Method and system for creating and managing groups for increasing buying power on the world wide web

• US 7,146,330 B1
• Filed: 02/03/2000
• Issued: 12/05/2006
• Est. Priority Date: 02/08/1999
• Status: Expired due to Term

• Current Assignee: Intellectual Ventures Fund 81 LLC (Intellectual Ventures LLC)
• Original Assignee: Vulcan Portals Incorporated
• Inventors: Alon, Amir, Judkiewicz, Ilan
• Primary Examiner(s): FADOK, MARK A
• Application Number:
  US09/497,373
• Time in Patent Office: 2,497 Days
• Field of Search: 705/26, 705/27, 705/80
• US Class Current: 705/26.35
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 30/0611 Request for offers or quotes
• CPC Class Codes: G06Q 30/0613 Third-party assisted

Abstract

A method and system are provided for using a computer to facilitate a sales transaction between a group of buyers and at least one seller. Potential buyers may create a group organized for purchasing a product/service from one or more sellers. The computer system may output the buyers'"'"' collective request for the product/service to one or more sellers of the requested item. The sellers may respond by providing a price quotation for the requested item, often on the basis of the number of such items to be purchased by the group. The computer system notifies group members of the submitted seller quotations, in response to which some buyers may commit themselves to purchasing the item at the specified price or otherwise indicating a price at which they would be willing to commit to purchasing the item. Sellers may review the price quotations submitted by other sellers and submit competing price quotations. In a typical arrangement, an iterative process ensues in which sellers offer lower and lower prices for the requested products/services until reaching a point at which one or more buyers in the group are sufficiently comfortable with the price to commit themselves to purchasing the product/service.

Claims

1. A method for using a computer to facilitate a sales transaction for purchasing a product/service by a group of buyers from a seller of a plurality of sellers, comprising:

receiving into the computer requests to purchase the product/service by buyers of the group;

forming a collective request for purchase of the product/service based upon the received buyer requests to purchase the product/service;

sending the collective request to a plurality of sellers;

receiving by an agent entity a suggested price quotation for the product/service from the a plurality of the sellers;

automatically providing by the agent entity each received suggested price quotation to at least a plurality of the sellers for review, wherein the agent entity is an agent of the group of buyers;

receiving by the agent entity another suggested price quotation for the product/service from at least one of the plurality of sellers;

receiving purchase authorization to complete a sale from at least one buyer in the group to buy the product/service from any seller that has provided a suggested price quotation for the product/service.

2. The method of claim 1 wherein the agent entity is one of a buyer in the group or the group.

3. The method of claim 1, further comprising:

collecting payment information from the at least one buyer in the group from whom the purchase authorization was received; and

sending the payment information to the seller associated with the sale.

4. The method of claim 3 wherein the payment information is in the form of a credit card number for the at least one buyer in the group who is interested in buying the product/service.

5. The method of claim 1, further comprising:

providing a setup tool that facilitates receiving group buy setup characteristics data that includes at least one of price targets for the product/service, buyer deadlines for joining the group, and buyer deadlines for receiving purchase authorization.

6. The method of claim 1 wherein the computer is connected to an electronic network and wherein the received requests to purchase the product/service are received over the electronic network.

7. The method of claim 6 wherein the electronic network is at least one of the World Wide Web, the Internet, or an intranet.

8. The method of claim 6 wherein the received requests to purchase the product/service are received in a secured format.

9. The method of claim 1 wherein the computer is connected to an electronic network and wherein the received suggested price quotation for the product/service is received over the electronic network.

10. The method of claim 1, further comprising:

providing the agent entity with pre-negotiated prices for the product/service from any seller that has provided a suggested price quotation for the product/service.

11. The method of claim 1 wherein notifying the agent entity of the received suggested price quotation comprises sending a message to the agent entity in a format of at least one of an e-mail message, an Internet immediate message, a voice message, a beeper message, or a facsimile message.

