U.S. patent application number 14/331699 was filed with the patent office on 2014-11-06 for systems and methods for facilitating a transaction by matching seller information and buyer information.
The applicant listed for this patent is INVENTOR HOLDINGS, LLC. Invention is credited to ROBERT J. ANDERSON, JOHN C. CAINE, MICHIKO KOBAYASHI-EDWARDS, ANDREW S. VAN LUCHENE, KATHLEEN M. VAN LUCHENE BENNETT, RONALD E. ZEPP.
Application Number | 20140330661 14/331699 |
Document ID | / |
Family ID | 36972205 |
Filed Date | 2014-11-06 |
United States Patent
Application |
20140330661 |
Kind Code |
A1 |
VAN LUCHENE; ANDREW S. ; et
al. |
November 6, 2014 |
Systems and Methods for Facilitating a Transaction by Matching
Seller Information and Buyer Information
Abstract
Systems and methods are provided to facilitate a transaction
between a seller and a buyer. According to one embodiment, seller
offer information is received at a controller. The seller offer
information is associated with an item, such as a secondary market
item, being offered for sale by a seller. Buyer offer information,
associated with a buyer offering to make a purchase, is also
received. An evaluation rule is determined, and the seller offer
information and the buyer offer information are matched based on
the evaluation rule. It is then arranged for the seller to sell the
item to the buyer.
Inventors: |
VAN LUCHENE; ANDREW S.;
(SANTA FE, NM) ; CAINE; JOHN C.; (IVORYTON,
CT) ; VAN LUCHENE BENNETT; KATHLEEN M.; (EDMONDS,
WA) ; KOBAYASHI-EDWARDS; MICHIKO; (STAMFORD, CT)
; ZEPP; RONALD E.; (WINSTON, GA) ; ANDERSON;
ROBERT J.; (SMYRNA, GA) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
INVENTOR HOLDINGS, LLC |
Stamford |
CT |
US |
|
|
Family ID: |
36972205 |
Appl. No.: |
14/331699 |
Filed: |
July 15, 2014 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13784443 |
Mar 4, 2013 |
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14331699 |
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13248072 |
Sep 29, 2011 |
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13784443 |
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11746696 |
May 10, 2007 |
8046265 |
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13248072 |
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09586742 |
Jun 5, 2000 |
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11746696 |
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60176158 |
Jan 14, 2000 |
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Current U.S.
Class: |
705/26.2 |
Current CPC
Class: |
G06Q 30/0605 20130101;
G06Q 30/0613 20130101; G06Q 30/08 20130101; G06Q 40/04 20130101;
G06Q 20/10 20130101; G06Q 30/0633 20130101; G06Q 30/0601
20130101 |
Class at
Publication: |
705/26.2 |
International
Class: |
G06Q 30/06 20060101
G06Q030/06 |
Claims
1. A consumer-to-consumer transaction method, comprising:
receiving, by a processing device, buyer information indicative of
a product desired to be purchased by a first consumer, wherein the
buyer information is indicative of a desired category and a desired
quality score of the desired product; determining, by the
processing device, seller information indicative of a plurality of
products offered for sale by a plurality of second consumers,
wherein the seller information is indicative of a category and a
quality score for each product of the plurality of products;
determining, by the processing device and based on the desired
category and quality score, that no match between the desired
product and one of the plurality of products offered for sale by a
corresponding one of the second consumers from the plurality of
second consumers can be made; determining, by the processing
device, at least one of the desired category and the desired
quality score that cannot be matched with the seller information;
and transmitting, by the processing device and to at least one of
(i) the first consumer and (ii) at least one consumer of the
plurality of second consumers, a suggestion describing an
adjustment to the determined unmatched at least one of the category
and the quality score.
2. The method of claim 1, further comprising: offering, by the
processing device, an incentive for an adjustment of the determined
unmatched at least one of the category and the quality score.
3. The method of claim 1, wherein the buyer information is further
indicative of a buyer price.
4. The method of claim 3, further comprising: determining, by the
processing device, that the buyer price is within a predetermined
range; and providing, by the processing device and in response to
the determining that the buyer price is within the predetermined
range, a benefit to the first consumer.
5. The method of claim 4, wherein the benefit comprises a free
warranty.
6. The method of claim 1, wherein the seller information is further
indicative of a plurality of seller prices.
7. The method of claim 6, further comprising: determining, by the
processing device, that a subset of the seller prices are within a
predetermined range; and providing, by the processing device and in
response to the determining that the subset of seller prices are
within the predetermined range, a benefit to a corresponding subset
of the plurality of second consumers.
8. A system, comprising: a processing device; and a memory device
in communication with the processing device, the memory device
storing instructions that when executed by the processing device
result in: receiving buyer information indicative of a product
desired to be purchased by a first consumer, wherein the buyer
information is indicative of a desired category and a desired
quality score of the desired product; determining seller
information indicative of a plurality of products offered for sale
by a plurality of second consumers, wherein the seller information
is indicative of a category and a quality score for each product of
the plurality of products; determining, and based on the desired
category and quality score, that no match between the desired
product and one of the plurality of products offered for sale by a
corresponding one of the second consumers from the plurality of
second consumers can be made; determining at least one of the
desired category and the desired quality score that cannot be
matched with the seller information; and transmitting, to at least
one of (i) the first consumer and (ii) at least one consumer of the
plurality of second consumers, a suggestion describing an
adjustment to the determined unmatched at least one of the category
and the quality score.
9. The system of claim 8, wherein the instructions, when executed
by the processing device, further result in: offering an incentive
for an adjustment of the determined unmatched at least one of the
category and the quality score.
10. The system of claim 8, wherein the buyer information is further
indicative of a buyer price.
11. The system of claim 10, wherein the instructions, when executed
by the processing device, further result in: determining that the
buyer price is within a predetermined range; and providing, in
response to the determining that the buyer price is within the
predetermined range, a benefit to the first consumer.
12. The system of claim 11, wherein the benefit comprises a free
warranty.
13. The system of claim 8, wherein the seller information is
further indicative of a plurality of seller prices.
14. The system of claim 13, wherein the instructions, when executed
by the processing device, further result in: determining that a
subset of the seller prices are within a predetermined range; and
providing, in response to the determining that the subset of seller
prices are within the predetermined range, a benefit to a
corresponding subset of the plurality of second consumers.
15. A non-transitory computer-readable medium storing instructions
that when executed by a processing device result in: receiving
buyer information indicative of a product desired to be purchased
by a first consumer, wherein the buyer information is indicative of
a desired category and a desired quality score of the desired
product; determining seller information indicative of a plurality
of products offered for sale by a plurality of second consumers,
wherein the seller information is indicative of a category and a
quality score for each product of the plurality of products;
determining, based on the desired category and quality score, a
match between the desired product and one of the plurality of
products offered for sale by a corresponding one of the second
consumers from the plurality of second consumers; determining,
based on the desired category and quality score, that no match
between the desired product and one of the plurality of products
offered for sale by a corresponding one of the second consumers
from the plurality of second consumers can be made; determining at
least one of the desired category and the desired quality score
that cannot be matched with the seller information; and
transmitting, to at least one of (i) the first consumer and (ii) at
least one consumer of the plurality of second consumers, a
suggestion describing an adjustment to the determined unmatched at
least one of the category and the quality score.
16. The non-transitory computer-readable medium of claim 15,
wherein the instructions, when executed by the processing device,
further result in: offering an incentive for an adjustment of the
determined unmatched at least one of the category and the quality
score.
17. The non-transitory computer-readable medium of claim 15,
wherein the buyer information is further indicative of a buyer
price.
18. The non-transitory computer-readable medium of claim 17,
wherein the instructions, when executed by the processing device,
further result in: determining that the buyer price is within a
predetermined range; and providing, in response to the determining
that the buyer price is within the predetermined range, a benefit
to the first consumer.
19. The non-transitory computer-readable medium of claim 18,
wherein the benefit comprises a free warranty.
20. The non-transitory computer-readable medium of claim 15,
wherein the seller information is further indicative of a plurality
of seller prices.
21. The non-transitory computer-readable medium of claim 20,
wherein the instructions, when executed by the processing device,
further result in: determining that a subset of the seller prices
are within a predetermined range; and providing, in response to the
determining that the subset of seller prices are within the
predetermined range, a benefit to a corresponding subset of the
plurality of second consumers.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] The present application claims benefit and priority under 35
U.S.C. .sctn.120 to, and is a divisional of, U.S. patent
application Ser. No. 13/784,443 filed Mar. 4, 2013 and titled
"Systems and Methods For Facilitating a Transaction by Matching
Seller Information and Buyer Information", which is a divisional of
U.S. patent application Ser. No. 13/248,072 filed Sep. 29, 2011 and
titled "Systems and Methods For Facilitating a Transaction by
Matching Seller Information and Buyer Information", now abandoned,
which itself is a divisional of U.S. patent application Ser. No.
11/746,696 filed May 10, 2007, and issued as U.S. Pat. No.
8,046,265 on Oct. 21, 2011, which is further a continuation of U.S.
patent application Ser. No. 09/586,742 filed Jun. 5, 2000, now
abandoned, which further claims the benefit of U.S. Provisional
Patent Application No. 60/176,158 filed Jan. 14, 2000. The entire
content of these applications are hereby incorporated by reference
herein.
[0002] The present application is related to U.S. patent
application Ser. No. 08/964,967 entitled "Conditional Purchase
Offer (CPO) Management System for Collectibles", filed Nov. 5, 1997
and issued as U.S. Pat. No. 6,108,639 on Aug. 22, 2000, which is a
continuation-in-part of U.S. patent application Ser. No. 08/889,319
entitled "Conditional Purchase Offer Management System", filed Jul.
8, 1998 and issued as U.S. Pat. No. 6,085,169 on Jul. 4, 2000,
which is a continuation-in-part of U.S. patent application Ser. No.
08/707,660 entitled "Method and Apparatus for a Cryptographically
Assisted Commercial Network System Designed to Facilitate
Buyer-Driven Conditional Purchase Offers," filed on Sep. 4, 1996
and issued as U.S. Pat. No. 5,794,207 on Aug. 11, 1998; U.S. patent
application Ser. No. 09/282,747 entitled "Method and Apparatus for
Providing Cross-Benefits Based on a Customer Activity", filed Mar.
31, 1999; U.S. patent application Ser. No. 09/274,281 entitled
"Method and Apparatus for Providing Cross-Benefits via a Central
Authority", filed Mar. 22, 1999; and U.S. patent application Ser.
No. 09/322,351 entitled "Method and Apparatus for Providing Cross
Benefits and Penalties", filed May 28, 1999; U.S. patent
application Ser. No. 09/100,684 entitled "Billing Statement
Customer Acquisition System", filed May 19, 1999 and issued as U.S.
Pat. No. 6,898,570 on May 24, 2005, which is a continuation-in-part
of U.S. patent application Ser. No. 08/982,149 entitled "Method and
Apparatus for Printing a Billing Statement to Provide Supplementary
Product Sales", filed Dec. 1, 1997 and issued as U.S. Pat. No.
5,939,483 on Aug. 17, 1999. The entire content of these
applications are incorporated herein by reference.
FIELD OF THE INVENTION
[0003] The present invention relates to commerce. In particular,
the present invention relates to systems and methods for
facilitating a transaction between a seller and a buyer.
BACKGROUND OF THE INVENTION
[0004] Many consumers are interested in selling items. A consumer
may, for example, be interested in selling a used or second-hand
item (i.e., a "secondary market" item) that he or she owns but no
longer uses. Consumer electronics, exercise equipment, automobiles
and collectibles (e.g., coins or stamps) are some examples of such
secondary market items. Similarly, a consumer may be interested in
selling, for example, a theater or concert ticket that he or she
will not be able to use.
[0005] One way for a consumer to sell an item is through a merchant
who in turn re-sells the item to another consumer. Such a merchant,
however, will want to profit from the transaction, or at least pay
for overhead associated with the transaction (e.g., employee
salaries, rent, insurance). As a result, an item price the consumer
may receive from the merchant in exchange for selling the item is
generally less than an item price another consumer will be willing
to provide to the merchant in exchange for the item.
[0006] Moreover, a merchant who deals with a large number of
consumers may not be flexible with respect to one or more
transaction terms. For example, the merchant may insist that every
consumer bring his or her items directly to the merchant. A
consumer may, however, prefer that a buyer pick-up an item from his
or her home. For example, a consumer may prefer that a buyer
pick-up a heavy and bulky piece of exercise equipment. Another
consumer may prefer to meet a buyer at a mutually convenient
location to complete a transaction (e.g., to maintain his or her
anonymity). It will typically not be practical for a merchant to
individually negotiate delivery terms, or other transaction terms,
with each consumer.
[0007] Another problem with selling an item to a merchant is that a
consumer may not be able to determine a reasonable price for the
item. That is, a merchant will typically set the item price, and
the consumer may have no way of knowing if the merchant's item
price is reasonable. Although the consumer could bring the item to
a number of different merchants to determine a reasonable price
(e.g., by comparing item prices set by different merchants), such a
solution would be inconvenient and time consuming.
