U.S. patent application number 11/441267 was filed with the patent office on 2007-12-06 for method and system for balancing stock.
Invention is credited to Alan Gould.
Application Number | 20070282694 11/441267 |
Document ID | / |
Family ID | 38791483 |
Filed Date | 2007-12-06 |
United States Patent
Application |
20070282694 |
Kind Code |
A1 |
Gould; Alan |
December 6, 2007 |
Method and system for balancing stock
Abstract
A method for facilitating and enabling a retailer having
original manufacture surplus inventory of a product to sell the
inventory to another retailer or to the general consuming public.
The method comprises use of a Web site having a first level or
portion exclusively for sales between subscribers to the site, such
as retailers, and a second level or portion for sales between a
retailer and the general consumer. The method includes receiving
information regarding the surplus inventory product and an invoice
from the vendor or original manufacturer of the product. An entity
associated with the Web site verifies the authenticity of the
product and facilitates the sale of the product with another
retailer at a first price, or with the general consumer at a second
price. In certain instances, a vendor can be a subscriber for
selling to other subscribers.
Inventors: |
Gould; Alan; (Northbrook,
IL) |
Correspondence
Address: |
SCHWARTZ COOPER CHARTERED;IP DEPARTMENT
180 NORTH LASALLE STREET, SUITE 2700
CHICAGO
IL
60601
US
|
Family ID: |
38791483 |
Appl. No.: |
11/441267 |
Filed: |
May 25, 2006 |
Current U.S.
Class: |
705/14.39 ;
705/26.8; 705/27.1 |
Current CPC
Class: |
G06Q 30/0239 20130101;
G06Q 10/087 20130101; G06Q 30/0633 20130101; G06Q 30/0609 20130101;
G06Q 30/0641 20130101; G06Q 30/0601 20130101 |
Class at
Publication: |
705/26 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00 |
Claims
1. A method for enabling a subscriber of a Web site portal to sell
surplus new product to other subscribers and the general consumer,
the method comprising the steps of: providing a Web site hosted by
at least one computer in communication with a computer network;
electronically receiving surplus new product information for
posting on the Web site from a first subscriber enrolled to use the
Web site; electronically receiving invoice information pertaining
to the surplus new product from the first subscriber, wherein the
invoice information includes an original vendor price for the
surplus new product; verifying the surplus new product is
authentic; setting a reduced price for resale of the surplus new
product on the Web site to other subscribers enrolled to use the
Web site, the reduced price being an amount below the original
vendor price to the first subscriber; posting the surplus new
product information on the Web site for viewing by the other
subscribers to the Web site; and, offering the surplus new product
for sale on the Web site to the other subscribers at the reduced
price.
2. The method of claim 1 further comprising the steps of:
electronically receiving an order for the surplus new product from
one of the other subscribers; receiving a shipment of the ordered
surplus product from the first subscriber; inspecting the ordered
surplus product from the first subscriber; and, one of forwarding
the ordered surplus product to the one of the other subscribers if
the ordered surplus product passes inspection and returning the
ordered surplus product to the first subscriber if the ordered
surplus product does not pass inspection.
3. The method of claim 2 wherein each subscriber is a retailer for
at least one of jewelry and watches.
4. The method of claim 3 wherein the step of inspecting the ordered
surplus product from the first subscriber includes: assessing the
quality of one of jewelry and watches received from the first
subscriber by an entity associated with an owner of the Web
site.
5. The method of claim 4 further comprising the step of: performing
maintenance on the jewelry until it is able to pass inspection the
entity.
6. The method of claim 1 further comprising the steps of: enrolling
each subscriber to the website wherein the enrolling step includes
for each subscriber: ascertaining that each subscriber is a
retailer for a similar product type; and, charging each subscriber
a fee for use of the Web site.
7. The method of claim 1 further comprising the steps of: dividing
the Web site into a first portion and a second portion, wherein the
first portion enables the first subscriber to offer to sell the
surplus new product to other subscribers at the reduced price and
the second portion enables the first subscriber to offer to sell
the surplus new product to the general consumer.
8. The method of claim 7 further comprising the steps of: setting a
consumer retail price of the surplice new product wherein the
consumer retail price is an amount above the vendor price; posting
the surplus product information on the second portion of the Web
site; and, offering the surplus new product for sale to the general
consumer on the second portion of the Web site at the consumer
retail price.
9. The method of claim 8 further comprising the step of: paying an
owner of the Web site a fee for each sale of the surplus new
product by the first subscriber using the Web site.
