Patent Application
20090204500
The present invention relates generally to a method and system implementing an online marketplace for the sale of stated value vouchers at a discount from face value, in accordance with rules established by vendors for sale of stated value vouchers that the vendor will redeem. More particularly, the present invention relates to a method and system permitting sale of merchandise at prices that are discounted to a buyer-specific extent, thus allowing for optimization of revenues and profits.
In the context of retail sale of goods and services, “sales” in which such goods and services, or selected subsets of goods and services, are offered for sale by a vendor at a discount. For example, a particular sale event may allow for purchase of electronics items from a specified vendor at 25% less than the usual retail price. When executed properly, sale events may be effective in increasing inventory turnover, liquidation obsolete or near-obsolete merchandise, increasing revenues and increasing profits.
It will be appreciated, however, that it may be difficult to properly execute a sale event, in that it is often difficult to determine in advance a sufficient discount that will provide the desired effect. Further, particularly when the group of potential purchasers is diverse, any particular discount may provide an inadequate incentive for certain purchasers, and an excessive incentive for other purchasers, which results in lost profits. Further still, many conventional sales are manufacturer-sponsored, and thus do not apply to all of a single retailer's merchandise, or otherwise have limitations or exclusions of selected merchandise.
Further, many vendors wish to present an exclusive, prestigious image that may be inconsistent with a public announcement of a sale event.
What is needed is a method and system that provides the inventory-management advantages of sale events, and avoids the sometimes undesirable public announcements of sales, while allowing for optimization of revenues and/or profits.
The present invention relates generally to computer-implemented methods involving sale of vouchers, such as gift cards or gift certificates, via an online marketplace. Such vouchers have a stated cash value, and vouchers are sold at a discount from the stated cash value. In accordance with the present invention, the vouchers are presented for sale and sold in a particular manner that allows for effective management of a vendor's inventory of items for sale, e.g. by providing each buyer with a buyer-specific discount for purchase of items (goods or services) from a vendor. By varying rules, unknown to the buyers, for approving completion of sales transactions for stated value vouchers, the vendor can moderate sales of items between a lower-discount, premium-priced, inventory retention strategy (e.g., by temporarily approving sale of $100 stated value vouchers at $99 and above) and a higher-discount, sale-priced, inventory liquidation strategy (e.g., by temporarily approving sale of $100 stated value vouchers at $60 and above). Further, such moderation can be achieved in a manner that is not readily apparent to consumers, in that an individual consumer does not perceive that the vendor has placed its items “on sale” to the public, but rather perceives merely that the individual consumer has an opportunity to obtain a bargain for purchasing a full-price item at a lower price (e.g., using a $100 stated value voucher to purchase an tern priced at $100, when the individual consumer has purchased the $100 stated value voucher at a discount, e.g. for only $60).
In one embodiment, the method involves receiving at the marketplace server computer the vendor's commitment to sell stated value vouchers having a stated cash value, and operating a marketplace server computer to maintain a website for displaying at a bidder's computing device a for-sale listing identifying a stated value voucher available for sale but omitting information identifying any pending bids, and for accepting the bidder's bid for at least one stated value voucher. The method further involves referencing a predetermined rule for accepting a bid for sale of a stated value voucher, approving sale of a respective stated value voucher to a corresponding bidder for each bid acceptable according to the rule, and tendering the respective stated value voucher to each corresponding bidder for each approved sale.
In another embodiment, the method involves receiving the vendor's identification of a minimum bid acceptable to the vendor for sale of a stated value voucher, the vendor providing varying instructions from time to time, and further involves receiving bids for the stated value vouchers, comparing each of the plurality of bids to the vendor's current time-variant minimum acceptable bid, and approving sale of a stated value voucher for each bid exceeding a current minimum acceptable bid, and tendering a respective stated value voucher to each respective bidder for each approved sale. The method further comprises transmitting data for causing display at a bidder's computing device of a for-sale listing identifying a specified number of the stated value vouchers available for sale, the for-sale listing omitting information identifying any pending bids, and for accepting the bidder's bid for at least one of the stated value vouchers, where a collective number of approved sales exceeds the specified number of stated value vouchers for sale.
The present invention provides a method and system implementing an online marketplace for the sale of stated value vouchers at a discount from the stated value. The online marketplace may be provided in the form of an internet or intranet-type website configured to accept for-sale listings of stated value vouchers from vendors, and to receive bids and payment information from bidders, who may become buyers. By way of example, the website may be accessible via personal computers, PDAS, smartphones or other mobile devices, or via network-connected kiosks placed in retail stores, shopping malls, or the like. Sales of the vouchers via the online marketplace are conducted in accordance with rules established by each vendor for sale of stated value vouchers it will redeem. Accordingly, the present invention relates to a method and system permitting sale of merchandise at prices that are discounted to a buyer-specific extent, thus allowing for optimization of revenues and profits. Thus, the inventive method and system provides the inventory-management advantages of sale events, and avoids the sometimes undesirable public announcements of sales, while allowing for optimization of revenues and/or profits.