12. A method for using a computer to facilitate a sales transaction for purchasing a product/service by a group of buyers from at least one seller, comprising:

verifying that a plurality of buyers in the group satisfy a predetermined requirements list that requires a plurality of buyers in the group to have a common employer, wherein the common employer is independent of the seller;

receiving into the computer buyer requests to purchase the product/service by verified buyers of the group;

forming a collective request for purchase of the product/service based upon the received buyer requests to purchase the product/service;

sending the collective request to the at least one seller;

receiving a suggested price quotation for the product/service from the at least one seller;

notifying an agent entity of the received suggested price quotation; and

receiving purchase authorization from at least one verified buyer in the group to buy the product/service at the received suggested price quotation.

13. The method of claim 12 wherein sending the collective request to the at least one seller further comprises a price reduction request for the product/service based on a number of buyers in the group.

14. The method of claim 13 wherein the price reduction request further includes a preexisting group discount rate of the at least one seller.

15. The method of claim 12 wherein the received suggested price quotation is based on a number of buyers in the group.

16. The method of claim 12, further comprising:

receiving into the computer a group buy setup characteristics data set that includes at least one of price targets for the product/service, buyer deadlines for joining the group, buyer deadlines for submitting purchase authorization, and deadlines for dosing the sales transaction.

17. The method of claim 12 wherein verifying that buyers in the group satisfy a requirements list comprises:

determining that user names and passwords received from buyers match user names and passwords associated with the common employer in the requirements list.

18. A method for using a computer to facilitate a sales transaction for purchasing a product/service from a seller, comprising:

receiving from a seller at least one of an agreed price for the product/service or a price reduction for the product/service for at least one group size;

receiving into the computer requests to purchase the product/service by buyers, the buyers collectively forming a group, the computer configured to receive the requests to purchase the product/service after receiving from the at least one seller the agreed price or the price reduction;

monitoring the group to determine if the group has attained the at least one group size;

providing buyer payment information to the seller if the group attains the at least one group size;

automatically providing by the agent entity to a plurality of other sellers for review the at least one of an agreed price for the product/service or the price reduction for the product/service for at least one group size received from the at least one seller, wherein the agent entity is independent of the seller and the plurality of other sellers;

receiving another agreed price or price reduction for the product/service from one of the plurality of other sellers; and

notifying buyers in the group of the received another agreed price.

19. The method of claim 18, further comprising:

requesting the at least one seller to honor the at least one of an agreed price for the product/service or the price reduction for the product/service for the at least one group size.

20. The method of claim 18, further comprising:

collecting payment information from buyers in the group who have submitted requests to purchase the product/service.

21. The method of claim 20 wherein the payment information is in the form of a credit card number for each buyer of the buyers in the group who are interested in buying the product/service.

22. A method for using a computer to facilitate a sales transaction for purchasing a product/service from a seller, comprising:

receiving from at least one seller at least one of an agreed price for the product/service or a price reduction for the product/service for at least one group size;

receiving into the computer requests to purchase the product/service by prospective buyers;

verifying that each prospective buyer satisfies a requirements list before including the prospective buyer in a buying group, the requirements list including a requirement that a plurality of buyers in the group have a common employer, wherein the common employer is independent of the seller;

monitoring the buying group to determine if the buying group has attained the at least one group size; and

providing payment information to the at least one seller if the group attains the at least one group size.

23. The method of claim 22, further comprising:

receiving into the computer group buy setup characteristics data that includes at least one of buyer deadlines for joining the group, buyer deadlines for submitting purchase authorization, and deadlines for closing the sales transaction.

24. The method of claim 22, further comprising:

providing a setup tool that facilitates receiving group buy setup characteristics data that includes at least one of buyer deadlines for joining the group and buyer deadlines for receiving purchase authorization.

25. The method of claim 22 wherein the computer is connected to an electronic network and wherein the received requests to purchase the product/service are received over the electronic network.

26. The method of claim 22 wherein the electronic network is at least one of the World Wide Web, the Internet, or an intranet.

27. The method of claim 26 wherein the received requests to purchase the product/service are received in a secured format.