10. A method for facilitating and enabling a retailer to sell
jewelry items to other retailers, the method comprising the steps
of: providing a Web site hosted by at least one computer in
communication with a computer network; receiving jewelry
information from a first retailer pertaining to in-stock jewelry
items of the first retailer over the computer network receiving
verification information pertaining to the in-stock jewelry items
from the first retailer over the computer network; receiving
original vendor price information of the in-stock jewelry items
from the first retailer over the computer network; calculating a
reduced sales price of the jewelry items for resale to other
retailers below the original vendor price to the first retailer;
and, offering the jewelry items for sale on the Web site to other
retailers at the reduced sales price.
11. The method of claim 10 further comprising the steps of:
receiving an offer to purchase at least a portion of the in-stock
jewelry items from a second retailer over the computer network;
and, receiving the at least a portion of the in-stock jewelry items
by an entity associated with maintaining the Web site; transferring
the at least a portion of the in-stock jewelry items to the second
retailer by the entity wherein no information pertaining to the
identity of the first retailer is disclosed to the second retailer
and no information pertaining to the identity of the second
retailer is disclosed to the first retailer by the entity.
12. The method of claim 11 further comprising the step of:
accessing the quality of the at least a portion of the in-stock
jewelry items by the entity prior to transferring the at least a
portion of the in-stock jewelry items to the second retailer.
13. The method of claim 12 further comprising the step of:
performing maintenance on the at least a portion of the in-stock
jewelry items by the entity prior to transferring the at least a
portion of the in-stock jewelry items to the second retailer.
14. The method of claim 13 further comprising the step of: charging
the first retailer for the performing maintenance on the at least a
portion of the in-stock jewelry items.
15. The method of claim 10 further comprising the step of:
guaranteeing the authenticity of the jewelry items to the second
retailer by the entity.
16. The method of claim 10 further comprising the steps of:
dividing the Web site into a retailer-to-retailer portion and a
retailer-to-general consumer portion wherein only retailers are
permitted access to the retailer-to-retailer portion of the Web
site; calculating a general consumer price of the jewelry items;
and, offering the jewelry items to general consumers at the general
consumer price on the retailer-to-general consumer portion of the
Web site.
17. A method for enabling a retailer to move in-stock items
utilizing a multi-level Web site, the method comprising the steps
of: providing a Web site hosted by at least one computer in
communication with a computer network, the Web site having a first
retailer-to-retailer level and a second retailer-to-consumer level;
receiving in-stock items descriptive information from a first
retailer over the computer network; receiving original manufacturer
price information of the in-stock items; calculating a first price
of the in-stock items for sale to other retailers on the first
retailer-to-retailer level of the Web site, the first price being a
percentage below an original manufacturer price of the in-stock
items to the first retailer; calculating a second price of the
in-stock items for sale to consumers on the second
retailer-to-consumer level of the Web site, the second price being
a percentage above the original manufacturer price of the in-stock
items; offering the in-stock items for sale on the first level of
the Web site at the first price; and, offering the in-stock items
for sale on the second level of the Web site at the second
price.
18. The method of claim 17 further comprising the step of:
verifying the authenticity of the in-stock items by an entity
associated with maintaining the Web site.
19. The method of claim 18 further comprising the step of:
receiving invoice information pertaining to the in-stock items from
the first retailer over the computer network.
20. The method of claim 18 further comprising the steps of:
providing a third vendor-to-retailer level of the Web site; and,
posting vendor product information onto the third level for sale to
retailers.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] None.
FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT
[0002] N/A.
TECHNICAL FIELD
[0003] The invention generally relates to a method and system for
balancing stock between retailers using an Internet Web site; and
more particularly to a method and system for anonymously selling
surplus stock from a first retailer to a second retailer and from
retailers to the public using the Internet Web site.
BACKGROUND OF THE INVENTION
[0004] Retailers and others face problems when a product becomes
dated or non-saleable. That is, goods that a particular retailer
cannot sell in a time frame that is deemed reasonable become a
liability to that retailer, and tie up resources (e.g., money,
display space) that could be better used for other product. To
overcome this problem, retailers will attempt to return such dated
goods to the vendor from which they purchased the goods, or will
place the goods on sale.
[0005] In certain industries, such as the jewelry business, vendors
have begun requiring retailers who desire to return product
previously purchased from the vendor, to purchase other product
from the vendor. For example, if a retailer desired to return a
particular line of product that did not sell well for the retailer,
such as a line of rings by a particular designer, the vendor would
require the retailer to purchase another line of product in order
for the vendor to accept the returned product line and refund the
money to the retailer on that line. In fact, some vendors will
require the retailer to spend more on the other product than the
amount being returned. For instance, the vendor may require the
retailer to spend $5 on other product for every $1 of returned
product.
