Rule-based pricing uses if-then logic to automate pricing decisions. A rule might read: "If the lowest competitor price drops below my current price by more than $2, match to $0.01 below them — unless that price would be below my margin floor."
Rules can be stacked, prioritized, and scoped to specific categories, channels, or SKUs. The sophistication of a rule-based system is determined by how many variables it can evaluate simultaneously and how it resolves rule conflicts when multiple conditions are true at once.