Method and system for grouping merchandise, services and users and for trading merchandise and services

• US 7,729,977 B2
• Filed: 08/15/2006
• Issued: 06/01/2010
• Est. Priority Date: 08/17/2005
• Status: Active Grant

• Current Assignee: Meimei Zhao, Quan Xiao
• Original Assignee: Meimei Zhao, Quan Xiao
• Inventors: Xiao, Quan, Zhao, Meimei
• Primary Examiner(s): Havan; Thu Thao
• Application Number:
  US11/504,339
• Publication Number:
  US 20070043651A1
• Time in Patent Office: 1,386 Days
• Field of Search: 705 37- 38
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

This method groups multiple merchandises (products/services) and multiple traders (buyer/sellers/carriers) that share similar properties with a Merchandise Group ID (MGID) and a User Group ID (UGID), respectively. Each MGID and UGID represents one Merchandise Group and Trader Group, respectively. Different MGIDs and UGIDs represent different merchandise and trader groups. The method also utilize a multi-party matching mechanism to trade Merchandise Groups among Trader Groups by having grouped buyers/sellers/carriers place bid/ask/cAsk offers on both the merchandise and any shipping services required to fulfill the transaction. Based on offers received, the system calculates Gap Values in real-time to determine if deals can be closed. Like stock tickers, MGID enables grouped merchandise to be traded like stocks. UGID enables grouped traders to trade desired merchandise with acceptable counterparties through matching both MGIDs and UGIDs. Based on the grouping, matching and gap value calculating mechanism, this method changes “Instance Trading” into “Group Trading”.

Claims

1. A method in a system for grouped sellers to sell grouped merchandise to grouped buyers via a merchandise trading system, the method comprising the steps of:

a) defining by at least one buyer a set of buyer characteristics to offer, defining a set of acceptable seller characteristics to require and a set of acceptable merchandise characteristics for a desired merchandise item;

b) defining by at least one seller a set of seller characteristics to offer, defining a set of acceptable buyer characteristics to require and a set of merchandise characteristics for an offered merchandise item;

c) defining by the merchandise trading system the buyer characteristics, the seller characteristics and the merchandise characteristics;

d) grouping the buyers based upon the sets of buyer characteristics, the buyer characteristics may be encoded into a code which can later be used as identifier of the certain buyer group whose member buyers have the same sets of buyer characteristics;

e) grouping the sellers based upon the sets of seller characteristics, the seller characteristics may be encoded into a code which can later be used as identifier of the certain seller group whose member sellers have the same sets of seller characteristics;

f) grouping merchandise items based upon the sets of merchandise characteristics, the merchandise characteristics may be encoded into a code that can later be used as identifier of the certain merchandise group whose member merchandise have the same sets of merchandise characteristics;

g) comparing the sets of merchandise characteristics of the seller'"'"'s offered merchandise against the set of acceptable merchandise characteristics by the buyer so as to determine a merchandise match between buyer'"'"'s desired merchandise item and seller'"'"'s offered merchandise item;

comparing the buyer'"'"'s sets of offered buyer characteristics and the acceptable seller characteristics against the seller'"'"'s acceptable buyer characteristics and the sets of offered seller characteristics, respectively, so as to determine a buyer/seller match between buyer and seller;

i) if there is a merchandise match and, a buyer/seller match processing the sale transactions on the basis of a gap price, a deal match, or an order generation between the buyer and the seller; and

j) trading from the seller to the buyer by shipping the merchandise to the buyer from the seller if there is a merchandise match and a buyer/seller match.

2. The method of claim 1 wherein the set of acceptable merchandise characteristics by the buyer includes a bid price, the set of merchandise characteristics by the seller includes an ask price, the method further comprising calculating by the merchandise trading system a gap price, subtracting the bid price from the ask price, and dividing the gap price between the buyer and the seller.

3. The method of claim 1 further comprising transporting by shipping carriers the merchandise from the seller to the buyer, defining by at least one carrier a set of carrier characteristics and defining by the merchandise trading system the carrier characteristics and comparing the set of acceptable merchandise characteristics by the buyer, the sets of merchandise characteristics by the seller and by the trading system and the sets of carrier characteristics so as to determine a match between the buyer'"'"'s desired merchandise item, seller'"'"'s offered merchandise item and the carrier'"'"'s offered shipping services.