[0006] Such arrangements are tolerable to the retailer if the
retailer has an ongoing relationship with the vendor and the
retailer was going to re-order new product in any event. However,
the conditions imposed on the retailer by the vendor become
problematic if the retailer does not want other product from the
vendor, or is not in a financial condition to spend $5 for every $1
returned.
[0007] If the retailer cannot return the product to the vendor, the
retailer is forced to "mark down" the goods until they become
saleable. If the retailer is still unable to sell the marked down
products, the retailer must take the loss.
[0008] Vendors generally dislike taking back returned product (even
at the advantageous conditions typically imposed). However, the
vendor can often resell the returned merchandise to another
retailer that can more readily sell such product to the consumer.
The second retailer's ability to sell such product may be a result
of the second retailers location, type of business or other similar
factors.
[0009] The present invention is provided to solve the problems
discussed above and other problems, and to provide advantages and
aspects not provided by prior practices for resolving problems of
this type. A full discussion of the features and advantages of the
present invention is deferred to the following detailed
description, which proceeds with reference to the accompanying
drawings.
SUMMARY OF THE INVENTION
[0010] The present invention provides an alternative method and
system for enabling a retailer to move product the retailer cannot
sell or no longer wishes to sell. The method and system take
advantageous of the fact that product that may not sell well for
one retailer may be in higher demand by another retailer. The other
retailer may have a different location, clientele, method of
advertising or some other difference that allows the other retailer
to sell the product.
[0011] To facilitate the movement of surplus product that one
retailer cannot sell to the consuming public to another retailer,
the present invention provides a Web site accessible over the
Internet for selling the product. Rather than taking a complete
loss or incurring the burdens associated with returning the
product, a retailer can sell directly to another retailer. The Web
site also provides additional services in facilitating such
transactions. For example, the Web site (i.e., the entity
associated with running or maintaining it) will take steps to
verify that the product being offered by a retailer is authentic.
The Web site will also set prices for the product and assist in
transferring the product from one party to the other.
[0012] The Web site can be split in portions or sections. One
section can be dedicated to retailer-to-retailer sales as
mentioned. To ensure only retailers are provided access to this
section, the Web site can require an enrollment or subscriber
process, and provide appropriate safeguards (e.g., a password) for
obtaining access. A second portion can also be implemented for
allowing retailers to sell the product directly to the general
consumer. Moreover, additional sections can be provided for
allowing vendors to sell to retailers and/or directly to the
consuming public.
[0013] According to one aspect of the invention, a method for
enabling a subscriber of a Web site portal to sell surplus new
product to other subscribers is provided. The method comprises the
steps of providing a Web site hosted by at least one computer in
communication with a computer network. Available Internet
technology for hosting and maintaining a Web site can be used to
implement the Web site for the present invention. The method
further includes electronically receiving surplus new product
information for posting on the Web site from a first subscriber
enrolled to use the Web site. The information can include, for
example, a description of the surplus new product, photographs of
the product, product names and identification numbers. For jewelry
and watch products, such descriptive information can include, for
example, carat weight, types of metals/gems or other materials
incorporated into the product, etc. The information can be set up
in a format provided or required by the Web site.
[0014] The Web site is also configured for electronically receiving
invoice information pertaining to the surplus new product from the
first subscriber. The invoice information should include an
original vendor price for the surplus new product. Upon receiving
the vendor price, the method includes setting a reduced price for
resale of the surplus new product on the Web site to other
subscribers enrolled to use the Web site. The reduced price is set
at an amount below the original vendor price paid by the
subscriber. This can be a predetermined amount, or an amount that
may fluctuate depending on various factors (such as the
subscriber's desire to unload the product). For example, the
reduced price can be a set percentage under the original vendor
price. This enables the selling subscriber to quickly move the
product and free up almost all of the money invested, and provides
the buying subscriber an incentive to obtain the product via the
site rather than going to the vendor.
[0015] In order for subscribers to feel comfortable utilizing the
Web site, the method further includes verifying the surplus new
product is authentic. This is performed by an entity associated
with maintaining the Web site, such as the entity owning and/or
administering the Web site. Similarly, a third party associated
with such entity could also perform such functions at the entity's
direction. Examination of the invoice information may be sufficient
to verify the authenticity in most cases. However, additional
information can be requested from the posting subscriber. This can
include receiving and reviewing any and all gem identification
certificates obtained from independent agencies.