[0008] In addition to selling items, many consumers are interested
in purchasing items, such as secondary market items. Purchasing
such items from merchants, however, may involve the same
disadvantages as described above with respect to the sale of such
items. Namely, a merchant may increase an item price and may not be
flexible with respect to transaction terms. Moreover, a merchant
typically determines an item price, and a consumer interested in
purchasing the item may not be able to determine if the item price
is reasonable.
[0009] As a result of these disadvantages, many consumers are
interested in completing transactions directly with other
consumers. Because no third party needs to make a profit, or pay
for overhead, both the seller and the buyer can often benefit from
such a direct "consumer-to-consumer" transaction. Moreover, both
consumers can work together to decide on agreeable terms for the
transaction, such as a mutually convenient delivery location.
[0010] To help facilitate consumer-to-consumer transactions,
"on-line" services that communicate with a large number of sellers
and buyers, such as a World Wide Web site provided via the
Internet, have become increasingly popular.
[0011] In a classified advertisement, or "classifieds," type of
on-line service, a seller can advertise an item to be sold at a
particular price. When a buyer agrees to purchase the item at that
price, the item is sold to the buyer. The advertisement may
include, for example, a description of the item and an item price.
A buyer can similarly advertise that he or she is interested in
purchasing a particular type of item.
[0012] In an "auction" type of on-line service, a seller posts an
item to be sold by auction. A post for an auction may include, for
example, an item description but not an item price. A number of
buyers may submit bids for that item, and the item is sold to the
bidder that submits the highest bid. Such an auction type of
on-line service can also let a seller set a "floor price" for the
item. That is, the item will not be sold below the floor price even
if no higher bids are submitted.
[0013] In addition to the classifieds and auction types of
services, U.S. patent application Ser. No. 08/964,967, entitled
"Conditional Purchase Offer (CPO) Management System for
Collectibles," discloses a system wherein a CPO management system
receives a Conditional Purchase Offer (CPO) from a buyer. The
buyer's CPO is a binding offer containing one or more conditions
submitted by a buyer for the purchase of an item at a buyer-defined
price. The CPO management system then determines whether one or
more sellers are willing to accept the buyer's CPO. If a seller
accepts the buyer's CPO, and ultimately delivers an item complying
with the conditions, the buyer is bound to provide payment of the
buyer-defined price. The buyer's CPO may be guaranteed, for
example, by a credit card account. In this way, a "race" between
sellers results (i.e., the sellers compete to accept a buyer's CPO
with a reasonable buyer-defined price).
[0014] With the consumer-to-consumer services described above,
however, it may be difficult for a buyer and a seller to complete a
transaction. For example, although a buyer may be able to determine
that a seller is interested in selling a kitchen table, the buyer
may not be able to determine if the seller is willing to deliver
the table to a particular town. Similarly, a seller interested in
selling a camera with a tripod and a particular zoom ratio may need
to review information submitted by hundreds of buyers to determine
which buyers are interested in purchasing a camera with these
qualifications. It may be especially difficult for sellers and
buyers to complete a transaction with respect to secondary market
items, where the condition of an item can vary widely.
[0015] Moreover, problems exist with the ability of known
consumer-to-consumer services to match buyers and sellers. For
example, a seller may establish an unreasonable item price (e.g.,
an item price that is too high). Similarly, a buyer may submit an
item price that is too low. In other cases, a buyer may be unable
to pay, or a seller may be unable to accept, what he or she
realizes is a reasonable item price. Such gaps between an item
price a seller is willing to accept and an item price a buyer is
willing to pay reduces the number of transactions completed by such
services.
[0016] Another problem with known consumer-to-consumer services is
that a seller may initiate, but not complete, a transaction. For
example, a buyer may contact a seller who advertised that he or she
was interested in selling four tickets to a particular concert only
to find out that the seller had already sold the tickets to someone
else. Similarly, a seller may back-out of a transaction for any
number of other reasons (e.g., if the seller and the buyer are
unable to agree on a transaction term, such as a delivery term). In
addition, buyers may also decide to not complete a transaction in
many consumer-to-consumer services.
[0017] Moreover, consumer-to-consumer services typically have only
a limited ability and/or flexibility to profit from a completed
transaction. For example, a consumer-to-consumer service may charge
a seller 5% of a sale price in exchange for facilitating a
transaction. The service, however, typically does not select a
particular buyer, or a particular seller, based on a resulting
profit to the service. Similarly, the service typically does not
select a buyer and/or seller based on other information associated
with the effectiveness of the service (e.g., a total number of
transactions that are completed by the service or demographic
characteristics associated with the seller and/or buyer).
[0018] Note that, businesses face many of the same problems
discussed above with respect to consumers. For example, a business
interested in selling items to, or purchasing items from,
consumers--or even a business interested in selling items to, or
purchasing items from, other businesses--may find it difficult to
complete a transaction.
[0019] Thus, a need exists for improved systems that facilitate
transactions between buyers and sellers.
SUMMARY OF THE INVENTION
[0020] To alleviate problems inherent in the prior art, the present
invention introduces systems and methods to facilitate a
transaction between a seller and a buyer.
[0021] According to one embodiment of the present invention, seller
offer information, associated with an item being offered for sale
by a seller, is received. Buyer offer information, associated with
a buyer offering to make a purchase, is also received. An
evaluation rule is determined and the seller offer information and
the buyer offer information are matched based on the evaluation
rule. It is then arranged for the seller to sell the item to the
buyer.
[0022] According to another embodiment, seller offer information,
associated with an item being offered for sale by a seller, is
received. An appropriate item price is determined based on the
seller offer information, and information associated with the
appropriate item price is transmitted to the seller. An actual
seller price is then determined. Similarly, an appropriate item
price may be determined based on buyer offer information, and an
actual buyer item price may be determined.
[0023] According to another embodiment, seller offer information,
associated with an item being offered for sale by a seller, is
received. Buyer offer information, associated with a buyer offering
to make a purchase, is also received. A subsidy is determined, the
subsidy being associated with a benefit from a subsidy provider to
be applied to the transaction. It is then arranged for the seller
to provide the item to the buyer in accordance with the
benefit.
[0024] According to another embodiment, a binding seller offer is
received, the binding seller offer being associated with an item
being offered for sale by a seller. A binding buyer offer is also
received, the binding buyer offer being associated with a buyer
offer to make a purchase. The binding seller offer is matched with
the binding buyer offer, and it is arranged for the seller to sell
the item to the buyer.
[0025] One embodiment of the present invention comprises: means for
receiving seller offer information associated with an item being
offered for sale by a seller; means for receiving buyer offer
information associated with a buyer offering to make a purchase;
means for determining an evaluation rule; means for matching the
seller offer information and the buyer offer information based on
the evaluation rule; and means for arranging for the seller to sell
the item to the buyer.
[0026] Another embodiment comprises: means for receiving seller
offer information associated with an item being offered for sale by
a seller; means for determining an appropriate item price based on
the seller offer information; means for transmitting information
associated with the appropriate item price to the seller; and means
for determining an actual seller price.
[0027] Another embodiment comprises: means for receiving seller
offer information associated with an item being offered for sale by
a seller; means for receiving buyer offer information associated
with a buyer offering to make a purchase; means for determining a
subsidy, the subsidy being associated with a benefit from a subsidy
provider to be applied to the transaction; and means for arranging
for the seller to provide the item to the buyer in accordance with
the benefit.
[0028] Another embodiment comprises: means for receiving a binding
seller offer associated with an item being offered for sale by a
seller; means for receiving a binding buyer offer associated with a
buyer offering to make a purchase; means for matching the binding
seller offer with the binding buyer offer; and means for arranging
for the seller to sell the item to the buyer.
[0029] With these and other advantages and features of the
invention that will become hereinafter apparent, the nature of the
invention may be more clearly understood by reference to the
following detailed description of the invention, the appended
claims and the several drawings attached herein.
BRIEF DESCRIPTION OF THE DRAWINGS
[0030] FIG. 1 is a block diagram overview of a transaction system
according to an embodiment of the present invention.
[0031] FIG. 2 is a block diagram of a controller according to an
embodiment of the present invention.
[0032] FIG. 3 is a tabular representation of a portion of a buyer
database according to an embodiment of the present invention.
[0033] FIG. 4 is a tabular representation of a portion of a seller
database according to an embodiment of the present invention.
[0034] FIG. 5 is a tabular representation of a portion of an offer
to buy database according to an embodiment of the present
invention.
[0035] FIG. 6 is a tabular representation of a portion of an offer
to sell database according to an embodiment of the present
invention.
[0036] FIG. 7 is a tabular representation of a portion of an item
category database according to an embodiment of the present
invention.
[0037] FIG. 8 is a tabular representation of a record of a quality
class database according to an embodiment of the present
invention.
[0038] FIG. 9 is a tabular representation of a portion of a
matching objectives database according to an embodiment of the
present invention.
[0039] FIG. 10 is a tabular representation of a record of a rule
database according to an embodiment of the present invention.
[0040] FIG. 11 is a tabular representation of a portion of a
subsidy rules database according to an embodiment of the present
invention.
[0041] FIG. 12 is a tabular representation of a portion of a
subsidy database according to an embodiment of the present
invention.
[0042] FIG. 13 is a tabular representation of a portion of a
transaction database according to an embodiment of the present
invention.
[0043] FIG. 14 is a flow chart of a method according to an
embodiment of the present invention.
[0044] FIG. 15 is a flow chart of a method according to another
embodiment of the present invention.
[0045] FIG. 16 is a flow chart of a method according to another
embodiment of the present invention.
[0046] FIG. 17 is a flow chart of a matching method according to an
embodiment of the present invention.
[0047] FIG. 18A is a flow chart of an offer to buy method according
to an embodiment of the present invention.
[0048] FIG. 18B is a flow chart of an offer to sell method
according to an embodiment of the present invention.
[0049] FIG. 19 is a flow chart of a matching method according to an
embodiment of the present invention.
[0050] FIGS. 20A through 20C are a flow chart of a subsidy method
according to an embodiment of the present invention.
[0051] FIG. 21 is a flow chart of a matching objective method
according to an embodiment of the present invention.
[0052] FIG. 22 is a flow chart of a timed-release method according
to an embodiment of the present invention.
[0053] FIG. 23 is a flow chart of a method for arranging a sale of
a secondary market item in accordance with an embodiment of the
present invention.
DETAILED DESCRIPTION OF THE INVENTION
[0054] The present invention is directed to systems and methods for
facilitating a transaction between a seller and a buyer. According
to one embodiment, a controller receives seller offer information,
such as an Offer To Sell (OTS), from a seller. The seller may be,
for example, an individual or business who is interested in selling
an item. The item may be, by way of example, any product or
service, such as a secondary market item, computer software, a
ticket, a future product, a hotel room reservation, or a gift
certificate. The OTS may include, for example, a seller price and
information describing the item.
[0055] The controller also receives buyer offer information, such
as an Offer To Buy (OTB), from a buyer. The buyer may be, for
example, an individual or business who is interested in making a
purchase. For example, the buyer may be interested in purchasing an
item or purchasing a right to an item (e.g., renting or licensing
the item). The OTB may include, for example, a buyer price and an
item category (e.g., medium screen televisions or 35 mm
cameras).
[0056] The controller "matches" the OTS and the OTB based on an
evaluation rule (e.g., determines that the OTS satisfies the OTB
and the OTB satisfies the OTS), and arranges for the seller to sell
the item to the buyer. An OTB may be matched with an OTS based on,
for example, the item category associated with the OTB, the
information describing the item associated with the OTS, the buyer
price, and the seller price. As used herein, a matching offer may
be an OTS that matches an OTB or an OTB that matches an OTS.
[0057] Referring in detail to the drawings, FIG. 1 is a block
diagram overview of a transaction system 100 according to one
embodiment of the present invention. The transaction system 100
includes seller devices 10 and buyer devices 20 in communication
with a controller 200. As used herein, devices (such as the seller
devices 10, the buyer devices 20, the controller 200 and/or a
subsidy provider device 30) may communicate, for example, via a
communication network, such as a Local Area Network (LAN), a
Metropolitan Area Network (MAN), a Wide Area Network (WAN), a
Public Switched Telephone Network (PSTN), or an Internet Protocol
(IP) network such as the Internet, an intranet or an extranet.
Moreover, as used herein, communications include those enabled by
wired and/or wireless technology.
[0058] Note that the seller devices 10 and the buyer devices 20 may
not be in constant communication with the controller 200. For
example, a seller device 10 may only communicate with the
controller 200 when a seller accesses a Web site associated with
the controller 200. Although embodiments of the present invention
are described with respect to information exchanged via a Web site,
according to other embodiments information can instead be exchanged
via, for example: a telephone, an Interactive Voice Response Unit
(IVRU), a facsimile machine, regular mail, electronic mail, a
WEBTV.RTM. interface, an Automated Teller Machine (ATM), a cable
network interface, or a wireless communication system.
[0059] In general, the controller 200 and the subsidy provider
device 30 can be any device capable of performing methods in
accordance with the present invention. For example, the controller
200 may be a Web server. The seller device 10 and/or the buyer
device 20 may be, for example: a Personal Computer (PC), a portable
computing device such as a Personal Digital Assistant (PDA), a
wired or wireless telephone, a one-way or two-way pager, a kiosk,
an ATM, a smart card, a magnetic stripe card, or any other
appropriate communication or storage device.