4. The method of claim 3 further comprising including in the set of acceptable merchandise characteristics by the buyer the buyer'"'"'s shipping requirements, including in the set of merchandise characteristics by the seller the seller'"'"'s shipping requirements, and including in the carrier characteristics the characteristics and price of the offered shipping service.

5. The method of claim 4 further including the step of adding the shipping price to the ask price and subtracting the bid price to result in the gap price, and the gap price may be further divided between the buyer, the seller, the carrier, and the trading system according to a distribution ratio among the buyer, seller and carrier.

6. The method of claim 5 further comprising shipping the merchandise to complete the transaction from the seller to the buyer, associating the transaction with a final fee, calculating the final fee by adding to the gap price all fees associated with the transaction including the shipping price, a commission price and a tax price, and subtracting from the gap price all discount fees associated with the transaction including, coupons and store credit, and dividing the final gap price according to a distribution ratio among the buyer, seller and carrier.

7. The method of claim 1 further comprising grouping buyers, grouping sellers, grouping merchandise, shipping by the carriers the merchandise and providing the carriers the characteristics of the grouped buyers, grouped sellers and grouped merchandise and holding an auction among the carriers to compete to provide the shipping services of the merchandise between the sellers and the buyers.

8. The method of claim 1 further comprising including the buyer'"'"'s characteristics of how much money the buyer is willing to place as a down payment and including the seller'"'"'s acceptable buyer characteristics of a down payment requirement by the seller.

9. The method of claim 1 further compromising providing buyer characteristics and seller characteristics, providing by the merchandise trading system the statistics of previous history of transaction behavior and feedback rating from counter parties, and including the merchandise characteristics ratings from users or other third party sources, and double-rating and weighting from the users and merchandise to determine the reputation and creditability of a rater.

10. The method of claim 1 further comprising choosing the buyer'"'"'s acceptable merchandise characteristics or the seller'"'"'s merchandise characteristics including a future execution time of the transaction.

11. The method of claim 1 wherein the seller is a service provider and buyer is a service receiver, wherein the merchandise is a service and comprises one of the following services:

a shipping service, a communication service, a media service, a news service, an entertainment service, an advertisement, a healthcare service, or a brokerage service.

12. A merchandise trading system for allowing grouped sellers to sell grouped merchandise to grouped buyers via a merchandise trading system, the system comprising:

a) at least one database server;

b) a central application server;

c) a user database for receiving and storing from at least one buyer a set of buyer characteristics, a set of acceptable seller characteristics and a set of acceptable merchandise characteristics for a desired merchandise item and for receiving and storing from at least one seller a set of seller characteristics, a set of acceptable buyer characteristics, and for receiving and storing from the database server further buyer characteristics and seller characteristics for the at least one buyer and at least one seller,

d) a merchandise database for receiving and storing from the at least one seller a set of merchandise characteristics and receiving and storing from the trading system a set of merchandise characteristics;

e) an offer/order database for receiving and storing from the at least one seller characteristics of an offer for an offered merchandise item and for receiving and storing from the at least one buyer characteristics of an offer for a desired merchandise item;

f) the central application server having program code to group buyers based upon the sets of buyer characteristics, to group the sellers based upon the sets of seller characteristics, to group merchandise items based upon the sets of merchandise characteristics, to compare the sets of merchandise characteristics of the seller'"'"'s offered merchandise against the set of acceptable merchandise characteristics by the buyer so as to determine a match between buyer'"'"'s desired merchandise item and seller'"'"'s offered merchandise item, to compare the buyer'"'"'s sets of buyer characteristics and the acceptable seller characteristics against the seller'"'"'s acceptable buyer characteristics and the sets of seller characteristics, respectively, so as to determine a match between buyer and seller, and if there is a match between buyer'"'"'s desired merchandise item and seller'"'"'s offered merchandise item and a match between the buyer and seller, trying to bind a contract and to complete a sale transaction between the buyer and the seller by trading from the seller to the buyer by shipping the merchandise to the buyer from the seller if there is a merchandise match and a buyer/seller match.