[0016] After setting the reduced price and verifying the
authenticity of the product, the method includes posting the
surplus new product information on the Web site for viewing by the
other subscribers to the Web site and offering the surplus new
product for sale on the Web site to the other subscribers at the
reduced price.
[0017] The Web site is configured for electronically receiving an
order for the surplus new product from one of the other
subscribers. When an order is processed, the method includes
receiving a shipment of the ordered surplus product from the first
subscriber by the entity associated with maintaining the Web site
(again, or a third party at the direction of the entity). In
addition to receiving the shipment, the entity can be responsible
for inspecting the ordered surplus product from the first
subscriber and either forwarding the ordered surplus product to the
ordering subscriber if the ordered surplus product passes
inspection or returning the ordered surplus product to the first
subscriber if the ordered surplus product does not pass inspection.
The Web site can require a particular quality standard for the
product to pass inspection.
[0018] In accordance with one embodiment, the method is utilized
for jewelry and watches. In this regard, the subscribers are
preferably retailers of such jewelry and watches. When inspecting
such product, the method can include assessing the quality of the
jewelry or watches received from the first subscriber by an entity
associated with maintaining the Web site. If the quality is not up
to the standard of the entity, the method can also include taking
steps to place the jewelry in a condition to enable it to pass
inspection. This can include polishing the jewelry,
inspecting/testing and tightening stone settings if necessary, etc.
For watches, the method can include inspecting/testing and
lubricating the watch movement, if necessary, as well as
inspecting/testing and replacing or recharging the battery, etc.
The work done to bring the products up to the desired quality can
be charged back to the subscriber selling the product.
Alternatively, other arrangements, such as a higher subscription
fee can be worked out for such services.
[0019] The Web site will provide functionality for enrolling each
subscriber to the site. This can include the steps of ascertaining
that each subscriber is a retailer for a similar product type and
charging each subscriber a periodic fee (such as an annual or
monthly fee) for use of the Web site. In addition to the periodic
fee, the site can also charge a commission for sales made through
the site.
[0020] According to one aspect of the invention, the Web site is
divided into a first portion and a second portion. The first
portion enables the first subscriber to offer for sale the surplus
new product to other subscribers at the reduced price. The second
portion enables the first subscriber to offer to sell the surplus
new product to the general consumer.
[0021] In order to sell to the general consumer, the method can
include setting a consumer retail price of the surplus new product.
The consumer retail price is a predetermined amount above the
vendor price paid by the subscriber. The method further includes
posting the surplus product information on the second portion of
the Web site and offering the surplus new product for sale to the
general consumer on the second portion of the Web site at the
consumer retail price.
[0022] In accordance with another embodiment of the invention, a
method is provided for facilitating and enabling a retailer to sell
jewelry items to other retailers. The method utilizes a Web site
hosted by at least one computer in communication with a computer
network. The method further includes the steps of receiving jewelry
information from a first retailer pertaining to in-stock jewelry
items of the first retailer over the computer network and receiving
verification information pertaining to the in-stock jewelry items
from the first retailer over the computer network. In addition to
the jewelry and verification information, the method includes
receiving original vendor price information of the in-stock jewelry
items from the first retailer over the computer network. In many
instances, the price and the verification information can be in the
form of a vendor invoice for the product. The method further
includes calculating a reduced sales price of the jewelry items for
resale to other retailers and offering the jewelry items for sale
on the Web site to other retailers at the reduced sales price. The
price can be based on a predetermined percentage below the original
vendor price.
[0023] The method further comprises the step of receiving an offer
to purchase at least a portion of the in-stock jewelry items from a
second retailer over the computer network. The entity associated
with maintaining the Web site can facilitate the purchase by
receiving the at least a portion of the in-stock jewelry items and
transferring the at least a portion of the in-stock jewelry items
to the second retailer by the entity. The purchasing and selling
retailers identity can remain anonymous. That is, no information
pertaining to the identity of the first retailer is disclosed to
the second retailer and no information pertaining to the identity
of the second retailer is disclosed to the first retailer by the
entity.
[0024] The entity can further facilitate the sale by accessing the
quality of the at least a portion of the in-stock jewelry items by
the entity prior to transferring the at least a portion of the
in-stock jewelry items to the second retailer. If necessary, the
entity can be responsible for polishing the at least a portion of
the in-stock jewelry items (or performing other maintenance work as
generally discussed above) prior to transferring the at least a
portion of the in-stock jewelry items to the second retailer. The
polishing or other maintenance can be performed by the entity or a
third party at its direction. The first retailer can be charged for
such work.