The present invention may be understood with reference to the exemplary, simplified network environment 10 of
Accordingly, each bidder system 30a, 30b, 30c may include conventional computerized hardware and software for browsing the web, such as a suitably configured personal computer, a PDA, smart-phone, or the like. Each vendor system, 20a, 20b, 20c, includes conventional computerized hardware and software for browsing the web, and for performing payment processing and other operations generally known in the art, or described herein.
Next, the method involves establishment of a plurality of bidder accounts for use of the system by bidders, as shown in step 104. For example, this may involve an individual's operation of a bidder system 30a, such as a personal computer (PC), a PDA, smartphone or other mobile device, or a kiosk, to log on to the marketplace system via the website interface presented by the marketplace server 200. It should be noted that the use of mobile device presents opportunities for GPS-based auctions, e.g. to solicit an individual to participate in an auction for vouchers for a retailer in physical proximity to the individual's present location as determined using GPS locating techniques. A bidder account may be created, and associated information stored by the marketplace server 200, in a conventional manner. Typically, establishment of the bidder account will involve providing a record of the bidder's name, mailing address, e-mail address, and payment processing information. Data capturing such information and relating the vendor account may be stored for subsequent retrieval in a memory 218 of the system/marketplace server 200, as shown in
The system may then subsequently receive a vendor's commitment to sell a voucher having a stated cash value and redeemable in the amount of the stated cash value to purchase goods from the vendor, i.e., a stated value voucher, as shown at step 106. In other words, a vendor may login to his vendor account and identify a lot of vouchers for sale. For example, the vendor may do so by creating a for-sale listing identifying a lot of 250 Home Depot gift card vouchers, each having a stated value of $100.
Next, the method involves receiving a vendor's instructions for sale of the voucher, as shown at step 108 of
The method further includes operation of online marketplace for purchase and sale of vouchers, as shown at step 110 of
For example, the marketplace server may include web server functionality causing a website-based online marketplace to be maintained so that individual bidders may use their systems 30a, 30b, 30c to browse the website and search for stated value vouchers presently listed for sale.
The online marketplace is then operated to selectively approve sales of the stated value voucher(s) to bidders at a price less than the stated value, as shown at step 114. By way of example, the online marketplace may be operated to conduct an auction for a voucher, to permit a simple purchase/sale transaction, etc. In a preferred embodiment, the system is operated to conduct a blind auction for the voucher(s), in which neither a current bid value, nor a highest paid value is displayed to a prospective bidders/purchaser in connection with presentation of the voucher for sale. See
In one embodiment, the auction is conducted as a Dutch auction. In such an auction, X available vouchers are sold to the X highest bidders at the close of the auction.
In a variation of a conventional blind Dutch auction that is in accordance with the present invention, a voucher is sold to every bidder, or every bidder meeting the vendor's criteria set forth in its instructions, at each respective bidder's bid price. In this manner, each bidder receives the same purchasing value of the stated value certificate (e.g., $100), but each bidder/buyer is enabled to purchase merchandise at a bidder/buyer-specific discount. In other words, a bidder offering $99 for a $100 voucher will receive $100 of purchasing power for purchasing goods at a 1% discount. Another buyer offering $90 for the $100 voucher receives $100 of purchasing power at a 10% discount. Another buyer offering $80 for the $100 voucher receives $100 of purchasing power at a 20% discount. Accordingly, each buyer receives a buyer-specific discount. In this manner, each buyer's discount is likely sufficient to incentivize that buyer to purchase and yet is unlikely to be more, or at least not significantly more, than a minimum discount that would be required to incentivize that buyer to purchase. Further, the 20% discount required for one buyer is not granted to another buyer for whom only a 1%, or 10%, discount would be sufficient to incentivize a purchase. In other words, rather than having the vendor make an independent determination as to a single discount that will work best with a group of buyers, each buyer is effectively permitted to state a discount that is sufficient, from the buyer's perspective, to incentivize a purchase—i.e., to set a buyer-specific discount level. Of course, the buyer is uncertain as to whether the stated discount (as specified by the buyer's bid) will be accepted or be sufficient as compared with other bids, which encourages the buyer to enter a bid toward the high end (minimum discount) of the buyer's acceptable price range for the voucher. Accordingly, under-discounting of merchandise (resulting in undesirably low sales volume) and over-discounting of merchandise (resulting in high sales volume with undesirably low profits) are avoided. Further, brand erosion is prevented, and any premium pricing structures may be preserved. Further, the system allows for rapid modification of the discounts provided by simply changing the instructions for approving sales of vouchers. These changes in instructions can be implemented almost instantaneously. Accordingly, for example, approvals may be initially granted for deeply discounted vouchers, and such approvals may be subsequently granted only for less discounted vouchers, e.g., throughout a single day, a single afternoon, etc.