28. The method of claim 22 wherein the computer is connected to an electronic network and wherein the payment information is provided to the at least one seller over the electronic network.

29. The method of claim 22, further comprising:

notifying at least one buyer in the group that the group has attained the at least one group size.

30. The method of claim 29 wherein the buyer in the group is notified via at least one of an e-nail message, an Internet immediate message, a voice message, a beeper message, and a facsimile message.

31. A system for facilitating a sales transaction for the purchase of a product/service by a group of buyers from at least one seller, comprising:

a purchase request receiver configured to receive a request to purchase the product/service by at least one buyer of the group, and to restrict buyers in the group to buyers matching a predetermined requirements list that requires a plurality of buyers in the group to have a common employer, wherein the common employer is independent of the seller;

a collective request former configured to form a collective request for the purchase of the product/service based upon the received requests to purchase the product/service;

a transmitter configured to send the collective request to the at least one seller;

a price quotation receiver configured to receive a suggested price quotation for the product/service from the at least one seller; and

a price quotation notifier configured to notify an agent entity of the received suggested price quotation.

32. The system of claim 31 wherein the agent entity is at least one buyer in the group and wherein the price quotation notifier is further configured to receive purchase authorization from the at least one buyer in the group who is interested in buying the product/service at the received suggested price quotation.

33. The system of claim 31, further comprising:

a payment collector configured to collect payment information from the buyers in the group who are interested in buying the product/service at the received suggested price quotation and send the collected payment information to the at least one seller.

34. The system of claim 33 wherein the payment collector processes payment information in the form of a credit card number for the buyers in the group who are interested in buying the product/service.

35. The system of claim 31 wherein the price quotation notifier is further configured to notify the agent entity of a received another suggested price quotation if the price quotation receiver receives another suggested price quotation for the product/service from at least another seller.

36. The system of claim 31, further comprising:

a price quotation repository that allows at least another seller to review the received price quotation for the product/service from the at least one seller.

37. The system of claim 31 wherein the collective request former is further configured to form the collective request for the purchase of the product/service to include a price reduction request for the product/service based on a number of buyers in the group.

38. The system of claim 37 wherein the price reduction request further includes a preexisting group discount rate of the at least one seller.

39. The system of claim 31 wherein the collective request former includes a number of buyers in the group in the collective request.

40. The system of claim 31, further comprising:

a setup tool configured to establish group buy setup characteristics data that includes at least one of price targets for the product/service, buyer deadlines for joining the group, buyer deadlines for receiving purchase authorization, and deadlines for closing the sales transaction.

41. The system of claim 31 wherein the purchase request receiver is connected to an electronic network and wherein the purchase request receiver receives requests to purchase the product/service over the electronic network.

42. The system of claim 41 wherein the electronic network is at least one of the World Wide Web, the Internet, or an intranet.

43. The system of claim 41 wherein the purchase request receiver is further configured to receive requests to purchase the product/service in a secured format.

44. The system of claim 31 wherein the price quotation receiver is connected to an electronic network and wherein the price quotation receiver receives suggested price quotations for the product/service over the electronic network.

45. The system of claim 31, further comprising:

a purchase database configured to provide the buyers of the group with pre-negotiated prices for the product/service from the at least one seller.

46. The system of claim 31 wherein the price quotation notifier is further configured to notify at least one buyer in the group of the received suggested price quotation by preparing a message to the buyer in a format of at least one of an e-mail message, Internet immediate message, voice message, beeper message, and facsimile message.

47. A system for facilitating a sales transaction for the purchase of a product/service from a seller comprising:

a memory configured to retain an agreed price for the product/service from a first seller or a price reduction for the product/service for a specific quantity of the product/service from the first seller;

a communications interface configured to be used by an agent entity to automatically provide to a plurality of other sellers for review an agreed price for the product/service from the first seller or a price reduction for the product/service for a specific quantity of the product/service from the first seller, wherein the agent entity is independent of the sellers, wherein the memory is further configured to retain another suggested price quotation for the product/service from another seller of the plurality of other sellers;

a price notifier configured to notify each of the buyers in the group of the another suggested price quotation;

a purchase request receiver configured to receive requests to purchase the product/service by buyers, the purchase request receiver configured to receive the requests to purchase the product/service after receiving the agreed price or the price reduction;

a group monitor configured to monitor the group to determine if the group has attained a pre-determined group size; and

a payment provider configured to provide payment information to the first seller if the group monitor indicates that the group has attained the pre-determined group size.

