
+
|
| 272 |
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- Replace synthetic data with marketplace telemetry
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| 273 |
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- Add Flink or Spark Structured Streaming for event windows
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| 274 |
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- Add SHAP explainability for pricing decisions
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| 275 |
+
- Introduce RL policy optimization for multi-step pricing
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| 276 |
+
- Connect to Amazon Personalize for customer-level contextual pricing
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| 277 |
+
"# Dynamic-Pricing-Engine"
|