The method further includes fulfillment of the sale of the stated value voucher, as shown at step 116 in
Exemplary operation of the online marketplace to approve sales of vouchers is shown in flow diagram 120 of
Next, it is determined by the system whether the vendor's instructions permit completion of sale to the highest bidder, as shown in step 126. For example, if the highest bidder has bid $95, and the instructions provide that the vouchers may not be sold for less than $90, then it would be determined in step 126 at the vendor's instructions do not permit completion of sale to the highest bidder (bidder C), and thus the portion of the method related to the sale of the vouchers would end without sale in the vouchers, as shown in steps 126 and 136.
If, however, it is determined by the system in step 126 that the vendor's instructions do permit completion of sale to the highest bidder (bidder C) (e.g., if the instructions provide that vouchers may be sought for any amount more than $75), then the portion of the method relating to completion of sale of the vouchers continues, and sale of the stated value voucher to the highest bidder is approved, as shown at steps 126 and 128.
In accordance with the present invention, the approval process continues for each remaining one of the plurality of bidders, as shown at step 130. For each of the remaining bidders (Bidder A and Bidder B in this example), it is determined whether the vendor's instructions permit completion of the sale to the respective bidder being considered. If the instructions permit completion of sale to the next respective bidder, the system approves sale of a voucher to the respective bidder at that respective bidder's bid price, as shown at step 132. This continues until all bidders have been considered, or until the instructions no longer permit sale of vouchers, e.g. due to a limit on the vouchers to be sold, sale price limit, etc., as shown at steps 130, 134 and 136.
It should be noted that, in accordance with one embodiment of the present invention, and in contrast to conventional methods, the method may continue such that the number of vouchers sold exceeds a number of available vouchers that was represented to the bidders. For example, the system may display in the for-sale listing that 50 vouchers are available; however the system may approve sale of 100 or more vouchers. This promotes aggressive/high bidding for a relatively small number of vouchers. However, in accordance with the present invention, many more than the represented number of vouchers, e.g. 100, 500, 5000, etc., may be sold to bidders. In one embodiment, a voucher is sold to every bidder, at each bidder's respective bid price, even when the number of vouchers to be sold exceeds the represented number of vouchers. In another embodiment, every bidder offering a bid consistent with the vendor's instructions is sold a voucher, even when the number of vouchers to be sold exceeds the represented number of vouchers.
The sale of more vouchers than represented is often acceptable to the vendor because the vendor can apply controls (in the form of instructions) to ensure that vouchers are sold such that only an acceptable discount will be provided. Further, the vouchers are sold in advance of redemption for merchandise, so the vendor may enjoy a “float” period during which it has use of the buyer's money paid for the voucher, as well-known in the gift-certificate industry.
The method is also advantageous in that it may be used to effectively provide “secret sales”, in that the voucher-holding buyer will receive a discount on purchased merchandise, as the result of purchase of the stated value voucher at less than the stated value, and yet other in-store or online shoppers may be unaware of any discounting of merchandise, and may thus be content to pay for merchandise without a discount. This allows for maintenance of an exclusive, never-on-sale image for premium brands, stores, etc.
In accordance with another aspect of the present invention, a system for carrying out the inventive methods described herein is further configured to process payments for approved sales of vouchers. Accordingly, as shown in the flow diagram 140 of
The system then identifies vendor contact information, as shown in step 144. For example, this may involve reference to vendor contact information stored in the for-sale listing for the voucher, or reference to vendor contact information stored in the memory 218, e.g. a database, of the system, such as information that was previously provided by the vendor and stored by the system in association with the vendor's account, as shown in
In accordance with a certain embodiment of the present invention, the system/server 200 does not process the payment. In other words, the system 200 does not communicate directly with a credit card or other payment clearance network as is typical for many online retailer websites or retail stores. Instead, the system transmits, via the Internet or other network, the buying bidder's transaction information to the vendor's system using the vendor contact information, as shown in step 146. For example, this may involve transmission to a secure electronic repository of information, using electronic data interchange (EDI), or other electronic transmission of information. After such information is deposited in the repository, it is retrievable only through a systematically-generated password initiated by and directed to the vendor. Preferably, the information is first encrypted by the server 200, before transmission to the vendor's system. As a practical matter, the server 200 may create a batch file of multiple buying bidders for one or more auctions/sales, and may aggregate transaction information for a single vendor, encrypt such batch file, and transmit the encrypted batch file to the vendor for decryption, payment processing, and fulfillment. The vendor's computerized systems are therefore configured for decryption, payment processing, and fulfillment, in accordance with the present invention. In the event of an inability to process a payment, the vendor may notify the marketplace server, and will not proceed to fulfillment for that buying bidder.