[0025] The method can further include the entity guaranteeing the
authenticity of the jewelry items to the second retailer.
Accordingly, the verifying step and the assessing step take on
greater importance to the entity.
[0026] According to one aspect of the embodiment, the method can
include dividing the Web site into a retailer-to-retailer portion
and a retailer-to-general consumer portion. Preferably, only
retailers are permitted access to the retailer-to-retailer portion
of the Web site. For the retailer-to-general consumer portion of
the Web site, the method includes calculating a general consumer
price of the jewelry items and offering the jewelry items to
general consumers at the general consumer price on the
retailer-to-general consumer portion of the Web site.
[0027] According to yet a further embodiment of the invention, a
method for enabling a retailer to move in-stock items utilizing a
multi-level Web site is provided. The method comprises the step of
providing a Web site having a first retailer-to-retailer level and
a second retailer-to-consumer level. The method further includes
receiving in-stock items descriptive information from a first
retailer over the computer network and receiving original
manufacturer price information of the in-stock items.
[0028] Based on the information received, the Web site is able to
calculate a first price of the in-stock items for sale to other
retailers on the first retailer-to-retailer level of the Web site
where the first price can be a predetermined percentage below a
original manufacturer price of the in-stock items and, calculate a
second price of the in-stock items for sale to consumers on the
second retailer-to-consumer level of the Web site where the second
price can be a predetermined percentage above the original
manufacturer price of the in-stock items. The in-stock items can
then be offered for sale on the first level of the Web site at the
first price; and, offered for sale on the second level at the
second price.
[0029] This method can also include verifying the authenticity of
the in-stock items by an entity associated with maintaining the Web
site. This can include receiving invoice information pertaining to
the in-stock items from the first retailer over the computer
network. In one preferred embodiment of the invention, the in-stock
items are designer name brand jewelry items or watches.
[0030] The method can include providing a third vendor-to-retailer
level of the Web site. Thus vendors can become subscribers and post
vendor product information onto the third level for sale of
products directly to retailers.
[0031] The invention also includes a system (i.e., computers,
databases, wired and wireless network connections, etc.) and
software for implementing the functions of the Web site discussed
herein. Additionally, the invention also includes a graphical user
interface to facilitate such implementation.
[0032] The economy of scales associated with the present invention
will significantly benefit the subscribers to the Web site.
Retailers (and in some cases vendors) enrolling with the Web site
will be able to quickly and easily reach a plurality of other
retailers. This allows advertising and other costs associated with
maintaining the site to be spread throughout the subscriber group.
This is vastly more efficient than each retailer maintaining its
own site.
[0033] Other features and advantages of the invention will be
apparent from the following specification taken in conjunction with
the following drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
[0034] To understand the present invention, it will now be
described by way of example, with reference to the accompanying
drawings in which:
[0035] FIG. 1 is a block diagram of a Web site for use by retailers
and consumers in accordance with aspects of the present invention;
and,
[0036] FIG. 2 is a block diagram of another embodiment of a Web
site for use by retailers, consumer and vendors in accordance with
aspects of the present invention.
DETAILED DESCRIPTION
[0037] While this invention is susceptible of embodiments in many
different forms, there is shown in the drawings and will herein be
described in detail preferred embodiments of the invention with the
understanding that the present disclosure is to be considered as an
exemplification of the principles of the invention and is not
intended to limit the broad aspect of the invention to the
embodiments illustrated.
[0038] The present invention enables a retailer to easily move
product or stock that the retailer cannot sell in a timely manner
to other retailers or to the general public. This frees up money
for the retailer to invest in other product that may sell better
for that retailer. In one example described in detail herein, the
invention is particularly useful for balancing stock between
retailers in the jewelry industry. However, other industries can
implement the system and method disclosed.
[0039] In the jewelry industry, retailers are often required to
purchase certain lines of product (e.g., a particular named
designer's line of rings, bracelets or necklaces) in bulk amounts
from a vendor. For example, the retailer may only be able to
purchase product in minimums of $25,000 or $50,000 or more.
[0040] For product that sells well, this does not become a problem.
However, if the product doesn't sell, the retailer is left with
stock that it cannot move, and has tied up resources in such stock
that cannot be used for other product. This is a problem even when
there is no requirement to buy in bulk.
