Abstract:
A method of conducting business transactions on a networked system includes receiving buyer registration information from a prospective buyer, including information describing a purchasing interest. Seller information is also received which includes information describing an offer being proffered by a prospective seller. At least some of the buyer information describing the purchasing interest and at least some of the seller information describing the offer being proffered are selectively matched. In response to a match, an executable message is transmitted to the prospective buyer with the description of the offer and which allows the prospective buyer to accept or decline the offer.

Description:
CROSS-REFERENCE TO RELATED APPLICATION  
       [0001]     This application claims priority to Provisional Application Ser. No. 60/619,468, filed Oct. 15, 2004. 
     
    
     FIELD OF INVENTION  
       [0002]     The present invention relates to wired and wireless e-commerce transactions utilizing Internet- and telephony-based, real-time messaging infrastructures as the proactive transaction and notification media between buyers and sellers.  
       BACKGROUND OF INVENTION  
       [0003]     By now ecommerce is a well-accepted form of doing business, every year assuming a growing share of the world&#39;s overall commercial transaction volume. Numerous e-commerce trading schemes including various forms of supplier networks, on-line market places, auction sites, and small and large sellers&#39; ecommerce sites for conducting business directly with interested buyers. Some industries, such as the travel and the sellers of certain product categories, such as books or CDs, are already heavily trending toward conducting the majority of their transactions over the Internet.  
         [0004]     However, the majority of ecommerce activity follows the model of offering wares to a set of browsing potential buyers, the seller then having to wait for a buyer to see the offer(s) and eventually accept it. Even auction sites such as eBay offer a plethora of products from commercial and private sellers to a huge audience of browsing buyers, forcing the seller to wait for enough buyers to accumulate. This system works well for products that have no time urgency. And the onus is very much on a seller to ensure that the market of buyers knows about his or her offering, enticing them to buy if and when the buyers are ready. In other words, the dominant mode of existing ecommerce systems is for sellers to offer their products to the market, and then wait for buyers to see and respond to the seller&#39;s product or service offerings.  
         [0005]     Online methods for implementing ecommerce transactions are known in the art. Most are seller-centric systems essentially allowing buyers to peruse offered wares, albeit online, analogous to what traditionally has been done in marketplaces or advertisements. Even a few buyer-centric systems exist. However, even these systems and methods are subject to significant disadvantages. One such method is disclosed in U.S. Pat. No. 5,794,207 to Walker et al. for “Method And Apparatus For A Cryptographically Assisted Commercial Network System Designed To Facilitate Buyer-Driven Conditional Purchase Offers” (the &#39;207 patent). Here, a prospective buyer issues a “Conditional Purchase Offer” (i.e. a “CPO”) for a desired product or service, and provides a credit card number or other financial information suitable for closing the contemplated transaction. The CPO can contain many parameters defining the transaction, such as price, time and place of execution, product characteristics (e.g. color, shape, and functionality), and so on. However, once the CPO is issued, an online seller of that product or service then has the right to accept the CPO, thereby obligating the buyer to accept whatever responsive product or service is being offered by the seller within the stated, but limited, parameters of the CPO. The transaction is now complete.  
         [0006]     On the other hand, if the prospective buyer&#39;s CPO is not accepted within a given time frame, typically only seconds or minutes, the CPO expires, and the buyer must start the process all over again, usually with a new set of parameters, which will be more acceptable to a prospective seller. In the meantime, the buyer must monitor the buyer&#39;s terminal until the acceptance or rejection of the offer comes back from the seller.  
         [0007]     Hence the method disclosed in the &#39;207 patent is subject to some significant disadvantages. Among other things, once the buyer issues a CPO, the buyer&#39;s ability to negotiate with the seller is strictly limited, since acceptance by the seller of the CPO is binding on the buyer. In other words, if the buyer has not carefully considered the parameters of the CPO, that buyer is nonetheless obligated to pay for the requested product or service, normally through an automated debit to the buyer&#39;s credit card. Moreover, the short life span of the CPO may make it difficult to secure a willing seller at the same time, especially if conditions in the particular market are temporarily unfavorable. Finally, the currently available process is “hit and miss” and therefore significantly inefficient; a prospective buyer may be forced to issue several revised CPOs until finally a seller agrees to meet the requested conditions. Thus, this system is not truly buyer-centric; it simply affords buyers the ability to make an opening offer, the remainder of the transaction it at the discretion of the sellers.  