48. The system of claim 47, further comprising:

a sale manager configured to request the first seller to honor the at least one of an agreed price for the product/service or the price reduction for the product/service for the at least one group size.

49. The system of claim 47, further comprising:

a payment collector configured to collect payment information from buyers in the group who have submitted requests to purchase the product/service.

50. The method of claim 49 wherein the payment information is in the form of a credit card number for each buyer in the group who is interested in buying the product/service.

51. The system of claim 47 in which the purchase request receiver is configured to restrict buyers in the group to buyers matching a requirements list.

52. The system of claim 51 wherein the requirements list includes as a requirement that more than one buyer in the group have a common employer.

53. The system of claim 47, her comprising:

a setup tool configured to provide a group buy setup characteristics data that includes at least one selected from the group consisting of;

buyer deadlines for joining the group, buyer deadlines for receiving purchase authorization, and deadlines for closing the sales transaction.

54. The system of claim 47 wherein the purchase request receiver is connected to an electronic network and wherein the purchase request receiver is further configured to receive requests to purchase the product/service over the electronic network.

55. The system of claim 54 wherein the electronic network is at least one of the World Wide Web, the Internet, or an intranet.

56. The system of claim 54 wherein the purchase request receiver is further configured to receive requests to purchase the product/service in a secured format.

57. The system of claim 47 wherein the payment provider is connected to an electronic network and wherein the payment provider is further configured to provide the payment information to the at least one seller over the electronic network.

58. The system of claim 47, further comprising:

a group-buying notifier configured to notify at least one buyer in the group that the group has attained the at least one group size.

59. The system of claim 58 wherein the at least one buyer is notified via at least one of an e-mail message, Internet immediate message, voice message, beeper message, and facsimile message.

60. A method for using a computer to facilitate a sales transaction for purchasing a product/service by a group of buyers from a seller, comprising:

verifying that a plurality of buyers in the group share a common characteristic associated with a third party that is not any of the buyers or the seller;

receiving into the computer requests to purchase the product/service from verified buyers of the group;

forming a collective request for purchase of the product/service based upon the received buyer requests to purchase the product/service;

sending the collective request to the seller;

receiving a suggested price quotation for the product/service from the seller;

automatically notifying an agent entity of the suggested price quotation received from the seller; and

receiving purchase authorization from at least one verified buyer in the group to buy the product/service at the suggested price quotation received from the seller.

61. A method for using a computer to facilitate a sales transaction for purchasing a product/service from a seller, comprising:

receiving from the seller a sales price for the product/service or a price reduction for the product/service for a specified group size;

receiving into the computer requests to purchase the product/service by prospective buyers;

verifying that each prospective buyer satisfies a requirements list before including the prospective buyer in a buying group, the requirements list including a requirement that a plurality of buyers in the group share a common characteristic associated with a third party that is not any of the buyers or the seller;

monitoring the buying group to determine if the buying group has attained the specified group size; and

providing payment information to the seller if the group attains the specified group size.

62. A system for facilitating a sales transaction for the purchase of a product/service by a group of buyers from at least one seller, comprising:

a purchase request receiver configured to receive requests to purchase the product/service by a buyer in the group, and to verify that a plurality of buyers in the group share a common characteristic associated with a third party that is not any of the buyers or the seller;

a request former configured to form a collective request for the purchase of the product/service based upon the received requests to purchase the product/service;

a transmitter configured to send the collective request to the seller;

a price receiver configured to receive a suggested price quotation for the product/service from the seller; and

a price notifier configured to automatically notify an agent entity of the received suggested price quotation.