ONLINE EXCHANGE SYSTEM AND METHOD WITH REVERSE AUCTION

• US 20100217680A1
• Filed: 02/20/2009
• Published: 08/26/2010
• Est. Priority Date: 02/20/2009
• Status: Active Grant

• Current Assignee: ConsumerCartel, LLC
• Original Assignee: ConsumerCartel, LLC
• Inventors: Fusz, William Ross, Fusz, Eugene A.
• Granted Patent: US 8,438,072 B2
• Time in Patent Office: Days
• US Class Current: 705/26
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/08 Auctions

Abstract

A method of operating an online dynamic-bidding exchange for use in a reverse auction. The exchange includes a server system that includes a database, and a client system coupled to the server system via a communications network. The method includes determining a lowest credible price of a product, and receiving one or more offers to sell the product from a seller and storing the offers to sell in the database, wherein the offers to sell is embodied as a reserve price. The method also includes determining a sales price of the product based on a comparison of the lowest credible price and the competing reserve prices, transmitting the sales price from the server system to the client system, and displaying the sales price to a buyer via the client system.

Claims

1. A method of operating an online dynamic-bidding exchange for use in a reverse auction, the exchange including a server system that includes a database, and a client system coupled to the server system via a communications network, said method comprising:

the server system performing a search over the network and determining a lowest credible price of a product available from one of a plurality of online vendors;

receiving, by the server system, an anonymous offer to sell the product from a seller via the communications network and storing the offer to sell in the database, the offer to sell embodied as a reserve price, wherein an identity of the seller is not displayed to a buyer;

determining, by the server system, a sales price of the product comprising;

comparing the lowest credible price to the reserve price; and

setting the sales price to a value that is greater than the reserve price and less than or equal to the lowest credible price;

transmitting the sales price from the server system to the client system; and

displaying the sales price to the buyer via the client system.

2. A method in accordance with claim 1, wherein using the server system to perform a search to determine a lowest credible price of a product comprises repeatedly performing the search over the communications network to determine the lowest credible price of the product.

3. A method in accordance with claim 1, wherein determining the lowest credible price comprises receiving the lowest credible price from the client system.

4. A method in accordance with claim 1, wherein determining a sales price further comprises:

determining that the reserve price is greater than the lowest credible price; and

setting the sales price equal to the lowest credible price.

5. A method in accordance with claim 1, further comprising determining an allowable bid increment.

6. A method in accordance with claim 5, wherein determining a sales price further comprises:

reducing the lowest credible price by the allowable bid increment;

determining that the reserve price is greater than the reduced lowest credible price; and

setting the sales price equal to the reduced lowest credible price.

7. A method in accordance with claim 5, wherein receiving an offer to sell comprises receiving a plurality of offers to sell from a plurality of sellers, each offer to sell embodied by a reserve price.

8. A method in accordance with claim 7, wherein determining a sales price comprises comparing the reserve prices to the lowest credible price, and comparing the reserve prices to each other.

9. A method in accordance with claim 8, wherein determining a sales price further comprises:

determining that at least two reserve prices are less than or equal to the lowest credible price;

reducing a second lowest reserve price by the allowable bid increment; and

setting the sales price equal to the reduced second lowest reserve price.

10. A method in accordance with claim 8, wherein determining a sales price further comprises:

determining that one reserve price is less than or equal to the lowest credible price; and

setting the sales price equal to the lowest credible price.

11. A method in accordance with claim 8, wherein determining a sales price further comprises:

determining that one reserve price is less than the lowest credible price;

reducing the lowest credible price by the allowable bid increment; and

setting the sales price equal to the reduced lowest credible price.

12. A method in accordance with claim 7, wherein receiving a plurality of offers to sell comprises:

comparing the reserve prices to each other;

determining that a reserve price from a respective seller is equal to a preexisting reserve price received from any of the plurality of sellers; and

requesting a replacement reserve price from the respective seller.

13. A method in accordance with claim 1, further comprising receiving a payment equal to the sales price from the customer, and transmitting an order for the product to the seller for delivery to the customer.

14. A method of operating an online dynamic-bidding exchange for use in a reverse auction, the exchange including a server system that includes a database, and a client system coupled to the server system via a communications network, said method comprising:

receiving, by the server system, a plurality of anonymous offers to sell the product from a plurality of sellers via the communications network, each offer to sell embodied as a respective reserve price;

storing the reserve prices in the database using the server system;

determining, by the server system, a sales price of the product comprising;

comparing the reserve prices to each other; and

setting the sales price to a value between a lowest reserve price and a second lowest reserve price; and

displaying the sales price to a buyer via the client system such that an identity of any of the plurality of sellers is not displayed to the buyer.

15. A method in accordance with claim 14, further comprising determining, by the server system, an allowable bid increment.

16. A method in accordance with claim 15, wherein determining a sales price further comprises:

reducing a second lowest reserve price by the allowable bid increment; and

setting the sales price equal to the reduced second lowest reserve price.