         [0008]     Given the increasing popularity of online transactions, particularly in a society that demands efficiency in business transactions, new methods and systems of implementing online transactions are required. Such methods and systems should not only be efficient, but also provide more flexibility to both potential buyers and potential sellers.  
       SUMMARY OF INVENTION  
       [0009]     The principles of the present invention are embodied, for example, in a method of conducting business transactions on a networked system, which includes receiving buyer registration information from a prospective buyer, including information describing a purchasing interest. Seller information is also received which includes information describing an offer being proffered by a prospective seller. At least some of the buyer information describing the purchasing interest and at least some of the seller information describing the offer being proffered are selectively matched. In response to a match, an executable message is transmitted to the prospective buyer with the description of the offer and which allows the prospective buyer to accept or decline the offer.  
         [0010]     Embodiments of the present principles augment the previously mentioned dominant mode of ecommerce where sellers wait for perusing buyers in two ways: It not only allows sellers to offer their wares, but it also allows buyers to offer their interests. And it enables buyers and sellers to find one another through an efficient category matching system, as well as to conduct a transaction on the spot by utilizing high-speed, real-time communication infrastructures such as wired or wireless instant messaging, email or automated telephone interactions. In this way, the buyer also can efficiently find a seller, and by each buyer can make his or her purchase category preferences known. As a result, the market of buyers can in aggregate signal to sellers what they are interested in buying. Thus, not only can sellers monitor emerging demand for particular products or services and tailor their offerings accordingly, but once those sellers have found a buyer, they can also offer the buyer the option of conducting a transaction immediately executing pre-defined responses to a push advertisement or alert. This method of allowing sellers reaching interested buyers quickly with instantly executable purchase offers is especially suited to situations in which sellers must rapidly sell off overstock or time-sensitive inventory such as airplane seats, hotel rooms, tickets, or certain product or service specials. 
     
    
     BRIEF DESCRIPTION OF DRAWINGS  
       [0011]     For a more complete understanding of the present invention, and the advantages thereof, reference is now made to the following descriptions taken in conjunction with the accompanying drawings, in which:  
         [0012]      FIG. 1  is a high level block diagram of a “Find and Buy” (FNB) system embodying the principles of the present invention;  
         [0013]      FIG. 2  is a flow chart illustrating an exemplary transaction process embodying the principles of the present invention;  
         [0014]      FIG. 3  is a conceptual diagram of a representative buyer registration computer interface suitable for utilization in the system of  FIG. 1 ;  
         [0015]      FIG. 4  is a conceptual diagram of the fields of a representative seller registration interface suitable for utilization in the system of  FIG. 1 ;  
         [0016]      FIG. 5  is a conceptual diagram of the display of a buyer terminal suitable for utilization in the system of  FIG. 1 ;  
         [0017]      FIG. 6  is high level block diagram illustrating a representative payment method suitable for utilization in the system of  FIG. 1 ; and  
         [0018]      FIG. 7  is a chart illustrating a procedure for matching buyers and sellers according to one embodiment of the principles of the present invention.  
     
    
     DETAILED DESCRIPTION OF THE INVENTION  
       [0019]     The principles of the present invention and their advantages are best understood by referring to the illustrated embodiment depicted in  FIGS. 1-7  of the drawings, in which like numbers designate like parts.  