In alternative embodiments, the system/server 200 may process the payment, and either the vendor or the operator of the system may attend to fulfillment.
The transaction information includes the buying bidder's payment processing information, transaction-related information, such as quantity, sale price, stated value of voucher, etc. Additionally, the transaction information includes information required for fulfillment of the sale, i.e., tendering of the voucher to the buying bidder. Accordingly, the transaction information may include a mailing address of the buying bidder if the sale will be fulfilled by mailing a voucher, or may include the buying bidder's e-mail address if the buying bidder is going to be e-mailed a voucher, coupon code, or other information required for fulfillment. In certain embodiments, the system may provide the individual with e-mail alerts, text alerts, to voice alerts regarding auction listings or auction status. Optionally, a single system-specific “universal” card, similar to a gift card, may be issued to an individual that maintains voucher balances with numerous different vendors. In certain embodiments, the bidder may use an “auction concierge” service to provide automated instructions for entering bids, etc. according to predefined rules approved or established by the bidder.
In accordance with the present invention, the vendor then processes the buying bidder's payment using the payment processing information, as shown in step 148. For example, this may involve the vendor's system 20a, 20b, 20c direct communication with a credit card or other payment clearance network, as is well known in the art.
The vendor then initiates the fulfillment process to tender the stated value voucher to the buying bidder, as shown in step 150, and the method ends as shown at 152. In one embodiment, the fulfillment step involves notifying the system that the payment has been processed such that the system may proceed to fulfillment of the sale. In another embodiment, the vendor takes all steps necessary for fulfillment of the sale without further involvement of the system. As described above, fulfillment may involve mailing or shipping a physical voucher to a buying bidder, electronic transmission of a coupon code or other voucher information to the buying bidder via email, etc., or may involve electronic transmission of information that may be used as input to a kiosk in a shopping mall, etc. to cause it to dispense an appropriate physical voucher.
After the buyer receives the voucher, the buyer may present it to the issuing vendor for redemption. The vendor redeems the voucher in whole or in part, by permitting the buyer to use the card similarly to a gift card having a cash value in the amount of the stated value. Any unused amount may remain “on” the card for future use in substitution for cash, as generally known in the art for gift cards. The vendor's system may track the voucher balance, as generally known in the art for gift cards. In certain embodiments, a single card may be “refilled” by purchasing additional vouchers, the stated value of which are added to any previous balance.
Optionally, the system may track each bidder's purchases of vouchers, and present each bidder with a display via of the website of total savings resulted from discounted purchases of vouchers (e.g. $45 savings from purchases of $450 worth of stated value vouchers for a combined total of $405). In certain embodiments, the system may track bids and provide notices or awards in selected categories, e.g., highest bidder, most bids, most winning bids, etc. Optionally, the operator of the system may sell sponsorships for such awards, created an opportunity for advertising revenue streams.
The Marketplace Server 200 may communicate with other computers or networks of computers, for example via a communications channel, network card or modem 222. The Marketplace Server 200 may be associated with such other computers in a local area network (LAN) or a wide area network (WAN), and operates as a server in a client/server arrangement with another computer, etc. Such configurations, as well as the appropriate communications hardware and software, are known in the art.
The Marketplace Server's software is specially configured in accordance with the present invention. Accordingly, as shown in
Additionally, computer readable media storing computer readable code for carrying out the method steps identified above is provided. The computer readable media stores code for carrying out subprocesses for carrying out the methods described above.
A computer program product recorded on a computer readable medium for carrying out the method steps identified above is provided. The computer program product comprises computer readable means for carrying out the methods described above.
While there have been described herein the principles of the invention, it is to be understood by those skilled in the art that this description is made only by way of example and not as a limitation to the scope of the invention.
This application claims the benefit of priority under 35 U.S.C. §119(e) of U.S. Provisional Patent Application No. 61/027,956, filed Feb. 12, 2008, the entire disclosure of which is hereby incorporated herein by reference.
| Number | Date | Country | |
|---|---|---|---|
| 61027956 | Feb 2008 | US |
