Individualized, real-time, interactive e-commerce auction

• US 6,606,607 B1
• Filed: 06/17/1999
• Issued: 08/12/2003
• Est. Priority Date: 06/17/1999
• Status: Expired due to Fees

• Current Assignee: MCJ Ventures Incorporated
• Original Assignee: MCJ Ventures Incorporated
• Inventors: Martin, Sam, Anders, Constance J.
• Primary Examiner(s): Kazimi, Hani M.
• Application Number:
  US09/334,838
• Time in Patent Office: 1,517 Days
• Field of Search: 705/37, 705/35, 705/36, 705/26, 705/27, 705/1, 705/400, 705/80
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0611 Request for offers or quotes
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A real-time, interactive auction process for use in electronic commerce includes buyer and administrator interfaces coupled to a central controller via a global information network. The central controller processes and stores customer and product information as well as offer (acceptable price) information and order (bid) information. Each product is assigned a minimum acceptable price (MAP) as well as a virtual minimum acceptable price (VMAP). The VMAP is always greater than MAP and is assigned one of three parameters, loose, medium, or tight. The VMAP is generated randomly within a loose, medium, or tight range of the MAP. The bidder can submit as many as three bids with counter offers made to the first two bids. If the third bid is declined, the bidder is locked out of the bidding process.

Claims

1. An auction method for use in e-commerce where an administrator of the auction is connected to a bidder by means of a global information network, said method comprising the steps of:

assigning a minimum acceptable price (MAP) to a product based upon the cost of the product and a manufacturer'"'"'s suggested retail price (MSRP) for the product, where MSRP>

MAP;

calculating a virtual minimum acceptable price (VMAP) for the product, where VMAP is a randomly calculated percent greater than MAP for the product, and wherein VMAP is calculated by assigning a tight, medium or loose bidding range for the product, with VMAP having a tight bidding range assigned a value X% greater than MAP, VMAP having a medium bidding range assigned a value Y% greater than MAP, and VMAP having a loose bidding range assigned a value Z% greater than MAP, where X>

Y>

Z;

receiving an offer for a product from a bidder via the global information network;

comparing the offer with VMAP and MSRP;

determining the number of offers by said bidder for said product within a predetermined time period;

declining said offer and preventing the buyer from bidding on said product for said predetermined time period if the offer is the buyer'"'"'s third offer within said predetermined time period and is less than VMAP;

accepting the offer if the offer is equal to or less than MSRP or assigning MSRP as the agreed upon price if the offer is greater than MSRP;

or

calculating and providing a counter offer to the buyer if the offer is the bidder'"'"'s first or second offer within said predetermined time period and is less than VMAP, wherein said counter offer is between VMAP and MSRP.

2. The method.of claim 1 wherein:

X=10-15% greater than MAP,

Y=6-10% greater than MAP, and

Z=0-6% greater than MAP.

3. The method of claim 1 further providing an indication to the bidder of a declining of an offer where the offer is the bidder'"'"'s third or more offer for the product within said predetermined time period.

4. The method of claim 1 wherein said predetermined time period is 1 hour.

5. The method of claim 1 further comprising the step of receiving a request for product information from a bidder and providing information relating to a product to the bidder.

6. The method of claim 1 further comprising the step of verifying that the bidder is registered with the administrator before permitting the bidder to enter an offer.

7. The method of claim 1 further comprising the step of calculating shipping costs and sales tax for the sale of a product in accordance with the zip codes of the location from which the product is to be shipped as well as the destination of the product and the state of residence of the bidder.

8. The method of claim 1 wherein said counter offer is equal to $\left[1-\frac{\mathrm{Offer}}{\mathrm{VMAP}}\right]$

[MSRP-VMAP]+VMAP