         [0020]      FIG. 1  is a high-level block diagram of a representative ecommerce system  100  suitable for implementing a Find and Buy (FNB) system according to the principles of the present invention. Ecommerce system  100  includes a number of buyer terminals  101   a - 101   i  interfacing with associated Internet service provider servers  102   a - 102   d , such as those operated by wired and wireless Internet service providers or telephony carriers, such as America Online (AOL), Microsoft Network (MSN), Yahoo, Verizon, Cingular, Sprint, SBC, and many others. Ecommerce system  100  preferably utilizes instant messaging, although other communications protocols such as email, wireless messaging such as SMS, or telephony-based systems may also be used. Moreover, ecommerce system  100  is implemented, in whole or in part, using wired and wireless Internet connectivity.  
         [0021]     Servers  101   a - 101   c  in turn communicate with prospective sellers of products and services  103   a - 103   d  through a software and hardware FNB portal  104 . Prospective sellers include, for example, auctions sites, travel sites, and local, national, and international businesses participating in system  100 .  
         [0022]     Generally, ecommerce system  100  provides a platform for an FNB transaction system to allow participating sellers to send real-time alerts such as instant or SMS messages to those buyers registered to receive offers for a given category of products or services. Advantageously, system  100  is suitable for handling a large volume of near-simultaneous purchase requests for multiple copies of the same merchandise or service offering for both principal classes of situations, namely where either demand exceeds supply or vice versa.  
         [0023]      FIG. 2  is a flow chart illustrating a particular procedure  200  for implementing FNB transactions via ecommerce system  100 . At block  201 , a prospective buyer registers to participate in transactions on ecommerce system  100 .  FIG. 3  illustrates a representative graphics interface  300 , implemented on a corresponding buyer terminal  101   a - 101   i , which provides for the input of the buyer&#39;s personal information profiles, and indication of preferred buying interest, information required for establishing and validating a payment method selected by the buyer, and similar registration information. Interface  300  is exemplary only, and may vary in form and information content, as required to efficiently implement customized embodiments of system  100 . Buyers may subscribe to participate in ecommerce system  100  by either agreeing to pay regular subscription fees, or by accepting the receipt of targeted advertising in accordance with their stated purchase or general interest profiles. Once registered, prospective buyers can upload information identifying their categories of purchase interest, either on an individual product/service need basis or in bulk, or change or refine the registered information indicating their categories of purchase interest. At this time, prospective buyers also indicate how they wish their purchase interest to be processed by placing different types of purchase orders.  
         [0024]     At block  202  of  FIG. 2 , prospective sellers register for participation in ecommerce system  100 . An exemplary seller registration interface  400 , including service level selection information, is shown in  FIG. 4 . Interface  400  is also exemplary, and may vary in actual embodiments of ecommerce system  100 . Seller registration terminals effectuate seller registration in the illustrated embodiment of ecommerce system  100 , although the principles of the present invention are not necessarily limited thereto. At block  203 , the registering seller pays the subscription fee for the service level selected during registration at block  202 . The selections include a basic fee, as well as a fee for premium services. The premium service fee includes the basic service fee, along with commissions paid to the operator of ecommerce system  100 , and allows the seller access to buyer purchase interest information. In other words, sellers may pay for the ability to sell their products or services through ecommerce system  100  by paying regular subscription fees, an advance bulk fee for being able to send a set number of executable advertising alerts, and/or commissions per conducted transaction. The seller then uploads promotional information for distribution to interested buyers at block  204 . Sellers can upload in bulk their product and service offering information, complete with category descriptions, or on an individual product or service basis.  
         [0025]     At block  205 , FNB portal  104  matches buyers and sellers. In other words, classification system is established that allows buyers to categorize and register what they are interested in buying, and sellers to categorize and register what they are offering, such that both parties can find each other efficiently without an undue amount of type I or type II errors (i.e. offering the wrong category product to a buyer, or omitting to offer the right category product to a buyer).  