[0060] Note that the seller devices 10 and/or the buyer devices 20
may include a number of different types of devices (e.g., some
buyers may use PCs while others use telephones). Also note that any
of the seller devices 10, the buyer devices 20, the subsidy
provider device 30 and/or the controller 200 may be incorporated in
a single device (e.g., a kiosk may serve as a seller device 10, a
buyer device 20 and a controller 200).
[0061] According to an embodiment of the present invention, the
controller 200 may receive an offer, including offer information, a
seller device 10 or a buyer device 20. As used herein, an "offer"
may mean either an OTB or an OTS and is not limited to the legal
definition of an offer (i.e., an offer may include a communication
that will not result in a binding contract when accepted). The
controller 200 generates a matching code for the offer based on the
offer information. Typically, the offer information associated with
an OTB is "broad" (e.g., only an item category is provided) and the
offer information associated with an OTS is "specific" (e.g., a
seller describes in detail a particular item he or she is
interested in selling). The matching code is used by the controller
200 to find a matching offer.
[0062] According to one embodiment, the controller 200 stores
indications of "quality classes" which indicate various levels of
item quality. For example, the controller 200 may use the offer
information to assign a quality score (e.g., a score indicating
that the item has four out of five desirable features) and, based
on the quality score, assign the offer to a particular quality
class. The quality class may, for example, enable the controller
200 to find a matching offer with a comparable quality.
[0063] Determining a quality class also enables the controller 200
to determine and suggest an appropriate item price (e.g., $50) or
item price range (e.g., $45 to $55) for an offer. For example, the
controller 200 may retrieve an appropriate item price range
associated with a quality class and transmit an indication of the
appropriate item price range to the buyer or seller associated with
the offer. The buyer or seller may select an appropriate item price
or item price range, or enter his or her own item price.
[0064] According to one embodiment, the controller 200 matches an
OTS and an OTB by searching for matching offer codes. The search
may be performed, for example, when a new OTS is received, when a
new OTB is received, and/or on a periodic (e.g., every hour) or
non-periodic basis. The controller 200 may then, according to one
embodiment, retrieve the item price associated with each
potentially matching offer. When searching for a match for an OTS,
the controller 200 may eliminate a potentially matching OTB if an
item price associated with the OTB (e.g., a maximum buyer price) is
lower than an item price associated with the OTS (e.g., a minimum
seller price). Similarly, when searching for a match for an OTB,
the controller 200 may eliminate a potentially matching OTS if an
item price associated with the OTS is higher than an item buyer
price associated with the OTB.
[0065] If the controller 200 determines that a matching offer
cannot be found, the controller 200 may, according to one
embodiment, calculate a subsidy amount that would need to be added
to (or subtracted from) an offer price in order to find at least
one matching offer. For example, consider an OTS associated with a
seller price of $100. The controller 200 may determine that a first
OTB associated with a buyer price of $50 and a second OTB
associated with a buyer price of $80 potentially match the OTS
(e.g., each OTB is associated with an item category that matches
the item associated with the OTS). In this case, the controller 200
may determine that a subsidy of $20 (i.e., $100-$80) would enable
the second OTB to match the OTS. Note that the $20 may either be
added to the OTB or subtracted from the OTS. When the subsidy is
provided by a third party (e.g., a party other than the controller
200, the buyer and/or the seller), the controller 200 may
communicate with the subsidy provider device 30 to determine if the
subsidy may be offered to the buyer or the seller (e.g., in
exchange for the buyer and/or the seller performing a task).
[0066] According to an embodiment of the present invention, if more
than one matching offer exists based on matching codes and item
prices, the controller 200 retrieves a matching objective in order
to select a matching offer. The matching objective may be, for
example, any rule or set of rules the controller 200 can use to
select a matching offer. For example, different matching objectives
may be arranged into a hierarchy and applied (e.g., to eliminate
potentially matching offers) until a single matching offer remains.
The hierarchy may be adjusted, for example, manually by an operator
of the controller 200 or automatically based on historical, current
or predicted data. Once a single matching offer is found, the
controller 200 may, according to an embodiment of the present
invention, automatically "bind" the offers (i.e., associate the
seller's OTS with the buyer's OTB) and notify the seller and buyer
of the completed match. According to one embodiment of the present
invention, the controller 200 also arranges for the seller to sell
the item to the buyer.
[0067] Note that a seller device 10 and/or a buyer device 20 may
also communicate directly with the subsidy provider device 30 (as
shown by a dashed line in FIG. 1). For example, a subsidy provider
may offer to contribute an amount that will enable an OTS to match
with an OTB if both the seller and the buyer apply for a new credit
card. In this case, the credit card application information (e.g.,
the customer's name, address and Social Security number) may be
transmitted directly from the seller device 10 and the buyer device
20 to the subsidy provider device 30. Similarly, information about
available subsidy offers may be transmitted directly from the
subsidy provider device 30 to one or more seller devices 10 and/or
buyer devices 20.
[0068] Note that although a single subsidy provider device 30 is
shown in FIG. 1, any number of subsidy provider devices 30 may be
included in the transaction system 100. Similarly, any number of
the other devices described herein may be included according to
embodiments of the present invention (e.g., a number of controllers
may operate together).
Transaction Examples
[0069] Several transaction examples will now be described to
illustrate how the transaction system 100 may be used according to
various embodiments of the present invention. Although some
examples are described with respect to an OTB submitted by a buyer,
it will be understood by those skilled in the art that similar
examples may involve an OTS submitted by a seller.
[0070] Consider a buyer who is interested in purchasing an item.
The controller 200 may receive buyer offer information, such as
buyer registration information (e.g., submitted when the buyer
registered to use the controller 200) and/or an OTB, from a buyer
device 20. The buyer offer information may be used, for example, to
generate a matching code for the OTB.
[0071] The controller 200 may receive the buyer offer information,
for example, after leading the buyer through a series of questions
(e.g., pull-down menus displayed via a Web site) to define an item
category (e.g., exercise equipment), a condition of the item (e.g.,
mint, good, or fair), and the age of the item.
[0072] The controller 200 may also prompt the buyer to enter a
general description of the item he or she is interested in
purchasing. For example, the buyer may supply a brand name, a
manufacturer, and model number of a particular item her or she is
interested in purchasing (or of a representative item). In this
case, the controller 200 may categorize the description for the
buyer.
[0073] The controller 200 may also determine a quality class
associated with the buyer offer information. For example, the buyer
may select an item category, and the controller 200 may retrieve
and display quality classes associated with that category. A
quality class display may include, for example, a brief description
and an exemplary set of the manufacturers and models numbers within
the class. A quality class may also be associated with an
appropriate range of item prices.
[0074] The buyer may then select a quality class based on his or
her budget and expectations. According to an embodiment of the
present invention, by selecting a quality class the buyer agrees to
accept any item that falls within the quality class. The controller
200 may have predetermined matching codes associated with each
quality class.
[0075] In general, the buyer offer information will be broad, such
as an item category or a general description of the desired item,
including information (such as acceptable brands and features) that
will help the controller 200 determine a quality class. For
example, the buyer offer information may include one or more
product features or accessories that must be included with the
item.
[0076] The buyer offer information may also indicate acceptable
item price and feature trade-offs, mandatory item requirements, and
transaction preferences. For example, a buyer may be willing to
accept any video camera but prefers to receive a Video Home
System-Compact (VHS-C) video camera if one is available. Similarly,
a buyer may insist on purchasing an item from a student or a
charity.
[0077] In another example, the controller 200 may ask a buyer
"Would you accept a television without surround sound for $25 less
than your offer price?" or "Would you accept surround sound in
place of picture-in-picture capability?" The controller 200 may use
answers to these questions to locate a matching OTS. The controller
200 may also, according to one embodiment, submit a counter-offer
to the buyer if no OTS exactly matches one or more features
included in the OTB.
[0078] Such buyer offer information may be a valuable demand
collection tool and help a manufacturer determine a perceived value
of a feature. For example, if a buyer agrees to increase a buyer
price by $5 in exchange for a feature, the feature is worth about
$5 to that buyer. Similarly, if most buyers will not accept a
television with a remote control in exchange for an upgrade to a
higher quality class, but will accept a television without
picture-in-picture capability for such an upgrade, it can be
assumed that buyers consider a remote control more valuable than
picture-in-picture capability.
[0079] According to one embodiment, a buyer may rank a number of
features associated with an OTB. For example, a buyer may indicate
that one feature is "necessary" (i.e., a matching offer must have
the feature) and another is "desired." The controller 200 may use
these rankings to match offers, as well as to collect demand
information.
[0080] With respect to an OTS, the seller offer information will
typically be more specific. For example, the seller offer
information may indicate the manufacturer, model number, condition,
year, and color of an item. That is, the seller is describing a
particular item that is being offered for sale. For example, the
seller offer information may indicate that the seller is interested
in selling a "1993 SONY.RTM. WALKMAN.RTM., working condition."
[0081] In addition to information about a type of item or a
particular item, offer information (i.e., buyer offer information
or seller offer information) may include information about buyer or
seller. For example, offer information may include a name, an
address, contact information (e.g., an electronic mail address or
telephone number) and/or demographic information. The offer
information may also include a payment identifier (e.g., a credit
card number) that may be used by the controller 200 to collect
transaction fees from buyers and/or sellers. The payment identifier
may also be used to credit or debit an account as appropriate to
complete a transaction (e.g., an amount based on an item price).
According to one embodiment, such payments may be made over time in
installments.
[0082] The offer information may also include an offer price. That
is, an OTS may include a seller price. The seller price may
represent, for example, a seller asking price (e.g., an amount the
seller would like to receive) and/or a seller minimum price (e.g.,
an amount below which the seller would not sell an item).
Similarly, an OTB may include a buyer price (e.g., a buyer asking
price and/or a buyer maximum price).
[0083] The offer information may also include a time limit, such as
an offer period or expiration date. Such a time limit may be used,
for example, by the controller 200 to reduce the chance that an OTS
or an OTB will remain unmatched for an unreasonable amount of time
(e.g., when more than one potentially matching OTB is determined,
the controller 200 may select the OTB with the nearest expiration
date). According to other embodiments, the controller 200 may
determine a time limit or notify the seller or buyer when an offer
can be removed. The controller 200 may also use such a time limit
to anticipate supply and/or demand and more accurately manage an
offer "pipeline." For example, the controller 200 may wait to match
an OTB until after a holiday when fewer offers will be received. In
exchange, the buyer may receive an extended warranty period, a
higher quality item or a subsidy from the controller 200.
[0084] The offer information may also include delivery information,
such as a shipping preference. For example, a buyer may choose to
pick-up an item at a specific place or have the item shipped to his
or her home. In one embodiment the controller 200 displays a map,
which a buyer (or seller) can use to specify how far he or she is
willing to travel to pick-up (or deliver) an item.
[0085] During a transaction, the controller 200 may provide a
subsidy offer to a buyer (and/or a seller). For example, a subsidy
offer may be provided to a buyer when he or she initially registers
with the controller 200, when the buyer submits an OTB, when no
potentially matching OTS is located, or prior to an expiration date
associated with the OTB. For example, the buyer may receive a
message stating "Sign up for AT&T.RTM. long distance service,
and we'll advance you in our matching queue--you'll get a better
product in less time!" Several types of subsidy offers are
described in U.S. patent application Ser. No. 09/274,281 entitled
"Method and Apparatus for Providing Cross-Benefits via a Central
Authority." The buyer's response to the subsidy offer (e.g., an
acceptance) may be received and stored by the controller 200.
[0086] According to one embodiment, a reward, such as payment of an
award amount or the availability of a subsidy offer, may be
provided to a party based on the corresponding demand for his or
her offer. For example, consider a seller who submits an OTS for an
item. If a large number of offers to buy are currently pending (or
have historically been submitted) for that type of item (and/or at
the seller's price), a reward may be provided to the seller.
Similarly, a reward may be provided to a buyer who submits a
popular OTB. The reward may be predetermined or may be based on,
for example: supply information, demand information, the item
category, and/or the item price.
[0087] According to another embodiment, the controller 200 may
notify the buyer of an incentive available in exchange for
receiving information about newly introduced items (e.g.,
information about a new computer model when the buyer is offering
to purchase a computer), or a willingness to purchase a substitute
item or a supplemental item (e.g. a toner cartridge or a toner
cartridge subscription when the buyer is offering to purchase a
printer).
[0088] According to one embodiment, a seller's OTS and/or a buyer's
OTB may be "binding." That is, a penalty may be applied if the
seller and/or the buyer do not complete a transaction. For example,
the controller 200 may notify a buyer of a penalty (e.g., a
predetermined or variable penalty amount). A penalty may be
applied, for example, if the buyer fails to pick-up an item. The
controller 200 may similarly notify a seller of a penalty imposed,
for example, if he or she misrepresents the quality of an item sold
to a buyer.
[0089] According to one embodiment, an offer may be assigned a
priority ranking. For example, when more than one OTB is determined
to be a potentially matching offer, an OTB having the highest
priority ranking may be selected by the controller 200. Thus, a
higher priority ranking for an offer may, for example, enable an
OTB to be matched more quickly or with a more favorable OTS (e.g.
an OTS associated with a lower price and/or a higher quality
class).