[0041] As described above, in the past, retailers have attempted to
return product that doesn't sell to the vendor the retailer
originally purchased the product from. However, vendors in the
jewelry business will often require the retailer to purchase other
product from the vendor (e.g., different styles or other designer's
jewelry) in order for the vendor to accept any returned
merchandise. Moreover, the vendor may require the retailer to
purchase more than what is being returned. For example, the vendor
may require the retailer to spend $5 on new product for every $1 of
returned product.
[0042] In some instances, returning the product to the vendor under
the conditions imposed by the vendor is not practical for the
retailer. The retailer may not want or like any of the other
product lines available through the vendor, or may not have the
resources to purchase five times the amount being returned.
Accordingly, the retailer will have to look elsewhere to unload the
product.
[0043] The system described provides several avenues for the
retailer to get rid of product that does not sell well for the
retailer without having to incur the hardship of dealing with the
vendor. The system accomplishes this by removing the vendor from
the equation.
[0044] It has been found that sometimes a product that doesn't sell
well at one location for a first retailer may be in high demand at
other locations by other retailers. The present invention takes
advantage of such demand to the benefit of both the selling
retailer and the purchasing retailer.
[0045] Referring to FIGS. 1 and 2, the method and system of the
present invention includes a Web site 10 that is hosted by at least
one computer (such as a server). The computer is in communication
with a computer network, such as the Internet 12. The Web site 10
acts as a portal to enable retailers of unsold (i.e., surplus)
stock (i.e., product) to sell the stock to other retailers or the
general public. The Web site 10 is reachable by known browser
software and technology.
[0046] The present method provides two primary avenues for the
retailer to move or sell the surplus stock, and thus free up the
retailer's resources for new product. The first way involves the
retailer selling the surplus stock to other retailers of similar
product. The second way involves the retailer selling the surplus
stock to the general public.
[0047] Under either path, one or more retailers 14 (e.g., Retailer
A--Nth in FIG. 1) must first sign up or enroll with the Web site 10
as subscribers. Each subscriber can be charged a periodic fee, such
as an annual or monthly fee, by the entity associated with
maintaining the Web site 10 for use of the services provided via
the Web site 10. Alternatively, or in addition to the periodic fee,
the subscribers may also be charged a fee or a commission for
product that is sold through the site 10.
[0048] The Web site 10 is divided into two primary portions or
sections 16 and 18 (as shown in FIG. 1). The first portion 16 of
the Web site 10 is for retailer-to-retailer transactions, and the
second portion is for retailer-to-consumer transactions (i.e., the
general public). As discussed below, a modified first portion can
be implemented wherein a vendor can act as a subscriber to sell
and/or advertise product directly to other retailer subscribers.
Alternatively, a separate vendor to retailer portion of the site 10
can be created for such transaction.
[0049] The subscription to the Web site 10 allows the retailer 14
to post information relating to the surplus inventory or product
the retailer 14 wants to sell on the Web site 10. To accomplish
this, a retailer 14 that has been enrolled as a subscriber, logs
onto the Web site 10 and navigates to a portion of the Web site 10
for sending information relating to any surplus product in the
retailer's possession. The log on procedure can include typical
safeguards, such as requiring a password or other identification
information of the subscriber.
[0050] A variety of information can be submitted relating to the
surplus inventory. In this regard, the information relating to the
surplus inventory can include the name of the product (and for
jewelry, the designer's name); a product description; photographs
or drawings of the product; original invoice price, current price
offered to other subscribers or to general public; catalog or item
numbers; etc.
[0051] The Web site 10 is set up for electronically receiving the
surplus product information for posting on the Web site from the
subscriber. This information may be reviewed and/or formatted by
the entity associated with maintaining the Web site (e.g., the
owner of the Web site or a designated administrator of the Web
site) prior to posting on the site for others to see. This will
ensure that the postings are in compliance with any rules or
regulations of the Web site, and that product information from
different retailers conform to the preferred format for the
site.
[0052] The Web site 10 is also set up for electronically receiving
invoice information pertaining to the surplus new product, such as
a verifiable original invoice from the vendor. The invoice
information should include the price paid for the product by the
subscriber. This information is used for setting a price of the
product on the Web site 10. It can also be used for verifying the
authenticity of the product by the entity associated with
maintaining the Web site 10.
[0053] A first price is calculated for posting the product on the
retailer-to-retailer portion 16 of the Web site 10. In this regard,
the Web site 10 includes the functionality for calculating or
setting a reduced price for resale of the surplus product on the
Web site 10 to other subscribers 14 enrolled to use the Web site
10. For other subscribers 14, the price is reduced a predetermined
amount below the original vendor price, such as 5% below.