         [0026]     When potential buyers and sellers are matched at block  205 , then at block  206 , an executable advertising alert, also called “FNB alert” is sent to those registered buyers who, according to their registration information, may be interested in an offer being made available by a matching registered seller. In particular, buyer terminals  101  for the matching potential buyers display an FNB alert that contains standardized transaction options such as “buy now”, “notify me later”, “not interested”, “wait until the price is $______”, and the like that can be transacted via predefined, simple typed responses to the FNB alert, or via hyper-linked “action buttons” within the FNB alert window, depending on how the FNB alert is configured. A representative FNB alert  500  suitable for this purpose is shown in  FIG. 5 , although the content and form of the FNB alert can vary widely in actual embodiments of ecommerce system  100 . One particular feature, which may be offered in the FNB alert, is an information display that allows the buyer to monitor the remaining inventory of available products and services real-time, such that the buyer can evaluate the urgency of initiating a buy transaction.  
         [0027]     In procedure  200 , a given buyer advantageously has the opportunity at block  207  to make a decision concerning the continuation of any contemplated transaction. In other words, in ecommerce system  100 , the buyer is not automatically contractual bound to any offer made by a seller, or even obligated to acknowledge the receipt of a FNB alert. If the buyer decides not to accept a given offer made available through the FNB alert, then at block  208 , the FNB alert on the buyer&#39;s terminal  101  is simply closed and the potential transaction is over. An additional feature of ecommerce system  100  is the ability of a declining buyer to nonetheless register a strike price at or below which he or she would be willing to purchase the offering. This strike price is then submitted to the seller for further consideration.  
         [0028]     On the other hand, if the prospective buyer decides to initiate a buy transaction at block  207 , then the buyer makes the appropriate selection at block  209 , for example, by simply choosing the “buy now” option in the FNB alert. This purchase will then also stop the flow of related executable advertising alerts or FNB alerts to the buyer. At block  210 , the buyer closes the transaction by authorizing payment by the payment method set-up during buyer registration.  FIG. 6  illustrates one possible payment transaction flow. At block  211 , the seller is debited for the commission charged by the operator of ecommerce system  100 , if the seller has registered for the premium service.  
         [0029]     Preferably, the operator of ecommerce system  100  manages the conduct of participating buyers and sellers by a set of ethics and honorable online conduct policies. These policies are enforced, for example, through policy setting, online agreements, and transaction monitoring to ensure buyers commit to paying for purchased offerings and sellers commit to delivering the advertised goods or services on time and to advertised specifications. Ecommerce system  100  also advantageously allows sellers to monitor both existing and emerging demand for a particular product or service category in a market place via a so-called “demand window”, enabling the seller to precisely offer what an emerging, growing group of buyers is looking for. Analogously, a buyer can see the available inventory in the seller&#39;s stock of offered products or services in a so-called “supply window” to help decide when to buy an overstock or last minute item and at what price. Buyers also have the option of viewing the still available inventory of an offering via a decrementing counter as part of the received FNB alert. Hence, both sides are provided with substantial information, which further improves the flexibility and usefulness of ecommerce system  100 . Additionally, any of the sales transactions between buyers and sellers discussed above can be automated, analogous to “sniping” software, enabling disparate computers to buy and sell products or services automatically under pre-determined conditions utilizing the FNB alerting infrastructure.  
         [0030]      FIG. 7  is a flow chart illustrating another procedure  700  for implementing buy—sell transactions on ecommerce system. Procedure  700  advantageously allows buyers to monitor the supply of a selected category of goods or services and focus on prices, geographical areas, or dates of interest. At the same time, a seller can monitor existing orders, demand, and similar factors such that buyers can be identified that or suitable target candidates for executable ad alerts.  
         [0031]     Procedure  700  is based on two pathways, one for buyers and the other for sellers. The buyer path begins at block  701 , when the buyer registers for the first time. Once registered at block  701 , the buyer may then log on to system  100  at block  702  to pursue a product or service of interest. At block  703 , the buyer navigates through the menus appearing on buyer&#39;s terminal  101  to find the desired category of products or services. Ecommerce system  100  provides, at block  704 , a supply window that allows the buyer to select products or services of interest within a given geographical area, within a given price range, and/or within a given date range. With this information, the buyer can register his or her purchase interests via at block  705 .  