[0090] A priority ranking may be determined, for example, initially
when a buyer submits an OTB. The priority ranking may also change
dynamically before the OTB is matched. According to one embodiment,
the controller 200 may allow a buyer to pay for an improved
priority ranking (either on an offer-by-offer basis or with respect
to all of the parties offers). For example, a buyer may receive a
message asking "Will you pay $2.00 to be given high priority in our
matching system?"
[0091] According to another embodiment, the priority ranking is
based on a measured desirability of the particular type of item
associated with the OTB. For example, if a large number of sellers
have offered, or are currently offering, to sell the same type of
item, the controller 200 may assign the a high priority ranking to
the OTB (e.g., because there is a large supply of that type of
item). Similarly, if a large number of buyers have been interested,
or are currently interested, in purchasing the same type of item,
the controller 200 may assign the a low priority ranking to the OTB
(e.g., because there is a large demand for that type of item).
[0092] A priority ranking may also be based on how long an offer
has remained unmatched and/or how close an offer is to an
expiration date. For example, as a buyer's OTB remains unmatched
the controller 200 may increase a priority ranking to expedite
matching. A priority ranking may also be based on delivery
information. For example, a buyer may receive a high priority
ranking if he or she is more flexible about where and when an item
may be delivered. A priority ranking may also be based on past
transactions between a buyer and the controller 200. For example,
the controller 200 may store "reputation" information based on
problems that have occurred in the past (e.g., failing to deliver
an item or provide a payment at an appropriate time). A priority
ranking for a newly registered buyer may start out high to
encourage the buyer to use the transaction system 100 in the
future.
[0093] A priority ranking may also be based on whether the buyer
has accepted a subsidy offer. That is, a buyer who accepts a
subsidy offer may receive a higher priority ranking because of his
or her acceptance. A priority ranking may also be based on whether
the buyer has submitted an appropriate buyer price with the OTB
(e.g., whether the buyer price is within an appropriate item price
range suggested by the controller 200).
[0094] The buyer information may include a quality class of the
item he or she is interested in purchasing. For example, the buyer
may indicate that he or she is interested in a purchasing a stereo
having a quality class of "better." According to another
embodiment, the controller 200 may determine a quality class based
on the buyer offer information (e.g., based on the particular
features the stereo must have). According to another embodiment, a
quality class may be predicted based on the buyer's past history
with the transaction system 100.
[0095] The quality classes may be organized based on, for example,
a number of features, item manufacturers, an item condition, and/or
accessories associated with an item. For example, the highest
quality class may have the most features, the most exclusive
manufacturers, at least a good item condition, and the most
accessories. In contrast, the lowest quality class may have the
fewest features, the most number of acceptable manufacturers, a
lower item condition, and fewer accessories.
[0096] The quality classes may be altered periodically based on
current data (e.g., a previously desirable feature becomes obsolete
and an item with such a feature is moved to a lower quality class).
For example, when an OTB is received, the controller 200 may assign
a "score" to the OTB based on the item description provided by the
buyer. The buyer may submit, for example, an item category, a
minimum acceptable condition, one or more acceptable brands, and
desired features and accessories. Based on the description, the
controller 200 can score the OTB and, based on the score, determine
an appropriate quality class.
[0097] Note that an OTB may fall into more than one quality class.
For example, an OTB may be assigned to both a "better" and a "best"
class. That is, the best class may simply be a subset of the better
class.
[0098] According to an embodiment of the present invention, the
controller 200 retrieves an appropriate item price range associated
with a quality class and outputs the range to the buyer device 20.
The appropriate item price range may, for example, help a buyer
select a buyer price to include in his or her OTB. The appropriate
item price range may be determined based on, for example,
historical, current or predicted data and may be adjusted by the
controller 200 when appropriate. According to one embodiment, the
buyer is free to determine any buyer price (e.g., including a buyer
price outside of the range suggested by the controller 200). In
another embodiment, the buyer price must be within the appropriate
item price range. Note that an appropriate item price range for a
quality class may be different for an OTB and an OTS.
[0099] For example, consider a buyer who is interested in
purchasing a television. The controller 200 displays a list of
television features and brands to the buyer. The buyer selects
"color," "remote control," and "picture-in-picture capability" as
desired features and indicates that he or she is willing to accept
televisions made by "all manufacturers." The controller 200
determines that the buyer's selected features are associated with
both a "good" and a "better" quality class, but not a "best"
quality class (which has a more limited selection of
manufacturers). The controller 200 assigns the OTB to the "better"
quality class and displays an appropriate item price range of
$150-$250 to the buyer. The buyer may either select a buyer price
within the appropriate item price range, or name a different
price.
[0100] Based on the compatibility of offer codes and offer price,
the controller 200 attempts to retrieve and match at least one
matching OTS to the OTB. For example, the controller 200 may search
for all matching OTS codes compatible with the OTB matching code
(e.g., a potentially matching OTS has at least the features
described by the OTB). That is, an OTS that matches the OTB item
category (e.g., "television") but does not match the required
features (e.g., "at least a 27 inch screen") or quality class
(e.g., "better") of the OTB is eliminated from the search.
[0101] The controller 200 also eliminates an OTS if the seller
price exceeds the buyer price associated with the OTB. If the OTB
is associated with both an asking price and a maximum price, the
controller 200 may decide to base the search on either price. This
decision may be based on, for example, whether the controller 200
is interesting in improving a benefit associated the buyer (i.e.,
by matching his or her asking price), or whether the controller 200
is interested in completing transactions (i.e., by matching the
buyer's maximum price).
[0102] If the controller 200 does not find a matching OTS, the OTB
may be stored in a database and the controller 200 may attempt to
find a match for the OTB again later. According to another
embodiment, the OTB is simply rejected if the controller 200 does
not initially find a matching OTS.
[0103] According to one embodiment, if a single matching OTS is
found, the controller 200 automatically binds the OTB and the
matching OTS. According to another embodiment, the controller 200
may not automatically bind an OTB with an OTS when a single
potentially matching OTS is found (e.g., the controller may wait
two days to determine if another potentially matching OTS is
submitted).
[0104] Consider, for example, a buyer who submits an OTB for a
television with an asking price of $100 and a maximum price $125.
The controller 200 receives the OTB, generates a matching code,
assigns it to a "better" quality class, and searches for an OTS
with a similar (or identical) matching code. The controller 200
also eliminates an OTS if it has a minimum price higher than $100.
If a single matching OTS remains after this elimination, the
controller 200 automatically binds that OTS and the OTB and
completes the transaction. If no matching OTS remains, the
controller 200 searches for an OTS with a similar (or identical)
matching code and a minimum price less than $125. If one such OTS
is found, the controller 200 automatically binds the matching OTS
and the OTB. If there is more than one matching OTS, the controller
200 may use matching objectives to select an OTS as described
herein.
[0105] According to one embodiment of the present invention, the
controller 200 calculates and adds a subsidy amount to an OTB
and/or an OTS in order to find a matching offer. For example, the
controller 200 may fund a special account or budget to subsidize
offers and increase the number of successful matches. The
controller 200 may set a maximum amount to subsidize each offer, or
use subsidy rules to determine an amount. The controller 200 may,
for example, add the subsidy amount to the OTB and search for a
matching OTS.
[0106] If a matching OTS is found, the controller 200 determines if
there is a discrepancy between the seller price and the buyer price
adjusted by the subsidy amount. In other words, the controller 200
calculates [(buyer price+subsidy amount)-seller price], which
represents a surplus amount of money. The surplus may be, for
example, kept by the controller 200 (e.g., as profit or to be used
with respect to another OTS or OTB) or passed onto the seller
and/or buyer.
[0107] In another embodiment, the controller 200 may find the
closest matching offer and determine a subsidy amount needed to
complete that match. If it is equal to or less than a predetermined
amount (or percentage), the controller 200 may automatically add
the subsidy to the offer and complete the match.
[0108] Consider, for example, a controller 200 that receives an OTB
including a buyer price of $100. Although at least one OTS matches
based on the matching code, no OTS has a seller price of $100 or
less. The controller 200 retrieves subsidy rules and determines
that the OTB can be subsidized for up to 20% of the buyer price.
The controller 200 adds $20 to the buyer price and again attempts
to find a matching OTS. The controller 200 now finds a matching OTS
with a seller price of $115. The controller 200 automatically binds
both the OTB and the matching OTS, and determines that the extra
money (i.e. $5) is passed on to the seller.
[0109] In one embodiment, the controller 200 receives an OTB or OTS
and calculates and presents an offer to finance the transaction.
Offering to finance a purchase in this way may enable the
controller 200 to complete more transactions, as well as earn a
profit on the interest earned by the finance offer. One or more
subsidies may also be calculated and included in the finance
offer.
[0110] According to one embodiment of the present invention, the
controller 200 uses one or more matching objectives to select a
single offer from a group of potentially matching offers. The
matching objectives may represent, for example, one or more goals
of the controller 200. The matching objectives may be a hierarchy
of rules that are applied until a single matching offer remains.
According to one embodiment, the matching objectives are
predetermined and/or are periodically re-organized (e.g.,
automatically by the controller 200 or manually by an operator)
depending on objectives of the controller 200 (e.g., increasing a
profit or increasing a number of completed transactions).
[0111] In one embodiment, the controller 200 changes the hierarchy
of the rules after a predetermined number of transactions have
taken place (e.g. after accumulating a statistically significant
sample pool) and determines which matches are more beneficial
(e.g., increase profit, reduce customer service complaints, or
increase the number of completed transactions). Note that the
matching objectives may be the same, or may be different, with
respect to an OTB and an OTS.
[0112] A matching objectives rule may be based on, for example,
priority rankings associated with a buyer and/or a seller. For
example, an offer with higher priority ranking may match more
quickly, or more beneficially, than an offer with a lower priority
ranking. In this case, if an OTB is received with a high buyer
price, an OTS with a higher priority ranking may be selected by the
controller 200.
[0113] A matching objectives rule may also be based on an item
price. For example, the controller 200 may periodically determine
which price among several is "optimal" for matching. That is, if
there are four matching offers with four different prices, the
controller 200 may decide that the highest priced one should be
filled first. The controller 200 may adjust such a pricing rule
(e.g., automatically or manually) when appropriate.
[0114] A matching objectives rule may also be based on whether the
buyer and seller have previously completed a transaction with each
other. If so, the controller 200 may determine if the previous
transaction was successful. If the transaction was not successful
(e.g., the buyer had submitted a complaint about the seller), the
controller 200 may eliminate the associated offer.
[0115] A matching objectives rule may also be based on how long a
matching offer has remained unmatched. For example, the controller
200 may select an older offer, a newer offer, an offer that is
closest to an expiration date, or an offer that is farthest away
from an expiration date.
[0116] A matching objectives rule may also be based on the location
of the buyer and/or seller. For example, the controller 200 may
select the potentially matching offer associated with a buyer who
lives in the same town as the seller. Similarly, other information
about the buyer and the seller may be used when determining a
matching OTB and OTS (e.g., the age of the buyer and/or the
seller).
[0117] A matching objectives rule may also be based on the identity
of the seller and/or the buyer. For example, the controller 200 may
"own" certain items and store them in a warehouse. In this case,
warehouse items may be matched more quickly. Alternatively,
warehouse items may be matched less quickly (e.g., to increase
seller satisfaction).
[0118] A matching objectives rule may also be based on whether the
item is a manufacturer-promoted item. For example, a manufacturer
may pay the controller 200 a fee to match a particular brand or
model number first.
[0119] Once the matching objectives are retrieved, the controller
200 applies them to each potential matching OTS (e.g., each OTS
having a "pending" status) until a single matching OTS remains. The
eliminated offers are assigned an "unmatched" status, and the
selected OTS and the OTB are assigned a "matched" status.
[0120] The appropriate seller and the buyer are notified, and the
transaction is completed. According to one embodiment, the
controller 200 charges the buyer and/or seller a commission fee
(e.g., a predetermined amount or a percentage of the item price)
either before or after the transaction is complete. The controller
200 may also arrange for the seller to sell the item to the buyer.
For example, the controller 200 may debit an account associated
with the buyer and credit an account associated with the seller.
The controller 200 may also, according to one embodiment of the
present invention, arrange for the delivery of the item (e.g.,
sending a delivery service to the seller) and/or arrange to inspect
the item (e.g., by receiving the item from the seller, inspecting
the item and delivering the item to the buyer).
Controller
[0121] FIG. 2 illustrates a controller 200 that is descriptive of
the device shown in FIG. 1 according to an embodiment of the
present invention. The controller 200 comprises a processor 210,
such as one or more INTEL.RTM. Pentium.RTM. processors, in
communication with a communication device 220 configured to
communicate through a communication network (not shown in FIG. 2).
The communication device 220 may be used to communicate, for
example, with: one or more seller devices 10, one or more buyer
devices 20 and/or one or more subsidy provider devices 30.
[0122] The processor 210 is also in communication with a storage
device 230. The storage device 230 may comprise any appropriate
information storage device, including combinations of magnetic
storage devices (e.g., magnetic tape and hard disk drives), optical
storage devices and semiconductor memory devices, such as Random
Access Memory (RAM) devices and Read Only Memory (ROM) devices.