[0054] Once the reduced price is determined, the surplus product is
posted on the retailer-to-retailer portion 16 of the Web site 10
wherein it will be offered for sale at the reduced price to other
subscribers 14. Only subscribers 14 will be permitted access to
this portion 16 of the Web site.
[0055] A second--consumer--price is calculated for posting the
product on the retailer-to-consumer portion 18 of the Web site 10.
The consumer price is a predetermined amount above the vender
price. Preferably, for example, the consumer price is 20% above the
vendor price to the retailer.
[0056] The surplus product is then offered for sale to the general
public on the retailer-to-consumer portion 18 of the Web site 10 at
the consumer price. Each consumer 20 can access this portion 18 of
the Web site 10 through the Internet 12 and purchase product.
[0057] Unlike other on-line Web sites that sell new product, the
system and method of the present invention requires certain unique
actions by the entity associated with maintaining the Web site 10.
That is, in addition to calculating the appropriate prices and
posting the surplus inventory information on the Web site 10, the
entity associated with maintaining the Web site is also responsible
for other activities relating to the sale of the surplus inventory.
One such activity is verifying the authenticity of the product
being offered by the retailer. This may include examining the
original invoice information, or other further research necessary
to ensure the product is authentic.
[0058] After another retailer or a consumer agrees to purchase one
or more items from a retailer, the entity will receive the product
from the retailer, and will assess the quality of the product
before shipping to it to the purchaser. If the product is
tarnished, the entity can polish (or arrange to have a third party
do so) the product until it meets the quality criteria established
by the entity, before shipping it to the buyer.
[0059] Importantly, the identity of the subscribers is kept
confidential from the other subscribers and the public. To overcome
any problems associated with keeping this information confidential,
the entity maintaining the Web site and/or the owner of the Web
site 10 can provide a guarantee that the product being purchased is
authentic. Further, if the product is rejected by either the
purchasing subscriber or consumer, the product can be returned to
the retailer (via the entity) at the retailer's expense.
[0060] Referring to FIG. 2, another aspect of the invention is
shown. In addition to allowing the retailers to sell to each other
and to the public, the Web site 10 can also allow vendors 22 to
become subscribers, and allow such vendors access to sell product
to other subscribers. In the embodiment shown in FIG. 2, the Web
site 10 has an URL of jewelrystockbalancing.com.
[0061] The vendor can provide the Web site 10 with information
pertaining to product it wants to place on the site. The vendor
product information can be posted and the product offered for sale
on the site. A vendor price can be calculated for selling the
product to the retailers. Preferably, this price is below what the
retailers would normally pay if they went to the vendor
directly.
[0062] In accordance with another aspect of the invention, the
method can include the entity associated with the maintaining the
Web site 10 (or its representative) taking a more active role in
selling product. This can occur when too much of the same or
similar product is being posted on the Web site 10 by multiple
retailers 14. The entity can obtain permission by all or most of
the retailers 14 to bundle the product together and take steps for
selling it to a third party in a single transaction. This can be
done at a further reduced price.
[0063] A large number of requirements can be implemented in the
business model described with respect to use and functionality of
the Web site and entity discussed above. For example, the site can
require that all retailers be in the same type of business (e.g.,
jewelry). To ensure this, the retailers may be required to provide
verification of by means of a store lease, business license, resale
certificate in residing state of business, etc.
[0064] When purchasing product from the site, the entity associated
with maintaining the site can provide an invoice to the purchasing
retailer or consumer. This invoice can act as an original invoice
for subsequent postings of the product (i.e., the verification has
already been performed in the original sale to the second
subscriber or consumer).
[0065] The site can require that all merchandise be under warranty
by the original retailer in terms of the factory warranty of any
product, which carries such a warranty. Similarly, the site can
require retailers to guaranty the condition of product or be
charged to properly recondition to like new saleable condition.
[0066] Additionally, retailers can be required to provide any and
all certificates which apply to the product they are trying to
sell.
[0067] The site can require retailers to indemnify and hold
harmless the site for any and all infractions of vendor agreements
signed between retailer and original vendor.
[0068] Terms for shipping and payment can also be spelled out. For
example, all merchandise must be available for shipment within an
agreed upon time yet to be determined. Also, purchasing retailers
agree to pay for product prior to shipping, and selling retailers
agree to take return of product for quality failure at their
cost.
[0069] The site can also require all subscribers to monitor the
site and the transactions taking place on the site. This
requirement makes the site an attractive location for advertising
by vendors and other that wish to reach the subscribers of the
site.