13. The merchandise trading system of claim 12 wherein the set of acceptable merchandise characteristics by the buyer includes bid price, the set of merchandise characteristics by the seller includes an ask price, the central application server having program code for calculating a gap price by subtracting the bid price from the ask price and for dividing the gap price between the buyer and the seller, and for using the gap price to determine if the requirement of issuing a transaction contract to bind the buyer, seller and carrier has been met, and for dividing the gap price between the buyer and seller.

14. The merchandise trading system of claim 12 further comprising a shipping service database for receiving/retrieving and storing from at least one carrier a set of carrier characteristics and from the central application server further carrier characteristics wherein the central application server further has program code for comparing the set of acceptable merchandise characteristics by the buyer, the merchandise characteristics by the seller and the carrier characteristics so as to determine a match between the buyer'"'"'s desired merchandise item, seller'"'"'s offered merchandise item and the carrier.

15. The merchandise trading system of claim 14 wherein the set of acceptable merchandise characteristics by the buyer includes buyer'"'"'s shipping requirements, the set of merchandise characteristics by the seller includes the seller'"'"'s shipping requirements, and the carrier characteristics includes the characteristics and price of the offered shipping service.

16. The merchandise trading system of claim 15 wherein the central application server further has program code for adding the shipping price to the asking price and subtracting the bid price to result in a gap price, and the central application server further uses the gap price to determine if the requirement of issuing a transaction contract to bind the buyer, seller and carrier has been met, and the said gap price being divided between the buyer, the seller and the carrier.

17. The merchandise trading system of claim 16 wherein the completed transaction to ship the merchandise from seller to the buyer is associated with a final fee, and wherein the central application server further has program code for calculating the final fee by adding to the gap price fees associated with the transaction including a shipping price, a commission price and a tax price, and for subtracting from the gap price discount fees associated with the transaction including coupons and store credit.

18. The merchandise trading system of claim 12 further comprising carriers to ship the merchandise, wherein the central application server further has program code for providing the carriers the characteristics of the grouped buyers, grouped sellers and grouped merchandise, and for holding an auction among the carriers to compete to provide the shipping services of the merchandise between the sellers and the buyers.

19. The merchandise trading system of claim 12 wherein the buyer'"'"'s buyer characteristics include the characteristic of how much money the buyer is willing to place as a down payment and the seller'"'"'s acceptable buyer characteristics include the down payment requirement by the seller.

20. The merchandise trading system of claim 12 wherein the buyer characteristics and seller characteristics provided by the merchandise trading system include the statistics of previous history of transaction behavior and feedback rating from counter parties, and further wherein the merchandise characteristics include ratings from users or other third party sources, and further wherein the rating for users and merchandise are double-ranked to determine the effectiveness of the rating being weightened by the creditability of a rater.

21. The merchandise trading system of claim 12 wherein the buyer'"'"'s acceptable merchandise characteristics or the seller'"'"'s merchandise characteristics includes an option of future execution time of the transaction.

22. The merchandise trading system of claim 12 wherein the seller is a service provider and buyer is a service receiver and further wherein the merchandise comprises the following services:

a shipping service, a communication service, a media service, a news service, an entertainment service, an advertisement service, a healthcare service, or a brokerage service.

23. A computer readable medium for allowing grouped sellers to sell grouped merchandise to grouped buyers via a merchandise trading system, the computer readable medium comprising program instructions for:

a) in a user database, for receiving and storing from at least one buyer a set of buyer characteristics, a set of acceptable seller characteristics and a set of acceptable merchandise characteristics for a desired merchandise item and for receiving and storing from at least one seller a set of seller characteristics, a set of acceptable buyer characteristics, and for receiving from the database server further buyer characteristics and seller characteristics for the at least one buyer and at least one seller;

b) in a merchandise database, for receiving and storing from the at least one seller a set of merchandise characteristics and receiving and storing from the trading system a set of merchandise characteristics;

c) in an offer/order database, for receiving and storing from the at least one seller characteristics of an offer for an offered merchandise item and for receiving and storing from the at least one buyer characteristics of an offer for a desired merchandise item;

