Shipping Charge Calculation System and Method

• US 20080010223A1
• Filed: 06/22/2007
• Published: 01/10/2008
• Est. Priority Date: 06/22/2006
• Status: Abandoned Application

• Current Assignee: Digital River Incorporated (Danube Private Holdings II, LLC)
• Original Assignee: Digital River Incorporated (Danube Private Holdings II, LLC)
• Inventors: Ludin, Ahmad, Hoffman, Lance, Bellomo, Peter Joseph
• Application Number:
  US11/767,245
• Publication Number:
  US 20080010223A1
• Time in Patent Office: Days
• US Class Current: 705/402
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G07B 17/00362 Calculation or computing within apparatus, e.g. calculation of postage value
• CPC Class Codes: G07B 2017/00298 Visual, e.g. screens and their layouts
• CPC Class Codes: G07B 2017/0037 Calculation of postage value

Abstract

A software module is implemented on a web site to calculate shipping rates based on different formulas and equations which will be beneficial to an operator of an e-commerce web site by increasing gross profit from shipping charges. This shipping charge calculation method may be implemented on select e-commerce store fronts to improve profits without negatively affecting sales. Shipping costs would be calculated on a combination of several factors. For instance, the shipping costs may be based on a weight, order value, and price. This increases revenue for a business because customers are more likely to pay higher shipping costs for relatively expensive items. An interface is provided in an e-commerce system manager with load weight tables, premium tables, base fees, and order values. These tables may also be imported and each store has the ability to use its own costs or use amounts from a global template.

Claims

1. A software module for shipping charge calculation in an electronic commerce system, the software module being operatively configured to calculate a preliminary shipping charge for a purchase order based on weight of a product in the order and a value of the order and to add a base fee to the preliminary shipping charge to generate a final shipping charge.

2. The software module of claim 1 wherein the software module is operatively configured to utilize an algorithm to generate the final shipping charge.

3. The software module of claim 2 wherein the algorithm is described by an equation as follows:

G=OV(lookup)+WT(lookup)

such that the equation determines ground shipping (G) based on the order value (OV) and the product weight (WT) whereby expression OV(lookup) refers to a fee derived from a table based on OV and expression WT(lookup) refers to a fee derived from a table based on WT.

4. The software module of claim 3 wherein the equation further comprises a premium charge (PREMIUMg) resulting in the following equation:

G=OV(lookup)+WT(lookup)+PREMIUMg

whereby the equation is utilized to generate the final shipping charge.

5. The software module of claim 3 wherein the equation further comprises a base fee (BF) resulting in the following equation:

G=BF+OV(lookup)+WT(lookup)

whereby the equation is utilized to generate the final shipping charge.

6. The software module of claim 3 wherein the algorithm is further described by at least one equation as follows:

G=BF+OV(lookup)+WT(lookup)+PREMIUMg 

 

(equation

     1);

2day=G+Delta(2dayCOST−

gCOST)+PREMIUM2day 

 

(equation

     2);

1day=2day+Delta(1dayCOST−

2dayCOST)+PREMIUM1day 

 

(equation

     3);

and

P=1day+Delta(pCOST−

1dayCOST)+PREMIUMp 

 

(equation

     4),

such that the G equation determines ground shipping based on a base fee (BF), OV(lookup), WT(lookup), and a premium charge (PREMIUMg);

the 2day equation determines second day shipping based on G, a second day shipping cost (2dayCOST), a ground shipping charge (gCOST), and a premium charge (PREMIUM2 day);

the 1day equation determines one day shipping based on 2day, a next day shipping cost (1dayCOST), 2dayCOST, and a premium charge (PREMIUM1day); and

the P equation determines priority next day shipping based on 1day, 1dayCOST, a priority charge (pCOST), and a premium charge (PREMIUMp).

7. The software module of claim 2 wherein the algorithm calculates the final shipping charge with variables chosen from a group consisting of:

value lookups, base fee, product weight, ground shipping cost, 2 day shipping cost, 1 day shipping cost, premium shipping cost, premium ground shipping, premium 2 day shipping, premium 1 day shipping, and premium priority shipping.

8. The software module of claim 1 wherein the software module is operatively configured to utilize a bulk import tool such that a user can update a table related to at least one of:

the product weight, the order value, and a shipping cost.

9. The software module of claim 1 wherein the software module is operatively configured to utilize a graphic user interface (GUI) over a network whereby a user can edit settings.

10. The software module of claim 1 wherein the software module is operatively configured to function as a web service utilizing hypertext transfer protocol (HTTP) to convey information over a network.

11. A method for calculating shipping charges in an electronic commerce system, comprising steps of:

calculating a preliminary shipping charge for a purchase order based on weight of a product in the order and a value of the order; and

adding a base fee to the preliminary shipping charge to generate a final shipping charge.

12. The method of claim 11 wherein the calculating step further comprises utilizing an algorithm to generate the final shipping charge.

13. The method of claim 12 wherein the algorithm is described by an equation as follows:

G=OV(lookup)+WT(lookup)

such that the equation determines ground shipping (G) based on the order value (OV) and the product weight (WT) whereby expression OV(lookup) refers to a fee derived from a table based on OV and expression WT(lookup) refers to a fee derived from a table based on WT.

14. The method of claim 13 wherein the equation further comprises a premium charge (PREMIUMg) resulting in the following equation:

G=OV(lookup)+WT(lookup)+PREMIUMg

whereby the equation is utilized to generate the final shipping charge.

15. The method of claim 13 wherein the equation further comprises a base fee (BF) resulting in the following equation:

G=BF+OV(lookup)+WT(lookup)

whereby the equation is utilized to generate the final shipping charge.

16. The method of claim 13 wherein the algorithm is further described by at least one equation as follows:

G=BF+OV(lookup)+WT(lookup)+PREMIUMg 

 

(equation

     1);

2day=G+Delta(2dayCOST−

gCOST)+PREMIUM2day 

 

(equation

     2);

1day=2day+Delta(1dayCOST−

2dayCOST)+PREMIUM1day 

 

(equation

     3);

and

P=1day+Delta(pCOST−

1dayCOST)+PREMIUMp 

 

(equation

     4)

such that the G equation determines ground shipping based on a base fee (BF), OV(lookup), WT(lookup), and a premium charge (PREMIUMg);

the 2day equation determines second day shipping based on G, a second day shipping cost (2dayCOST), a ground shipping charge (gCOST), and a premium charge (PREMIUM2day);

the 1day equation determines one day shipping based on 2day, next day shipping cost (1dayCOST), 2dayCOST, and a premium charge (PREMIUM1day); and

the P equation determines priority next day shipping based on 1day, 1dayCOST, a priority charge (pCOST), and a premium charge (PREMIUMp).

17. The method of claim 11 wherein the algorithm calculates the final shipping charge with variables chosen from a group consisting of:

value lookups, base fee, product weight, ground shipping cost, 2 day shipping cost, 1 day shipping cost, premium shipping cost, premium ground shipping, premium 2 day shipping, premium 1 day shipping, and premium priority shipping.

18. The method of claim 11 wherein the calculating step further comprises utilizing a bulk import tool such that a user can update a table related to at least one of:

the product weight, the order value, and a shipping cost.

19. The method of claim 11 wherein the calculating step further comprises utilizing a graphic user interface (GUI) over a network whereby a user can edit settings.

20. The method of claim 11 further comprising a step of utilizing hypertext transfer protocol (HTTP) to convey information over a network such that shipping charges are calculated using a web service.