[0070] According to one embodiment of the invention, in operation
the subscribers will give the site a user's name upon enrollment.
This can not be the store's name or other identifying descriptor in
order to keep all subscribers anonymous. The site will then assign
a password to the subscriber to use the site. Subscribers must log
on to the Web site under their user name and password to either buy
or sell product. In this regard, subscribers will have a separate
access to the site from the general public.
[0071] If a subscriber is trying to sell product on the site 10,
they will have to comply with guidelines for placing product for
sale. Some of these guidelines are, but not limited to the
following: [0072] A. All pictures of product must be at a certain
level of pixel resolution and size. [0073] B. All pictures must be
made on the "background" provided by the site. [0074] C. All
descriptions of the product must be provided from the original
invoice. This invoice will be scanned to go with product on the
site; however the name of company selling and invoice number will
be hidden from view. This includes, but is not limited to the
following: [0075] 1. Model/style number if applicable and original
manufacturer. [0076] 2. Number and type of stones and carat weights
with grading.--This may have to be reevaluated by the entity
managing the site. [0077] 3. Karating an overall weight of the
piece (for jewelry items). [0078] 4. Dimensions of the piece.
[0079] 5. Any and all relevant information in terms of
certification as well as warranty that travels with the product.
[0080] 6. Any and all original packaging the product was received
in by the subscriber (e.g., a watch box, or in the case of crystal,
the padded shipping box with original vendors box).
[0081] Upon completion, the site will verify all of the above. If
an infraction occurs prior to posting the product to the site,
subscribers will be sent an e-mail or phone call informing them of
the error and requesting that they make appropriate changes. Once
all obligations are met, the site will then post product for sale.
In other words, the site will make sure everything is correct prior
to web transmission of information to other subscribers 14 and the
general public.
[0082] Aspects of the process described above will be made through
the Web site 10. The means by which all obligations are covered is
through usual "box" fill in as most websites have. Pull down menus
can be provided for commonly used information. All necessary boxes
will have an asterisk, or be highlighted, for the user to fill in
appropriately.
[0083] Typical website procedures for purchasing product can be
implemented for use on the present site 10. Additionally,
subscribers can also maintain accounts with the site 10 that can be
debited or credited as appropriate. In this regard, payment will be
made at the time of purchase. Either the subscriber provides a
credit card number or the site will have access to the subscriber
account with the site.
[0084] Product will be made available and searchable in many ways
on the site 10. For example, each level or portion of the site can
be divided into various categories for product to purchase, such as
earrings and rings, necklaces, etc. The site 10 will also have
product for sale by manufacturer as well. All products will be able
to be purchased from various cross references to support various
styles of shopping.
[0085] Two shipping charges will be associated with purchased
product. The first is from the subscriber selling the product. This
is for shipment to managing entity for verification. The second is
from the managing entity to the buying subscriber. All of the
shipping costs, including proper insurance are to be split between
seller and buyer. The managing entity will negotiate a rate plan
with a major shipping company prior to beginning business. The
selling subscriber will receive from the site a shipping label via
the Internet to ship product to the managing entity
[0086] The selling subscriber must make product available for
shipment within a set time frame (e.g., 48 hours). The site will
notify the selling subscriber upon receiving a buy order on the
site.
[0087] The purchasing subscriber will have a set time (e.g., 48
hours) to notify the site of a rejection of product. The site will
provide guidelines outlining what the grounds are for rejection of
product to all subscribers.
[0088] Requests for merchandise made on the site, by either
subscriber or consumer, for a particular product will be filled by
the first responding vendor. No accommodations will be made for
other subscribers with the same product who do not respond in a
timely fashion. The site will also function as a "find a piece"
site for purchase. Requests can be "written" in a box describing
the piece. Description can be in the form of vendors name and
style/model number. A description can also be in generic terms. For
example, a request can be made for a strand of 18'' pearls in size
7.times.6.5 mm. Any and all request will be given to subscribers
and responses filtered to the party making the request.
[0089] The entity managing the site 10 will also perform other
functions. For example, the entity will be responsible for
marketing and advertising the site to the retailers and to the
general public. Additionally, the entity can be responsible for
purchasing an insurance policy covering all products while in
possession of the managing entity, and insuring all packages in
transit. The managing entity may also employ a Graduate Gemologist
to verify product.
[0090] While the specific embodiments have been illustrated and
described, numerous modifications come to mind without
significantly departing from the spirit of the invention, and the
scope of protection is only limited by the scope of the
accompanying Claims.
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