[0123] The storage device 230 stores a program 215 for controlling
the processor 210. The processor 210 performs instructions of the
program 215, and thereby operates in accordance with the present
invention. For example, the processor 210 may receive seller offer
information associated with an item being offered for sale by a
seller, receive buyer offer information associated with a buyer
offering to make a purchase, determine an evaluation rule, match
the seller offer information and the buyer offer information based
on the evaluation rule, and arrange for the seller to sell the item
to the buyer.
[0124] According to another embodiment, the processor 210 may
receive seller offer information associated with an item being
offered for sale by a seller, determine an appropriate item price
based on the seller offer information, transmit information
associated with the appropriate item price to the seller, and
determine a seller price. Similarly, the processor 210 may receive
buyer offer information associated with a buyer offering to make a
purchase, determine an appropriate item price based on the buyer
offer information, transmit information associated with the
appropriate item price to the buyer, and determine a buyer
price.
[0125] According to another embodiment, the processor 210 may
receive seller offer information associated with an item being
offered for sale by a seller, receive buyer offer information
associated with a buyer offering to make a purchase, determine a
subsidy, the subsidy being associated with a benefit from a subsidy
provider to be applied to the transaction, and arrange for the
seller to provide the item to the buyer in accordance with the
benefit.
[0126] The program 215 may be stored in a compressed, uncompiled or
encrypted format. The program 215 may furthermore include program
elements that may be necessary, such as an operating system, a
database management system and "device drivers" used by the
processor 210 to interface with peripheral devices. Appropriate
program elements are known to those skilled in the art.
[0127] Note that the processor 210 and the storage device 230 may
be, for example: (i) located entirely within a single computer or
other computing device or (ii) located in separate devices coupled
through a communication channel. In one embodiment, the controller
200 comprises one or more computers that are connected to a remote
database server.
[0128] As used herein, information may be "received" by, for
example: (i) the controller 200 from any other device or (ii) a
software application or module within the controller 200 from
another software application, module or any other source.
Similarly, information may be "transmitted" to, for example: (i)
another device from the controller 200 or (ii) a software
application or module within the controller 200 from another
software application, module or any other source.
[0129] As shown in FIG. 2, the storage device 230 also stores: a
buyer database 300 (described with respect to FIG. 3); a seller
database 400 (described with respect to FIG. 4); an offer to buy
database 500 (described with respect to FIG. 5); an offer to sell
database 600 (described with respect to FIG. 6); an item category
database 700 (described with respect to FIG. 7); a quality class
database 800 (described with respect to FIG. 8); a matching
objectives database 900 (described with respect to FIG. 9); a rule
database 1000 (described with respect to FIG. 10); a subsidy rules
database 1100 (described with respect to FIG. 11); a subsidy
database 1200 (described with respect to FIG. 12); and a
transaction database 1300 (described with respect to FIG. 13).
[0130] Examples of databases that may be used in connection with
the transaction system 100 will now be described in detail with
respect to FIGS. 3 through 13. Each figure depicts a database in
which the data is organized according to a data structure in
accordance with embodiments of the present invention. The data may
be stored, for example, on a computer readable medium and be
accessible by a program executed on a data processing system. The
schematic illustration and accompanying description of these
databases are exemplary, and any number of other database
arrangements could be employed besides those suggested by the
figures.
Buyer Database
[0131] Referring to FIG. 3, a table represents one embodiment of
the buyer database 300 that may be stored at the controller 200
according to an embodiment of the present invention. The table
includes entries identifying buyers who may offer to make a
purchase. The table also defines fields 302, 304, 306, 308, 310,
312, 314, 316, 318 for each of the entries. The fields specify: a
buyer identifier 302; a buyer name 304; an address 306; a contact
identifier 308; associated offers to buy 310; a priority ranking
312; a payment identifier 314; accepted subsidy offers 316; and a
current balance 318. The information in the buyer database 300 may
be created and updated, for example, when a buyer registers with
the controller 200.
[0132] The buyer identifier 302 may be, for example, an
alphanumeric code associated with a buyer who may offer to make a
purchase via the transaction system 100. The buyer identifier 302
may be, for example, generated by the controller 200 or the buyer
(e.g., when the buyer selects a user name and password).
[0133] For each buyer, the buyer database 300 may also store the
buyer name 304 and the address 306 associated with the buyer. This
information may be based on, for example, information provided by
the buyer when he or she registers with the controller 200.
[0134] For each buyer, the buyer database 300 may also store the
contact identifier 308 that the controller 200 may use to contact
the buyer (e.g., to inform the buyer that an OTB has been matched).
The contact identifier 308 may be, for example, an electronic mail
address or a telephone number and may be based on, for example,
information provided by the buyer when he or she registers with the
controller 200 or submits an OTB.
[0135] The buyer database 300 may also store an indication (e.g.,
an identifier) of the associated offers to buy 310 that have been
submitted by the buyer as well as the priority ranking 312
associated with the buyer. For example, as illustrated by the first
entry of FIG. 3, the buyer having a buyer identifier of "B-1111"
has submitted two offers to buy (i.e., "OTB-0000" and "OTB-3333")
and has a priority ranking 312 of "1."
[0136] The payment identifier 314 stored in the buyer database 300
may be used by the controller 200, for example, to arrange for the
buyer to pay for an item, to charge the buyer a fee in exchange for
facilitating a transaction, and/or to apply a penalty to the
buyer.
[0137] The accepted subsidy offers 316 may store an indication
(e.g., an identifier) associated with each subsidy offer that the
buyer has accepted. Each of the accepted subsidy offers 316 may be
associated with, for example, a subsidy amount to be used in
connection with an OTB in exchange for the performance of a task by
the buyer (e.g., in exchange for answering five question or
subscribing to a magazine). According to another embodiment, an
accepted subsidy offer may be associated with a specific OTB
(instead of with a buyer).
[0138] The current balance 318 may indicate, for example, fees,
item prices and/or penalty amounts that the buyer owes to the
controller 200 and/or to one or more sellers.
Seller Database
[0139] Referring to FIG. 4, a table represents one embodiment of
the seller database 400 that may be stored at the controller 200
according to an embodiment of the present invention. The table
includes entries identifying sellers who may offer to sell an item.
The table also defines fields 402, 404, 406, 408, 410, 412, 414,
416, 418 for each of the entries. The fields specify: a seller
identifier 402; a seller name 404; an address 406; a contact
identifier 408; associated offers to sell 410; a priority ranking
412; a payment identifier 414; accepted subsidy offers 416; and a
current balance 418. The information in the seller database 400 may
be created and updated, for example, when a seller registers with
the controller 200.
[0140] The seller identifier 402 may be, for example, an
alphanumeric code associated with a seller who may be interested in
selling an item via the transaction system 100. The seller
identifier 402 may be, for example, generated by the controller 200
or the seller (e.g., when the seller selects a user name and
password).
[0141] For each seller, the seller database 400 may also store the
seller name 404 and the address 406 associated with the seller.
This information may be based on, for example, information provided
by the seller when he or she registers with the controller 200.
[0142] For each seller, the seller database 400 may also store the
contact identifier 408 that the controller 200 may use to contact
the seller (e.g., to inform the seller that an OTS has been
matched). The contact identifier 408 may be, for example, an
electronic mail address or a telephone number and may be based on,
for example, information provided by the seller when he or she
registers with the controller 200 or submits an OTS.
[0143] The seller database 400 may also store an indication (e.g.,
an identifier) of the associated offers to sell 410 that have been
submitted by the seller as well as the priority ranking 12
associated with the seller. For example, as illustrated by the
first entry of FIG. 4, the seller having a seller identifier of
"S-1111" has submitted two offers to sell (i.e., "OTS-5555" and
"OTS-3333") and has a priority ranking 412 of "1."
[0144] The payment identifier 414 stored in the seller database 400
may be used by the controller 200, for example, to arrange for the
seller to receive payment for an item, to charge the seller a fee
in exchange for facilitating a transaction, and/or to apply a
penalty to the seller.
[0145] The accepted subsidy offers 416 may store an indication
(e.g., an identifier) associated with the subsidy offers that the
seller has accepted. Each of the accepted subsidy offers 416 may be
associated with, for example, a subsidy amount to be used in
connection with an OTS in exchange for the performance of a task by
the seller. According to another embodiment, an accepted subsidy
offer may be associated with a specific OTS.
[0146] The current balance 418 may indicate, for example, fees,
item prices and/or penalty amounts that the seller owes to the
controller 200 and/or to one or more buyers.
[0147] Note that the buyer database 300 and the seller database 400
may comprise a single database. In this case, the database may
store both OTS and OTB information regarding each person.
Offer to Buy Database
[0148] Referring to FIG. 5, a table represents one embodiment of
the offer to buy database 500 that may be stored at the controller
200 according to an embodiment of the present invention. The table
includes entries each identifying an offer to purchase an item. The
table also defines fields 502, 504, 506, 508, 510, 512, 514, 516
for each of the entries. The fields specify: an offer to buy
identifier 502; a date received 504; an item category 506; a
matching code 508; a quality class 510; an asking price 512; a
maximum price 514; and a status 516. The information in the offer
to buy database 500 may be created and updated, for example, when
an OTB is received from a buyer.
[0149] The offer to buy identifier 502 may be, for example, an
alphanumeric code associated with a buyer's offer to purchase an
item. The offer to buy identifier 502 may be, for example,
generated by the controller when a buyer submits an OTB and may be
based on the associated offers to buy 310 stored in the buyer
database 300. The date received may indicate the date (and time of
day) that the OTB was received by the controller 200.
[0150] The item category 506 may be, for example, an alphanumeric
code and may indicate the type of item the buyer is interested in
purchasing. The item category 506 may be, for example, selected by
the buyer or be determined by the controller 200 based on
information received from the buyer.
[0151] The matching code 508 may be, for example, an alphanumeric
code and may indicate in detail the type of item the buyer is
interested in purchasing (e.g., including an age of the item, one
or more features associated with the item and acceptable product
manufacturers). The matching code 508 may be, for example,
determined by the controller 200 based on information received from
the buyer. The quality class 510 may be, for example, an
alphanumeric code and may indicate a level of quality associated
with the item the buyer is interested in purchasing. The quality
class 510 may be, for example, selected by the buyer. The quality
class 510 may instead be determined by the controller 200 based on
information received from the buyer (e.g., based on the item
category 506, the matching code 508, the asking price 512, and/or
the maximum price 514).
[0152] The asking price 512 and the maximum price 514 may represent
an amount the buyer would like to pay and the highest amount the
buyer is willing to pay for an item, respectively. The asking price
512 and the maximum price 514 may be, for example, selected by the
buyer (e.g., when the buyer selects one of a number of price
selections determined by the controller 200) or be determined by
the controller 200 based on information received from the buyer
(e.g., based on the item category 506, the matching code 508,
and/or the quality class 510).
[0153] The status 516 represents the status of the OTB. For
example, when the OTB is initially received it may be assigned a
status 516 of "open." When the OTB is being evaluated as a possible
match for an OTS, it may be assigned a status 516 of "pending."
When the OTB is matched with an OTS, it may be assigned a status
516 of "filled." When the buyer has purchased and received the item
from a seller, the OTB may be assigned a status 516 of "complete."
Finally, if an expiration date associated with the OTB has passed,
it may be assigned a status 516 of "expired" (i.e., it will not be
considered as a possible match in the future).
[0154] Thus, FIG. 5 depicts a database in which the data is
organized according to a data structure according to an embodiment
of the present invention. The data structure includes an offer to
buy data object (i.e., the offer to buy identifier 502)
representing an offer to purchase an item; and a matching code data
object 508 representing information that may be used to match the
OTB with an OTS.
Offer to Sell Database
[0155] Referring to FIG. 6, a table represents one embodiment of
the offer to sell database 600 that may be stored at the controller
200 according to an embodiment of the present invention. The table
includes entries each identifying an offer to sell an item. The
table also defines fields 602, 604, 606, 608, 610, 612, 614, 616
for each of the entries. The fields specify: an offer to sell
identifier 602; a date received 604; an item category 606; a
matching code 608; a quality class 610; an asking price 612; a
minimum price 614; and a status 616. The information in the offer
to sell database 600 may be created and updated, for example, when
at OTS is received from a seller.
[0156] The offer to sell identifier 602 may be, for example, an
alphanumeric code associated with a seller's offer to sell an item.
The offer to sell identifier 602 may be, for example, generated by
the controller when a seller submits an OTS and may be based on the
associated offers to sell 410 stored in the seller database 400.
The date received may indicate the date (and time of day) that the
OTS was received by the controller 200.
[0157] The item category 606 may be, for example, an alphanumeric
code and may indicate the type of item the seller is interested in
selling. The item category 606 may be, for example, selected by the
seller or be determined by the controller 200 based on information
received from the seller.
[0158] The matching code 608 may be, for example, an alphanumeric
code and may indicate in detail the type of item the seller is
interested in selling (e.g., including an age of the item, one or
more features associated with the item and a product manufacturer).
The matching code 608 may be, for example, determined by the
controller 200 based on information received from the seller. The
quality class 610 may be, for example, an alphanumeric code and may
indicate a level of quality associated with the item the seller is
interested in selling. The quality class 610 may be, for example,
selected by the seller. The quality class 610 may instead be
determined by the controller 200 based on information received from
the seller (e.g., based on the item category 606, the matching code
608, the asking price 612, and/or the minimum price 614).