         [0032]     The seller path of procedure  700  is similar. In this case, the seller initially registers on ecommerce system  100  at block  706 , and then may log on anytime at block  707  to upload one or more offerings for products and/or services. In particular, at block  708 , the seller follows corresponding demand windows appearing on the seller&#39;s terminal  103  such that the seller can review demand information and select selling options such as target geography, prices, and range dates, at block  708 . From this information, the seller registers offers for products and/or services on ecommerce system  100  at block  710 .  
         [0033]     FNB portal  104  matches buyers&#39; purchase interests with sellers&#39; product and service offerings at block  711  and sends executable alerts to the relevant buyers. In particular, a Supply Matching Module matches buyers having a certain set of expectations (e.g. price) with sellers having an identical or similar set of expectations. Initially, buyers and sellers are matched (categorized) by purchase and selling interests. Additionally, any buyers or sellers who have opted out of certain transactions are filtered out of the process. Buyers and sellers are then matched by price. Preferably, the Supply Matching Module maximizes revenue to the sellers by pairing buyers willing to pay the highest price with sellers having the highest asking price. For example, buyers can be ranked in decreasing order of maximum acceptable purchase price and sellers similarly ranked in order of minimal acceptable selling price. From the rankings, buyers listing the highest acceptable purchase price are matched with sellers listing the highest minimum acceptable sales price. An alert can then be sent to the matching buyer or buyers. Moreover, when demand exceeds supply, buyers receiving an executable alert may be limited to those who have the listed the highest acceptable sales price. On the other hand, if supply exceeds demand, then Supply Matching Module attempts to match the seller&#39;s highest priced inventory with the highest acceptable buyer price, in order to clear inventory. At decision block  712 , a buyer receiving an executable alert is given the option to either decline an offer straightaway, accept the offer straightaway, or ask for additional executable alerts with different prices, times, or vendors. If the buyer accepts an offer, then at block  713 , the buyer is debited through the registered payment method and the seller fulfills the order by delivery of the product or services.  
         [0034]     When the buyer requests additional executable alerts, one or more sellers on system  100  can respond with modified offer. In essence, system  100  allows buyers and sellers to engage in on-line negotiation. For example, a buyer can issue an “initial interest”, asking for an additional alert when a product or service offering meets certain conditions (e.g., the price reaches a specified level). Or a buyer can ask for automatically executed transactions by agreeing to irrevocably purchase an offering once his or her conditions are met. A buyer will also define the period of time for which an order is valid (e.g. one day, one week, or one month), or as good until canceled; in all cases, unless otherwise specified, an order is canceled once an associated purchase has been made.  
         [0035]     In implementing procedure  100 , FNB portal  104  periodically checks for updates in both buyers&#39; and seller&#39;s listings, which may result for matches. In addition, sellers are sent updated information concerning the number of transactions executed, as well as the number and rank of counteroffers being made buy prospective purchasers. Hence, a seller can evaluate the market for a given product or service and make an informed decision as to modifying an offer to meet market demand.  
         [0036]     In sum, the principles of the present invention are embodying in systems and methods that provide flexibility to the buyer. Among other things, the buyer is not bound by a counteroffer made by a seller on the system, unless the buyer specifically requests that a transaction be executed when certain conditions are met. These principles also allow both buyers and sellers to monitor both supply and demand and appropriately modify their requests and offers as conditions change. In other words, a system is created that allows both parties to engage in a kind of electronic negotiation based on supply and demand.  
         [0037]     Although the invention has been described with reference to specific embodiments, these descriptions are not meant to be construed in a limiting sense. Various modifications of the disclosed embodiments, as well as alternative embodiments of the invention, will become apparent to persons skilled in the art upon reference to the description of the invention. It should be appreciated by those skilled in the art that the conception and the specific embodiment disclosed might be readily utilized as a basis for modifying or designing other structures for carrying out the same purposes of the present invention. It should also be realized by those skilled in the art that such equivalent constructions do not depart from the spirit and scope of the invention as set forth in the appended claims.  
         [0038]     It is therefore contemplated that the claims will cover any such modifications or embodiments that fall within the true scope of the invention.