Internet-based auction method

• US 7,024,376 B1
• Filed: 06/30/2000
• Issued: 04/04/2006
• Est. Priority Date: 07/02/1999
• Status: Expired due to Fees

• Current Assignee: Henry C. Yuen
• Original Assignee: Henry C. Yuen
• Inventors: Yuen, Henry C.
• Primary Examiner(s): Smith, Jeffrey A.
• Application Number:
  US09/607,606
• Time in Patent Office: 2,104 Days
• Field of Search: 705/26, 705/27, 705/37, 705/38, 705/80, 705/400, 455/4.2
• US Class Current: 705/26.3
• CPC Class Codes: G06Q 30/0623 Item investigation
• CPC Class Codes: G06Q 30/08 Auctions

Abstract

A method and system enable users to purchase goods and services at an optimal price using a reverse auction process. The preferred approach incorporates two phases: first, the process determines the most favorable advertised price for the item sought, based on a search and review of multiple vendors offering the item for sale. Second, the process negotiates a sale price lower than the most favorable advertised price by soliciting bids from multiple vendors of the item, where each bid represents an offer for sale of the item at a price lower than the most favorable advertised price. The purchaser selects a bid received from the pool of vendors, and the process generates a purchase order to the vendor corresponding to the selected bid for the item.

Claims

1. A method of purchasing goods and services over the Internet, comprising the steps of:

obtaining a posted price associated with the goods and services from a first set of multiple vendors over the Internet;

determining a lowest posted price of the posted prices obtained in the previous step;

submitting a starting bid over the Internet which is lower than the lowest posted price;

collecting one or more reverse bids from a second set of multiple vendors over the Internet, wherein each reverse bid represents a price which is lower than the starting bid;

selecting a final bid from among the reverse bids; and

purchasing the goods or services using the final bid.

2. The method of claim 1, wherein the step of obtaining a posted price includes conducting a search over the Internet including the use of an existing search engine.