d) in the central application server, to group the buyers based upon the sets of buyer characteristics, to group the sellers based upon the sets of seller characteristics, to group merchandise items based upon the sets of merchandise characteristics, to compare the set of merchandise characteristics of the seller'"'"'s offered merchandise against the set of acceptable merchandise characteristics by the buyer so as to determine a merchandise match between buyer'"'"'s desired merchandise item and seller'"'"'s offered merchandise item, to compare the buyer'"'"'s sets of buyer characteristics and the acceptable seller characteristics against the seller'"'"'s acceptable buyer characteristics and the sets of seller characteristics, respectively, so as to determine a buyer/seller match between buyer and seller, and if there is a merchandise match and a buyer/seller match to bind a contract and to complete a sale transaction between the buyer and the seller by trading from the seller to the buyer by shipping the merchandise to the buyer from the seller if there is a merchandise match and a buyer/seller match.

24. The computer readable medium of claim 23 wherein the set of acceptable merchandise characteristics by the buyer includes a bid price, the set of merchandise characteristics by the seller includes an ask price, the central application server having program code for calculating a gap price by subtracting the bid price from the ask price and for dividing the gap price between the buyer and the seller, using the gap price to determine if the requirement of issuing a transaction contract to bind the buyer, seller and carrier has been met, and dividing the gap price between the buyer and seller.

25. The computer readable medium of claim 23 further comprising program instructions, in a shipping service database, for receiving/retrieving and storing from at least one carrier a set of carrier characteristics and from the central application server further carrier characteristics, for comparing the set of acceptable merchandise characteristics by the buyer, the merchandise characteristics by the seller and by the trading system and the carrier characteristics so as to determine a match between the buyer'"'"'s desired merchandise item, seller'"'"'s offered merchandise item and the carrier.

26. The computer readable medium of claim 25 wherein the merchandise comprises an offered shipping service, the set of acceptable merchandise characteristics by the buyer includes buyer'"'"'s shipping requirements, the set of merchandise characteristics by the seller includes the seller'"'"'s shipping requirements, and the carrier characteristics includes the characteristics and price of the offered shipping service.

27. The computer readable medium of claim 26 further having program instructions, in the central application server, for adding the shipping price to the asking price and subtracting the bid price to result in a gap price, using the gap price to determine if the requirement of issuing a transaction contract to bind the buyer, seller and carrier has be met, and dividing the gap price between the buyer, the seller and the carrier.

28. The computer readable medium of claim 27 wherein the completed transaction to move the merchandise from seller to the buyer is associated with a final fee, and wherein, in the central application server, the computer readable medium further comprises program instructions for calculating the final fee by adding to the gap price fees associated with the transaction including the shipping price, a commission price and a tax price, and for subtracting from the gap price discount fees associated with the transaction including coupons and store credit.

29. The computer readable medium of claim 23 further comprising, in the central application server, having program instructions for providing carriers to ship the merchandise, the characteristics of the grouped buyers, grouped sellers and grouped merchandise, and for holding an auction among the carriers to compete to provide the shipping services of the merchandise between the sellers and the buyers.

30. The computer readable medium of claim 23 wherein the buyer'"'"'s buyer characteristics include the characteristic of how much money the buyer is willing to place as a down payment, and the seller'"'"'s acceptable buyer characteristics include the down payment requirement by the seller.

31. The computer readable medium of claim 23 wherein the buyer characteristics and seller characteristics provided by the merchandise trading system include the statistics of previous history of transaction behavior and feedback rating from counter parties, and further wherein the merchandise characteristics include ratings from users or other third party sources, and further wherein the ratings for users and merchandise are double-ranked to determine the effectiveness of the ratings as being weightened by the creditability of a rater.

32. The computer readable medium of claim 23 wherein the buyer'"'"'s acceptable merchandise characteristics or the seller'"'"'s merchandise characteristics both include an option of future execution time of the transaction.

33. The computer readable medium of claim 23 wherein the seller is a service provider and buyer is a service receiver and further wherein the merchandise is a shipping service, a communication service, a media service, a news service, an entertainment service, an advertisement service, a healthcare service, or a brokerage service.