[0159] The asking price 612 and the minimum price 614 may represent
an amount the seller would like to receive and the lowest amount
the seller is willing to accept in exchange for an item,
respectively. The asking price 612 and the maximum price 614 may
be, for example, selected by the seller (e.g., when the seller
selects one of a number of price selections determined by the
controller 200) or be determined by the controller 200 based on
information received from the seller (e.g., based on the item
category 606, the matching code 608, and/or the quality class
610).
[0160] The status 616 represents the status of the OTS. For
example, when the OTS is initially received it may be assigned a
status 616 of "unmatched." When the OTS is being evaluated as a
possible match for an OTB, it may be assigned a status 616 of
"pending." When the OTS is matched with an OTB, it may be assigned
a status 616 of "filled." When the seller has sold and provided the
item to a buyer, the OTS may be assigned a status 616 of
"complete." Finally, if an expiration date associated with the OTS
has passed, it may be assigned a status 616 of "expired" (i.e., it
will not be considered as a possible match in the future).
[0161] Thus, FIG. 6 depicts a database in which the data is
organized according to a data structure according to an embodiment
of the present invention. The data structure includes an offer to
sell data object (i.e., the offer to sell identifier 602)
representing an offer to sell an item; and a matching code data
object 608 representing information that may be used to match the
OTS with an OTB.
Item Category Database
[0162] Referring to FIG. 7, a table represents one embodiment of
the item category database 700 that may be stored at the controller
200 according to an embodiment of the present invention. The table
includes entries identifying item categories. The table also
defines fields 702, 704 for each of the entries. The fields
specify: an item category identifier 702; and a category
description. The information in the item category database 700 may
be created and updated, for example, by an operator associated with
the controller 200 and/or based on information received from
buyers, sellers (e.g., when a predetermined number of sellers
become interested in offering a new type of item for sale via the
controller 200), and/or product manufacturers.
[0163] The item category identifier 702 may be, for example, an
alphanumeric code associated with a type of item that may be
exchanged via the controller 200. The item category identifier 702
may also be based on, or associated with, the item category
identifier 506 stored in the offer to buy database 500 and/or the
item category identifier 606 stored in the offer to sell database
600. For each item category, the item category database 700 also
stores the associated category description 704. The category
description 704 may be, for example, a textual, graphical, and/or
audio description of the item category. The category description
704 may be transmitted, for example, to a seller device 10 or a
buyer device 20 to help the seller or buyer determine an
appropriate item category.
Quality Class Database
[0164] Referring to FIG. 8, a table represents one embodiment of a
record of the quality class database 800 that may be stored at the
controller 200 according to an embodiment of the present invention.
The table includes records associated with an item category. Each
record includes entries identifying features that may be associated
with an item in that category.
[0165] The table also defines fields 804, 806, 808, 810 for each of
the entries. The fields specify: a feature 804; a good class 806; a
better class 808; and a best class 810. The information in the
quality class database 800 may be created and updated, for example,
by an operator associated with the controller 200 and/or based on
information received from buyers, sellers, and/or
manufacturers.
[0166] The item category identifier 802 may be, for example, an
alphanumeric code associated with a type of item that may be
exchanged through the controller 200. The item category identifier
802 may also be based on, or associated with, the item category
identifier 506 stored in the offer to buy database 500, the item
category identifier 606 stored in the offer to sell database 600,
and/or the item category identifier 702 stored in the item category
database 700.
[0167] For each item category identifier 802, the quality class
database 800 may also store a feature 804 associated with the item
category, along with an indication of whether the feature is
associated with one or more quality classes (i.e., good class 806,
better class 808, and best class 810).
[0168] For example, the record illustrated in FIG. 8 represents the
item category identifier of "I-C111" which, as shown by the
category description 704 in FIG. 7 is associated with a "point and
shoot camera." Referring again to FIG. 8, a point and shoot camera
may have a feature 804 identified as "2.times. zoom lens," and such
a 2.times. zoom lens is associated with the best class 810 and the
better class 808 (i.e., as reflected by the "yes"), but not with
the good class 806 (i.e., as reflected by the "---").
[0169] The feature 804 may also indicate which manufacturers are
associated with each quality class and a suggested price range that
is appropriate for each quality class.
Matching Objectives Database
[0170] Referring to FIG. 9, a table represents one embodiment of
the matching objectives database 900 that may be stored at the
controller 200 according to an embodiment of the present invention.
The table includes entries identifying categories of rules that may
be used when matching an OTS and an OTB. The table also defines
fields 902, 904, 906, 908 for each of the entries. The fields
specify: a rule category identifier 902; a rule category
description 904; a matching priority 906; and a current rule 908.
The information in the matching objectives database 900 may be
created and updated, for example, manually by an operator
associated with the controller 200 and/or automatically based on
the performance of the controller 200 (e.g., based on a profit
being made by the controller 200 or a number of transactions being
completed via the controller 200).
[0171] The rule category identifier 902 may be, for example, an
alphanumeric code associated with a set of rules that may be used
to match an OTS and an OTB.
[0172] For each rule category, the matching objectives database 900
also stores the rule category description 904 that describes the
type of rules included in the rule category. For example, the rule
category may be described as "pricing rules" (e.g., the rules in
the category match an OTS and an OTB based on a price).
[0173] According to an embodiment of the present invention, the
rules categories are arranged in a hierarchy. That is, each rule
category is associated with a matching priority 906 that reflects
the order in which different types of rules should be used to match
an OTS and an OTB. For example, as illustrated in FIG. 9, pricing
rules (having a matching priority 906 of "1") may be used first by
the controller 200 when more than one potentially matching OTS
exists for an OTB (or vice versa). If more than one potentially
matching OTS exists even after the pricing rules are applied (e.g.,
eliminating some of the potentially matching offers), the
controller 200 would next apply the priority ranking rules (having
a matching priority 906 of "2"). Such priority ranking rules may,
for example, eliminate other offers based on the priority ranking
312 associated with the buyer and the priority ranking 412
associated with the seller. The controller 200 continues to select
a rule from each rule category until a single OTS is matched with
the OTB. According to one embodiment, a random process may also be
used to match an OTS with an OTB (e.g., when a number of different
offers may be matched).
[0174] The matching priority 906 may be updated, for example,
manually by an operator associated with the controller 200 and/or
automatically based on the performance of the controller 200 (e.g.,
the hierarchy may be re-organized based on a profit being made by
the controller 200).
[0175] The current rule 908 in the matching objectives database 900
indicates which rule in the rule category is currently being
applied by the controller 200. For example, there may be a number
of different rules in the pricing rules category. In this case, the
current rule 908 may reflect which pricing rule should be used by
the controller 200 to match an OTS and an OTB.
Rule Database
[0176] Referring to FIG. 10, a table represents one embodiment of a
record of the rule database 1000 that may be stored at the
controller 200 according to an embodiment of the present invention.
The table includes records associated with a rule category that may
be used to match an OTS and an OTB. Each record includes entries
identifying one or more rules in that rule category.
[0177] The table also defines fields 1004, 1006 for each of the
entries. The fields specify: a rule identifier 1004; and a rule
description 1006. The information in the rule database 1000 may be
created and updated, for example, manually by an operator
associated with the controller 200 and/or automatically based on
the performance of the controller 200.
[0178] The rule category identifier 1002 may be, for example, an
alphanumeric code associated with a set of rules that may be used
to match an OTS and an OTB. The rule category identifier 1002 may
also be based on, or associated with, the rule category identifier
902 stored in the matching objectives database 900.
[0179] For each rule category, the rule database 1000 may also
store a rule identifier 1004. The rule identifier may be, for
example, an alphanumeric code associated with a particular rule
that may be used to match an OTS and an OTB. The rule identifier
1004 may also be based on, or associated with, the current rule 908
stored in the matching objectives database 900.
[0180] The rule description 1006 describes the particular rule in
the rule category. For example, a particular rule in the pricing
rules category may be described as "match all OTB to high OTS"
(e.g., all OTB are matched with the OTS having the highest seller
price).
Subsidy Rules Database
[0181] Referring to FIG. 11, a table represents one embodiment of
the subsidy rules database 1100 that may be stored at the
controller 200 according to an embodiment of the present invention.
The table includes entries identifying rules that may be applied to
determine if a subsidy will be added to an OTS and/or an OTB. The
table also defines fields 1102, 1104, 1106, 1108 for each of the
entries. The fields specify: a subsidy rule identifier 1102; a
condition 1104; a subsidy rule 106; and a discrepancy rule 1108.
The information in the subsidy rules database 1100 may be created
and updated, for example, manually by an operator associated with
the controller 200 and/or based on information received from one or
more subsidy provider devices 30.
[0182] The subsidy rule identifier 1102 may be, for example, an
alphanumeric code associated with a rule that may be applied by the
controller 200 to determine if a subsidy will be added to an OTS
and/or an OTB.
[0183] For each subsidy rule, the subsidy rule database 1100 also
stores the condition 1104 that must be satisfied in order for the
rule to be applied. For example, a rule may only be applied if a
price (e.g., a buyer price, or a seller's minimum price) is more
than $200.
[0184] The subsidy rule 1106 indicates the rule that will be
applied by the controller 200 regarding a subsidy that will be
added to an OTS and/or an OTB (e.g., a subsidy amount the
controller 200 will contribute in order to complete a transaction).
For example, a subsidy rule 1106 may comprise adding up to $30 to
an OTS.
[0185] The discrepancy rule 1108 indicates how the controller 200
may handle any funds that remain after a subsidy is used with
respect to an OTS and/or an OTB. For example, the controller may
add $10 in order to match an OTB having a maximum price 514 of $90
with an OTS having a minimum price 614 of $95. In this case, the
controller 200 may keep the extra $5, or provide the extra amount
to the seller and/or the buyer.
Subsidy Database
[0186] Referring to FIG. 12, a table represents one embodiment of
the subsidy database 1200 that may be stored at the controller 200
according to an embodiment of the present invention. The table
includes entries identifying subsidies that may be offered to a
buyer and/or a seller. The table also defines fields 1202, 1204,
1206, 1208 for each of the entries. The fields specify: a subsidy
identifier 1202; a subsidy provider 1204; a subsidy description
1206; and a current balance 1208. The information in the subsidy
database 1200 may be created and updated, for example, based on
information received from a subsidy provider device 30.
[0187] The subsidy identifier 1202 may be, for example, an
alphanumeric code associated with a subsidy that may be offered via
the controller 200. The subsidy identifier may be based on, or
associated with, the accepted subsidy offers 315 stored in the
buyer database 300 and/or the accepted subsidy offers 416 stored in
the seller database 400. The subsidy provider 1204 may indicate the
party that is supplying funds for the subsidies. For example, the
subsidy provider 1204 may be a manufacturer, a third party or the
controller 200.
[0188] The subsidy description 1206 may be a textual, graphical, or
audio description of the subsidy offer. For example, the subsidy
description 1206 may indicate that $50 will be added to an OTB if
the buyer subscribes to a long distance service associated with the
subsidy provider 1204. The current balance 1208 may indicate an
amount of available funds that may be used to provide subsidies to
buyers and/or sellers. For example, the current balance 1208 may be
increased based on information received from a subsidy provider
device 30 (e.g., when the subsidy provider adds money to the
subsidy account maintained by the controller 200) and decreased
each time a buyer or a seller accepts the subsidy (e.g., by
agreeing to perform a task). According to one embodiment, a penalty
may be applied to a buyer or a seller who accepted a subsidy offer
but failed to perform a task.
Transaction Database
[0189] Referring to FIG. 13, a table represents one embodiment of
the transaction database 1300 that may be stored at the controller
200 according to an embodiment of the present invention. The table
includes entries identifying transactions that have been filled or
completed via the controller 200. The table also defines fields
1302, 1304, 1306, 1308, 1310, 1312, 1314, 1316 for each of the
entries. The fields specify: a transaction identifier 1302; an
offer to sell identifier 1304; an offer to buy identifier 1306; a
price 1308; a fill date 1310; a complete date 1312; a buyer subsidy
1314; and a seller subsidy 1316. The information in the transaction
database 1300 may be created and updated, for example, when an OTB
and an OTS are matched.
[0190] The transaction identifier 1302 may be, for example, an
alphanumeric code associated with a transaction that has been
filled (e.g., matched) or completed via the controller 200. The
transaction identifier may, for example, be generated by the
controller 200 when an OTB and an OTS are matched.
[0191] For each transaction, the transaction database 1300 stores
the offer to sell identifier 1304 and the offer to buy identifier
1306 associated with the OTS and OTB, respectively, that have been
matched by the controller 200. The offer to sell identifier 1304
may be based on, or associated with, the offer to sell identifier
602 stored in the offer to sell database 600. The offer to buy
identifier 1306 may be based on, or associated with, the offer to
buy identifier 502 stored in the offer to buy database 500.
[0192] The price 1308 stored in the transaction database 1300 may
indicate an amount the buyer will provide in exchange for an item
and/or an amount a seller will receive in exchange for providing
the item to the buyer. The fill date 1310 may indicate the date on
which an OTS was matched with an OTB and the complete date 1312 may
indicate a date on which the transaction has been completed (e.g.,
a date on which the item has been provided to the buyer, the buyer
has provided payment of the price 1308, and/or the seller has
received the price 1308). The buyer subsidy 1314 and the seller
subsidy 1316 may indicate a subsidy amount that has been applied to
an OTB and/or an OTS, respectively, during the transaction.