17. A method of operating an online dynamic-bidding exchange for use in a reverse auction, the exchange including a server system that includes a database, and a client system coupled to the server system via a communications network, said method comprising:

determining a lowest credible price of a product;

storing the lowest credible price in the database using the server system;

receiving a plurality of offers to sell the product from a plurality of sellers via the communications network, each offer to sell embodied as a reserve price;

storing the reserve prices in the database using the server system;

determining, using the server system, a sales price of the product comprising;

comparing the reserve prices to each other to determine a lowest reserve price;

comparing the reserve prices to the lowest credible price; and

setting the sales price to a value greater than the lowest reserve price; and

transmitting the sales price to the client system by the server system responsive to a request for a price of the product.

18. A method of operating an online dynamic-bidding exchange for use in a reverse auction, the exchange including a server system that includes a database, and a client system coupled to the server system via a communications network, said method comprising:

performing a search over the network and determining a lowest credible price of a product from one of a plurality of websites known to sell the product;

receiving a plurality of offers to sell the product from a plurality of sellers via the communications network;

storing, by the server, the lowest credible price and the offers to sell in the database;

determining, by the server system, a sales price of the product comprising;

comparing the offers to sell to each other to determine a lowest offer to sell;

comparing the offers to sell to the lowest credible price; and

setting the sales price to the lowest offer to sell; and

displaying, by the client system, the sales price to a buyer.

19. A method in accordance with claim 18, further comprising determining an allowable bid increment.

20. A method in accordance with claim 19, wherein determining a sales price further comprises:

determining that at least one offer to sell is less than or equal to the lowest credible price; and

setting the sales price equal to the lowest offer to sell.

21. (canceled)

22. An online dynamic-bidding exchange for use in a reverse auction, said exchange comprising:

a client system;

a database for storing information; and

a server system coupled to said client system and said database via a communications network, said server system configured to;

perform a search over said communications network and to determine a lowest credible price of a product available from one of a plurality of online vendors;

receive a plurality of anonymous offers to sell the product from a plurality of sellers via said communications network, each offer to sell embodied as a reserve price;

compare the reserve prices to each other to determine a lowest reserve price;

compare the lowest credible price and the reserve prices;

set a sales price of the product to a value that is between the lowest credible price and the lowest reserve price or a value that is equal to the lowest credible price; and

transmit the sales price to said client system for display to a customer such that an identity of any of the plurality of sellers is not displayed.

23. An exchange in accordance with claim 22, wherein said server system is configured to repeatedly perform the search over said communications network to determine the lowest credible price of the product.

24. An exchange in accordance with claim 22, wherein said communications network comprises the Internet.

25. An exchange in accordance with claim 22, wherein said server system is configured to receive the lowest credible price from said client system.

26. An exchange in accordance with claim 22, wherein said server system is configured to:

determine that one reserve price is less than or equal to the lowest credible price; and

set the sales price equal to the lowest credible price.

27. An exchange in accordance with claim 22, wherein said server system is configured to determine an allowable bid increment.

28. An exchange in accordance with claim 27, wherein said server system is configured to:

compare each reserve price to the lowest credible price;

determine that each reserve price is greater than the lowest credible price;

reduce the lowest credible price by the allowable bid increment; and

set the sales price equal to the reduced lowest credible price.

29. An exchange in accordance with claim 27, wherein said server system is configured to:

determine that at least two reserve prices are less than or equal to the lowest credible price;

reduce a second lowest reserve price by the allowable bid increment; and

set the sales price equal to the reduced second lowest reserve price.

30. An exchange in accordance with claim 27, wherein said server system is configured to:

determine that one reserve price is less than or equal to the lowest credible price;

reduce the lowest credible price by the allowable bid increment; and

set the sales price equal to the reduced lowest credible price.

31. An exchange in accordance with claim 22, wherein said server system is configured to:

determine that a reserve price from a respective seller is equal to a preexisting reserve price received from any of the plurality of sellers; and

request a replacement reserve price from the respective seller.

32. An exchange in accordance with claim 22, wherein said server system is configured to receive a payment equal to the sales price from the customer, and transmit an order for the product to the seller for delivery to the customer.

33. An online dynamic-bidding exchange for use in a reverse auction, said exchange comprising:

a client system;

a database for storing information; and

a server system coupled to said client system and said database via a communications network, said server system configured to;

determine a lowest credible price of a product;

receive a plurality of offers to sell the product from a plurality of sellers via said communications network, each offer to sell embodied as a reserve price;

compare the reserve prices to each other to determine a lowest reserve price;

compare the reserve prices to the lowest credible price;

set the sales price to a value greater than the lowest reserve price; and

transmit the sales price to said client system.

34. An online dynamic-bidding exchange for use in a reverse auction, said exchange comprising:

a client system configured to display a sales price of a product to a customer;

a database for storing information; and

a server system coupled to said client system and said database via a communications network, said server system configured to;

perform a search over said communications network and to determine a lowest credible price of the product available from one of a plurality of websites known to sell the product;

receive a plurality of offers to sell the product from a plurality of sellers via said communications network;

compare the offers to sell to each other;

compare the offers to sell to the lowest credible price;

if a lowest offer to sell is less than the lowest credible price, set the sales price of the product to the lowest offer to sell; and

if a lowest offer to sell is greater than or equal to the lowest credible price, set the sales price of the product to the lowest credible price.