[0193] Methods that may be used in connection with the transaction
system 100 according to an embodiment of the present invention will
now be described in detail with respect to FIGS. 14 through 23. In
particular, FIGS. 14 through 16 and 23 illustrate some general
embodiments, while FIGS. 17 through 22 illustrate more detailed
embodiments according to the present invention.
Transaction System Methods
[0194] FIG. 14 is a flow chart illustrating a method which may be
performed by a controller 200 according to an embodiment of the
present invention. The flow chart depicted in FIG. 14, as well as
the other flow charts discussed herein, is not intended to imply a
fixed order to the elements shown therein, and embodiments of the
present invention can be practiced in any order that is
practicable.
[0195] At 1402, seller offer information is received. The seller
offer information may comprise, for example, registration
information and/or an OTS associated with an item being offered for
sale by a seller. The seller offer information may be received, for
example, from a seller device 10 via a Web site, the Internet, a
seller computer, a PDA, a kiosk, an electronic mail message, a
telephone, an interactive voice response unit, and/or an operator.
The seller offer information may include, for example, an item
category, an item quality class, at least one item feature, a
seller price, an age associated with the item, an item
manufacturer, an item description, an item image, an item
condition, an accessory associated with the item, a seller offer
period, seller delivery information, seller payment information, a
seller evaluation rule, and/or a seller preference.
[0196] At 1404, buyer offer information is received. The buyer
offer information may comprise, for example, an OTB associated with
a buyer offering to make a purchase. The buyer offer information
may be received, for example, from a buyer device 10 via a Web
site, the Internet, a buyer computer, a PDA, a kiosk, an electronic
mail message, a telephone, an interactive voice response unit,
and/or an operator. The buyer offer information may include, for
example, an item category, an item quality class, at least one item
feature, a buyer price, an age associated with the item, one or
more acceptable item manufacturers, an item description, an item
image, an item condition, a buyer offer period, buyer delivery
information, buyer payment information, a buyer evaluation rule,
and a buyer preference.
[0197] At 1406, an evaluation rule is determined. According to one
embodiment of the present invention, the evaluation rule
automatically determined based on revenue management information
associated with the controller 200, such as an amount of profit
associated with the controller and/or a number of transactions
associated with the controller. According to another embodiment,
the evaluation rule is determined manually by an operator
associated with the controller 200. In either case, the evaluation
rule may be selected from a plurality of possible evaluation rules.
According to another embodiment, the evaluation rule is determined
by retrieving a predetermined evaluation rule (e.g., a stored
evaluation rule).
[0198] According to another embodiment, the controller 200 measures
a current performance parameter (e.g., a rate at which transactions
are being completed), and the evaluation rule is determined based
on this measurement (e.g., a certain evaluation rule traditionally
has worked well during a holiday season).
[0199] According to another embodiment, the evaluation rule is
determined based on a matching objective. The matching objective
may be, for example, to increase a profit associated with the
transaction and/or to increase a total number of transactions.
[0200] According to one embodiment of the present invention, the
evaluation rule comprises not matching the buyer with at least one
predetermined seller (e.g., when the buyer and that seller have had
a problem during a past transaction) and/or not matching the seller
with at least one predetermined buyer.
[0201] The evaluation rule may also be based on, for example, when
the buyer offer information is received and/or when the seller
offer information is received (e.g., an older offer may be matched
before a newer offer).
[0202] The evaluation rule may also be based on information
associated with the controller 200. For example, the information
associated with the controller 200 may comprise an amount of profit
associated with the transaction for the controller 200, a current
overall level of profit associated with the controller 200,
information associated with another controller 200, a total number
of buyer offers pending in the controller 200 for similar items,
and a total number of seller offers pending in the controller 200
for similar items.
[0203] The evaluation rule may also be based on information
associated with the seller, such as, for example, a seller
location, a seller transaction history, a seller reputation, a
seller payment identifier, demographic information associated with
the seller, psychographic information associated with the seller, a
credit rating associated with the seller, other offers to sell
associated with the seller, other offers to buy associated with the
seller, and/or an amount of profit associated with the transaction
for the seller.
[0204] The evaluation rule may also be based on information
associated with the buyer, such as, for example, a buyer location,
a buyer transaction history, a buyer reputation, a buyer payment
identifier, demographic information associated with the buyer, a
credit rating associated with the buyer, psychographic information
associated with the buyer, other offers to sell associated with the
buyer, other offers to buy associated with the buyer, and/or an
amount of profit associated with the transaction for the buyer.
[0205] The evaluation rule may also be based on information
associated with the item, such as, for example, a past popularity
of the item, a current popularity of the item, and/or a predicted
future popularity of the item.
[0206] At 1408, the seller offer information and the buyer offer
information are matched based on the evaluation rule.
[0207] According to one embodiment, a buyer offer code is
determined based on the buyer offer information, and a seller offer
code is determined based on the seller offer information. The buyer
offer code may then be matched with the seller offer code based on
the evaluation rule. For example, the buyer offer code may be
associated with a set of possible items, and the matching may
comprise determining that the seller offer code is associated with
a subset of the set of possible items.
[0208] According to another embodiment, the controller 200
determines an item quality class associated with the item based on
the seller offer information. The buyer offer information may then
be matched based on the quality class. Similarly, the controller
200 may determine an item quality class associated with the item
based on the buyer offer information. The seller offer information
may then be matched based on the quality class. In either case, the
item quality class may based on, for example, an item category, at
least one item feature, an item price (e.g., a seller price or a
buyer price), an age associated with the item, an item
manufacturer, an item description, an item image, an item
condition, and/or an accessory associated with the item.
[0209] According to another embodiment, the seller offer
information includes a seller price (e.g., a buyer asking price
and/or a buyer maximum price), and the buyer offer information
includes a buyer price (e.g., a seller asking price and/or a seller
minimum price). In this case, the matching may be performed based
on the seller price and the buyer price. For example, an OTS having
a minimum price of $5.00 may be matched with an OTB having a
maximum price of $6.00 but not with an OTB having a maximum price
of $4.00. That is, according to one embodiment, the seller price
must be less than or equal to the buyer price. According to another
embodiment, however, the seller price may be greater than the buyer
price (e.g., the controller 200 or any other party may subsidize
the transaction). According to another embodiment, the seller price
and buyer price may not even be considered when the matching is
performed by the controller 200.
[0210] According to another embodiment, the seller offer
information includes a seller address, and the buyer offer
information includes a buyer address. In this case, the matching
may be performed based on the seller address and the buyer address
(e.g., an OTS may be matched with an OTB if the seller lives within
five miles of the buyer). According to another embodiment, an OTS
may be matched with an OTB if both the seller and the buyer live
(or work) within a predetermined distance of a third party address.
For example, an OTS may be matched with an OTB if both the seller
and the buyer live within five miles of a MCDONALD'S.RTM.
restauraunt.
[0211] According to another embodiment, the seller offer
information includes at least one transaction requirement, and
buyer offer information will only be considered a match if the
buyer offer information complies with the transaction requirement
(e.g., the buyer has a predetermined reputation rating). According
to another embodiment, the buyer offer information includes at
least one transaction requirement, and seller offer information
will only be considered a match if the seller offer information
complies with the transaction requirement (e.g., the seller has
been the only owner of the item).
[0212] According to another embodiment, the seller offer
information includes at least one transaction preference, and buyer
offer information is more likely to be considered a match if the
buyer offer information complies with the transaction preference
(e.g., the buyer should preferably be a METS.RTM. fan). According
to another embodiment, the buyer offer information includes at
least one transaction preference, and seller offer information is
more likely to be considered match if the seller offer information
complies with the transaction preference (e.g., the seller should
preferably be over 65 years old).
[0213] According to one embodiment, the seller offer information
may potentially be matched with a plurality of buyer offers, and
the controller 200 selects one of the buyer offers. The buyer offer
may be selected, for example, based on priority rankings associated
with the buyer offers. The priority rankings may be based on, for
example, priority payments, other seller offers for similar items,
other buyer offers for similar items, transaction histories, seller
offer information, and/or the buyer offer information.
[0214] According to another embodiment, the buyer offer information
may potentially be matched with a plurality of seller offers, and
the controller 200 selects one of the seller offers. The seller
offer may be selected, for example, based on priority rankings
associated with the seller offers. The priority rankings may be
based on, for example, priority payments, other seller offers for
similar items, other buyer offers for similar items, transaction
histories, the seller offer information, and/or buyer offer
information.
[0215] According to one embodiment, the controller 200 periodically
attempts to match an OTS with an OTB. According to another
embodiment, the controller 200 periodically attempts to match an
OTB with an OTS. The controller 200 may also evaluate offers, for
example, when a new OTS and/or OTB is received.
[0216] At 1410, the controller arranges for the seller to sell the
item to the buyer. According to one embodiment, a seller offer is
"binding" in that the seller is obligated to sell the item
subsequent to said matching. In this case, the controller 200 may
arrange for the seller to provide payment of a penalty amount if
the seller does not sell the item. According to another embodiment,
a buyer offer is "binding" in that the buyer is obligated to
purchase the item subsequent to said matching. In this case, the
controller 200 may arrange for the buyer to provide payment of a
penalty amount if the buyer does not purchase the item. Note that
both the seller offer and the buyer offer may be binding or neither
the seller offer nor the buyer offer may be binding.
[0217] FIG. 15 is a flow chart of a method according to another
embodiment of the present invention. At 1502, seller offer
information is received. The seller offer information may comprise,
for example, registration information and/or an OTS associated with
an item being offered for sale by a seller.
[0218] At 1504, an appropriate item price is determined based on
the seller offer information. According to another embodiment, the
appropriate item price is further based on a matching objective,
such as to increase a profit associated with the transaction and/or
to increase a total number of transactions.
[0219] According to an embodiment of the present invention, an item
quality class is determined based on the seller offer information.
For example, based on an item manufacturer and one or more item
features, the controller 200 may determine that an item is in the
"better" class. The appropriate item price may then be determined
based on the item quality class.
[0220] At 1506, information associated with the appropriate item
price is transmitted to the seller. The information may comprise,
for example, the appropriate item price (or appropriate item price
range), a probability that the item will be sold at one or more
prices, and an average length of time it will take to sell the item
at one or more prices. The information may be transmitted to, for
example, a seller device 10 via a Web site, the Internet, a seller
computer, a PDA, a kiosk, an electronic mail message, a telephone,
an interactive voice response unit, and/or an operator.
[0221] At 1508, an actual seller price is determined. The actual
seller price may be determined, for example, by the controller 200
setting the actual seller price to the appropriate item price
(e.g., the controller 200, and not the seller, determines the
actual seller price).
[0222] According to another embodiment, the controller may receive
an adjustment of the appropriate item price from the seller device
10. For example, the seller may indicate that he or she would like
to increase the appropriate item price by $5 or 10%. The actual
seller price is then determined based on the appropriate item price
and the adjustment. According to another embodiment, the actual
seller price is determined based on information received from the
seller device 10. For example, seller may transmit a seller-defined
price to the controller 200.
[0223] Note that the method described with respect to FIG. 15 may
similarly be performed to transmit an appropriate item price to the
buyer and to determine an actual buyer price.
[0224] FIG. 16 is a flow chart of a method according to another
embodiment of the present invention.
[0225] At 1602, seller offer information is received. The seller
offer information may comprise, for example, registration
information and/or an OTS associated with an item being offered for
sale by a seller. At 1604, buyer offer information is received. The
buyer offer information may comprise, for example, an OTB
associated with a buyer offering to make a purchase.
[0226] At 1606, a subsidy is determined. The subsidy is associated
with a benefit from a subsidy provider (e.g., the controller 200 or
a third party) to be applied to the transaction (e.g., on behalf of
a buyer and/or a seller).
[0227] The subsidy may be conditioned upon performance of a task by
the seller. In this case, the controller 200 may transmit an
indication of a subsidy offer to the seller, and receive an
indication of acceptance of the subsidy offer from the seller.
According to another embodiment, the subsidy is conditioned upon
performance of a task by the buyer. In this case, the controller
200 may transmit an indication of a subsidy offer to the buyer, and
receive an indication of acceptance of the subsidy offer from the
buyer. Note that a subsidy may also be conditioned upon performance
of a task by both the buyer and the seller. According to one
embodiment, the indication of the subsidy offer is transmitted to
the seller and/or the buyer via a Web site, the Internet, a
computer, a PDA, a kiosk, an electronic mail message, a telephone,
an interactive voice response unit, and/or an operator.
[0228] According to one embodiment, a subsidy may be conditioned
upon, for example, a buyer and/or a seller submitting another offer
to the controller 200, completing another transaction through the
controller 200, subscribing to a service, applying for a service, a
performance of a task (or a promise to perform a task), and/or a
performance of a plurality of tasks.
[0229] The subsidy may be determined by the controller 200 based
on, for example, information associated with the seller,
information associated with the item, information associated with
the buyer, information associated with the controller 200, and/or
information associated with a third party. The subsidy may also be
based on, for example, an item category, an item quality class, at
least one item feature, an item price, an age associated with the
item, an item manufacturer, an item description, an item image, an
item condition, an accessory associated with the item, an offer
period, delivery information, payment information, at least one
evaluation rule, a location, a transaction history, demographic
information, psychographic information, a credit rating, other
offers to sell, other offers to buy, and/or an amount of profit
associated with the transaction.
[0230] At 1608, it is arranged for the seller to provide the item
to the buyer in accordance with the benefit. For example, the
benefit may comprise a subsidy amount that is added to the buyer
price and provided to the seller in exchange for the item.
[0231] FIG. 17 is a flow chart of a matching method according to an
embodiment of the present invention. At 1702, the controller 200
receives an offer (i.e., an OTS or an OTB) including item
information. Based on the item information, the controller 200
generates a matching code for the item at 1704. The matching code
is used to find compatible codes and determine at least one
matching offer at 1706. The matching objectives are applied to the
determined matching offers at 1708 to select an "optimal" matching
offer (e.g., an offer that best satisfies the matching objectives).
The controller 200 then automatically matches, or binds, the
received offer with the selected offer.
[0232] FIG. 18A is a flow chart of an offer to buy method according
to an embodiment of the present invention. At 1802, an OTB,
including an indication of an item category, is received from a
buyer (e.g., the buyer is interested in purchasing a "camera"). At
least one quality class associated with the item category is
retrieved at 1804, and the retrieved quality class or classes are
output to the buyer at 1806. A selection of a quality class is then
received from the buyer at 1808 (e.g., "best" quality).
[0233] At 1810, the controller 200 retrieves at least one price or
price range associated with the selected quality class and outputs
the retrieved price to the buyer at 1812. The controller 200 then
receives a price to associate with the OTB from the buyer at 1814
(e.g., when the buyer selects one of a plurality of appropriate
prices).
[0234] At 1816, the controller 200 retrieves a predetermined
matching code for the received quality class to assign to the OTB,
and the buyer information is stored in the buyer database 300. The
OTB information, including the price (e.g., as an asking price 512
or a maximum price 514) and matching code 508, is stored in the
offer to buy database 500.
[0235] FIG. 18B is a flow chart of an offer to sell method
according to an embodiment of the present invention. At 1820, an
OTS, including an item description, is received from a seller.
Based on the item description, the controller 200 assigns the OTS
to a quality class.
[0236] At 1824, the controller 200 retrieves at least one price or
price range associated with the assigned quality class and outputs
the retrieved price to the seller at 1826. The controller 200 then
receives a price to associate with the OTS from the seller at 1828
(e.g., when the seller selects one of a plurality of appropriate
prices).
[0237] At 1830, the controller 200 generates a matching code for
the OTS, and the seller information is stored in the seller
database 400. The OTS information, including the price (e.g., an
asking price 612 or a minimum price 614) and the matching code 608,
is stored in the offer to sell database 600.
[0238] FIG. 19 is a flow chart of a preliminary matching method
based on the compatibility of matching codes and basic price
elimination according to an embodiment of the present invention. At
1902, an OTB, including an item description and a price (e.g., a
maximum price 514) are received from a buyer, and a matching code
is assigned to the OTB at 1904.
[0239] At 1906, each OTS with a matching code that is compatible
with the matching code assigned to the OTB is retrieved. If at
least one OTS is not found at 1908, the OTB is stored as
"unmatched" for a predetermined time (e.g., for twenty four hours)
at 1910.
[0240] If at least one matching OTS is found at 1908, each OTS with
a price (e.g., a minimum price 614) exceeding the OTB price is
eliminated at 1912. If more than one OTS still remains, the
controller 200 selects an optimal matching OTS based on matching
objectives (e.g., based on information in the matching objectives
database 900 and rules database 1000).
[0241] FIGS. 20A through 20C are a flow chart of a subsidy method
according to an embodiment of the present invention. At 2002, an
OTB is received from a buyer. The OTB includes an item description,
an asking price, and a maximum price. Based on the item
description, the controller 200 retrieves at least one matching OTS
at 2004.
[0242] If the price of the matching OTS is less than or equal to
the OTB asking price at 2006, the match is completed based on
matching objectives at 2008 (e.g., the OTS is selected as a
potentially matching offer and the matching objectives may be used
to select one of a number of potentially matching offers).
[0243] If the price of the matching OTS is more than the OTB asking
price at 2006, a subsidy rule is retrieved by the controller 200 in
accordance with the information associated with the OTB at 2010.
The controller 200 then calculates a subsidy amount based on the
retrieved subsidy rule at 2012 and the subsidy amount is added to
the OTB asking price at 2014.
[0244] The controller then searches for a matching OTS with a price
less than or equal to the OTB asking price plus the subsidy amount
at 2016. If, at 2018, the price of at least one matching OTS is
less than or equal to the OTB asking price plus the subsidy amount,
the match is completed at 2020 and a discrepancy rule is applied
with respect to any excess funds.
[0245] If, at 2018, no OTS has a price less than or equal to the
OTB asking price plus the subsidy amount, the controller 200
searches for a matching OTS with a price less than the OTB maximum
price at 2022. If, at 2024, the price of at least one matching OTS
is less than or equal to the maximum price, the match is completed
based on current matching objectives at 2026.
[0246] If, at 2024, no OTS has a price less than or equal to the
maximum price, a subsidy rule is retrieved by the controller 200 in
accordance with the information associated with the OTB at 2028.
The controller 200 then calculates a subsidy amount based on the
retrieved subsidy rule at 2030 and the subsidy amount is added to
the OTB maximum price at 2032.
[0247] The controller 200 searches for a matching OTS with a price
less than the OTB maximum price plus the subsidy amount at 2034.
If, at 2036, the price of at least one matching OTS is less than or
equal to the maximum price plus the subsidy amount, the match is
completed and a discrepancy rule is applied at 2038.
[0248] If, at 2036, no OTS has a price less than or equal to the
maximum price plus the subsidy amount, the OTB is stored as
unmatched at 2040. An electronic mail message may be sent to the
buyer indicating, for example, that a match may be found if his or
her maximum price was increased by $5.
[0249] FIG. 21 is a flow chart of a matching objective method when
there is more than one matching OTS for a single OTB according to
an embodiment of the present invention. An OTB, including an item
description and a price (e.g., a maximum price) is received from a
buyer at 2102. Based on the item description and price, more than
one matching OTS is retrieved at 2104 from the offer to sell
database 600.
[0250] Based on the matching objectives hierarchy retrieved from
the matching objectives database 900 at 2106, the highest priority
rule associated with the matching objective at the top of the
hierarchy is retrieved at 2108 from the rule database 1000. The
highest priority rule is then applied to each matching OTS at
2110.
[0251] If only a single matching OTS remains at 2112, the
controller 200 automatically matches and binds that OTS with the
received OTB at 2114.
[0252] If more than one OTS remains at 2112, the next highest
priority matching objective is retrieved from the matching
objectives database 900 at 2116. The highest priority rule
associated with the next highest priority matching object is
retrieved at 2118 from the rule database 1000. This rule is then
applied to each remaining OTS at 2110, and the process is repeated
until a single OTS is matched to the received OTB.
[0253] FIG. 22 is a flow chart of a "timed-release" method
according to an embodiment of the present invention. At 2202, an
OTB is received. If a matching OTS is found at 2204, the
transaction is completed as appropriate at 2206.
[0254] If no matching OTS is found at 2204 (e.g., the controller
200 has been unable to match the OTB for a predetermined period of
time, such as for one week), the contact identifier 408 of each
seller available for messaging (e.g., each seller who requested
such messaging when he or she registered with the controller 200)
is retrieved at 2208 from the seller database 400. The contact
identifier 408 is then used to transmit an indication of the
unmatched OTB to those sellers at 2210.
[0255] If this results in a match at 2212 (e.g., if one of the
contacted sellers accepted the unmatched OTB), the transaction is
completed at 2214. If no match is found at 2212, the unmatched OTB
is posted on a general Web site that potential sellers may visit to
review, and accept, the unmatched OTB.
[0256] Thus, the time-release embodiment provides an alternative to
rejecting an OTB if it is not automatically matched. This
embodiment also enables the controller 200 to have different types
of sellers, some of whom pay for receiving various services (e.g.,
some of whom pay to receive an electronic mail message regarding an
unmatched OTB). A similar time-release embodiment may be
implemented with respect to an unmatched OTS.
[0257] According to one embodiment, a seller may not submit a
specific OTS but may instead indicate that he or she is interested
in learning about all offers to buy that satisfy some criteria
(e.g., all offers to buy associated with any of a list of baseball
cards). In this case, the controller 100 may inform the seller of
all such offers to buy or only of those offers to buy that are not
matched with an OTS. Similarly, a buyer may not submit a specific
OTB but may instead indicate that he or she is interested in
learning about all offers to sell that satisfy some criteria.
[0258] FIG. 23 is a flow chart of a method for arranging the sale
of a secondary market item in accordance with an embodiment of the
present invention. At 2302, seller payment information is received,
as is a binding seller offer associated with a secondary market
item. At 2304, buyer payment information is received, as is a
binding buyer offer associated with a buyer interested in making a
purchase.
[0259] At 2306, the binding seller offer and the binding buyer
offer are matched, and at 2308 it is arranged for the seller to
sell the secondary market item to the buyer.
[0260] If it is determined at 2310 that the seller has not
performed in accordance with the binding seller offer (e.g., the
seller has not provided the item), then a penalty is applied to the
seller at 2312. The penalty may comprise, for example, having the
seller provide payment of a penalty amount (e.g., to the controller
200 and/or the buyer) using the seller payment information. The
penalty may also comprise, for example, preventing another offer
from the seller and/or adjusting a reputation associated with the
seller.
[0261] If it is determined at 2314 that the buyer has not performed
in accordance with the binding buyer offer (e.g., the buyer has not
provided payment in exchange for the item), then a penalty is
applied to the buyer at 2316. The penalty may comprise, for
example, having the buyer provide payment of a penalty amount
(e.g., to the controller 200 and/or the seller) using the buyer
payment information. The penalty may also comprise, for example,
preventing another offer from the buyer and/or adjusting a
reputation associated with the buyer.
[0262] If both the seller and the buyer have performed in
accordance with their respective offers, the transaction is
completed at 2318.
ADDITIONAL EMBODIMENTS
[0263] The following are several examples which illustrate
additional embodiments of the present invention. These examples do
not constitute a definition of all possible embodiments, and those
skilled in the art will understand that the present invention is
applicable to many other embodiments. Further, although the
following embodiments are briefly described for clarity, those
skilled in the art will understand how to make any changes, if
necessary, to the above-described apparatus and methods to
accommodate these and other embodiments and applications.
[0264] According to one embodiment, buyers and sellers can receive
periodic updates about the status of their offers. For example, the
controller 200 may transmit status information to a buyer or seller
along with at least one "close" matching offer. That is, the
controller 200 selects an offer that does not match (e.g., does not
match based on price or geography) and transmits information about
the offer to the buyer and/or seller in a "close-call" electronic
mail message. The buyer and/or seller can then determine whether to
bind this offer (e.g., by increasing or decreasing an offer price).
The buyer and/or seller may pay a fee for such a service.
[0265] According to another embodiment, when an OTB cannot be
matched the controller 200 determines what aspects of the OTB are
preventing a match. The aspects may include, for example, the buyer
price, the item quality, and one or more item features. The
controller 200 may send an electronic mail message to the buyer
describing the aspects of the OTB that should be adjusted to
increase the probability that the OTB will be matched. A similar
embodiment may be directed to an OTS. In either case, the
electronic mail message may further include an incentive to adjust
the offer.
[0266] According to another embodiment, the controller 200
automatically adjusts an offer price on a periodic basis. For
example, a seller may ask that his or her minimum price be lowered
by $10 each week until an item is sold. Similarly, a buyer may ask
that his or her maximum price be increased by 1% each day until an
item is purchased.
[0267] According to another embodiment, a buyer and/or seller
receives a benefit in exchange for submitting a reasonable offer
(e.g., an offer that is more likely to be matched by the controller
200). For example, a buyer may be told that he or she will receive
a free warranty (or have a commission fee waived) in exchange for
selecting a buyer price within an appropriate item price range.
[0268] According to another embodiment, the controller 200 stores
commission fee rules. The commission fee rules may be based on, for
example, an average item price or seller-defined item price, an
item type, and/or a market size for the item. As the market for an
item grows or changes, the commission fee may be adjusted to
improve, for example, a volume-to-profit ratio.
[0269] According to another embodiment, a "ticker-tape" or "zipper"
display is used to present information about offers that have been
submitted by buyers. Each OTB moves across the zipper display and
may be a hyperlink used to receive information, accept the OTB,
and/or submit a counter-offer. According to another embodiment, a
first zipper displays open offers and a second zipper displays
bound offers *along with the length of time to took for the offer
to be bound). The seller may specify the types of offers included
in the zipper display based on, for example, his or her location
and/or an item category. According to another embodiment, the
seller may submit an OTS and only be shown an OTB if it potentially
matches the seller's OTS. According to another embodiment, the
zipper display indicates the minimum price set by a seller and the
actual price at which the item was sold.
[0270] The present invention has been described in terms of several
embodiments solely for the purpose of illustration. Persons skilled
in the art will recognize from this description that the invention
is not limited to the embodiments described, but may be practiced
with modifications and alterations limited only by the spirit and
scope of the appended claims.
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