Abstract:
The invention relates to an improved system and method for providing a service that coordinates shipping from a plurality of merchandise vendors by combining the shipping requirements from a plurality of physical locations into one transaction. The present invention coordinates shipping from a plurality of merchandise vendors in order to streamline shipping, allowing shippers to make fewer trips by combining deliveries, thus reducing costs. In addition, this invention enables separating the cost of shipping from the cost of the product, allowing the consumer to be concerned solely with the product quality and price.

Description:
CROSS REFERENCE TO RELATED APPLICATIONS 
       [0001]    The present application claims the benefit of U.S. Provisional Application No. 60/895,686 filed Mar. 19, 2007, the entire contents of which are hereby incorporated herein by reference. 
     
    
     FIELD 
       [0002]    The present invention relates to electronic commerce systems and methods, and more particularly, systems and methods for coordinating shipping services to optimize shipping efficiency and lower costs. 
       BACKGROUND 
       [0003]    Internet retailing has grown into a force to challenge local retailers and businesses. A major factor keeping Internet retailing from further expanding, however, is the cost of shipping goods from the merchandise vendors to the consumer. Every Internet purchase made requires its own shipment unless it is from the same merchandise vendor. Methods for comparing prices on the Internet and Internet auction systems are well known. These methods do not address the problem of high shipping costs. 
         [0004]    An improved system and method is needed to coordinate shipping from multiple merchandise vendors in order to streamline shipping, allowing shipping vendors to make fewer trips by combining deliveries, thus reducing costs. In addition, an improved system and method would separate the cost of shipping from the cost of the product, allowing the consumer to be concerned solely with the product quality and price. 
       SUMMARY 
       [0005]    The present invention is directed to a new and improved system and method for facilitating and coordinating merchandise shipments from multiple merchandise vendors to an individual consumer that allows the shipments to be combined into one billing event. Embodiments of the present invention include a system and method for coordination of shipping from multiple merchandise vendors where the combined shipment may be auctioned to shipping vendors for the best price and service. In accordance with further embodiments of the present invention, a system and method for coordination of shipping from multiple merchandise vendors where the customer chooses the service by clicking on an icon on the merchandise vendor&#39;s website that places the shipment into a queue along with the customer&#39;s other shipments is provided. In accordance with further embodiments of the present invention, a system and method for coordination of shipping from multiple merchandise vendors where the customer chooses to auction the shipment of only one purchase is provided. 
         [0006]    In addition to providing benefits to a customer, the present invention offers efficiency advantages to merchandise vendors. In particular, the present invention allows shipping vendors to build algorithms to calculate their cost for fulfilling the shipping orders. In accordance with further embodiments of the present invention, a system and method for coordination of shipping from multiple merchandise vendors that tracks the shipping information of multiple merchandise vendors to individual consumers is provided. 
         [0007]    The preset invention may be implemented in a variety of networking environments. In particular, the present invention may be implemented in a client-server network including a central server that facilitates the shipping agreements between customers and merchandise vendors. Alternatively, the present invention may be implemented in a peer-to-peer network, which does not include a central server. In a peer-to-peer environment, shipping data and transactions are routed through various network peers running on customer and vendor computers. These and other features of embodiments of the invention can be further understood from the following description, particularly when considered in connection with the accompanying drawings. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0008]      FIG. 1  is a diagram depicting merchandise shipments delivered as known in the prior art; 
           [0009]      FIG. 2  is a diagram depicting merchandise shipments delivered in accordance with embodiments of the present invention; 
           [0010]      FIG. 3  is a diagram depicting the relationship between elements associated with the present invention; 
           [0011]      FIG. 4  is a block diagram showing a client-server network implementation of the present invention; 
           [0012]      FIG. 5  is a block diagram of a shipping auction server in accordance with embodiments of the present invention; 
           [0013]      FIG. 6  is a block diagram of a peer-to-peer network implementation of the present invention; 
           [0014]      FIG. 7  is an illustration of an exemplary graphical user interface in accordance with embodiments of the present invention; and 
           [0015]      FIG. 8  is a flow chart illustrating aspects of a method in accordance with embodiments of the present invention. 
       
    
    
     DETAILED DESCRIPTION 
       [0016]    The present invention is directed to a system and method for facilitating the shipment of one or more items from merchandise vendors to a customer. The present invention allows a customer to purchase a number of items over the Internet and to place the shipping of the items up for auction or competitive bidding. The invention will facilitate lowering the cost of shipping for Internet purchases in order to compete with the over all cost of shopping from local retailers. Using previous methods, every Internet purchase made requires its own shipment unless it is from the same merchandise vendor. In contrast, the present invention allows the customer to combine shipping orders for merchandise purchased from multiple e-commerce merchandise vendors and then review and/or auction those shipping orders for the best price and service. In addition, the present invention allows for an increase in the available options for shipping regardless of the particular merchandise vendor or number of merchandise vendors used. 
         [0017]      FIG. 1  shows the relationship between customers and shipping vendors as it exists in the prior art. This relationship consists of one delivery for each purchase made. In particular, a customer who has made a purchase from a particular vendor will have the merchandise delivered from the merchandise vendor&#39;s warehouse  100  to the customer&#39;s location  104  in a first shipment  108 . The same customer may also make a purchase from a second merchandise vendor. The purchased merchandise will be delivered from the second merchandise vendor&#39;s warehouse  112  to the customer&#39;s location  104  in a second shipment  116 . For a customer who wishes to make multiple on-line purchases this arrangement is not cost-effective. In particular, the shipping costs that must be made with each purchase may make on-line shopping prohibitively expensive in comparison to shopping at local retailers near the customer&#39;s location. 
         [0018]      FIG. 2  shows the relationship between customers and shipping vendors, as it would exist with the implementation of the present invention. In particular, a customer makes a number of purchases from a number of different merchandise vendors and uses the present invention to combine the shipping of all merchandise into one transaction. More particularly, the present invention facilitates a single shipment  200  from the various warehouses  204   a - x , which are associated with different vendors, to the customer location  208 . Accordingly, merchandise purchased from a number of merchandise vendors may be delivered together. As a result the reduced shipping costs make on-line shopping more cost effective. 
         [0019]    Initially, a general description of the present invention will be given with reference to  FIG. 3 , which illustrates the basic elements associated with the present invention. The present invention is directed to facilitating the shipment of one or more items obtained by a customer  304  through one or more on-line transactions. Specifically, the customer  304  purchases a number of items through one of more online merchandise vendors  308 . The shipping orders for the purchased items are recorded in a shipping queue  312 , which is posted for a number of shipping vendors  316  to consider. Each shipping vendor  316  then may post a shipping bid  320  for consideration by the customer  304 . A winning shipping bid is then chosen from the posted shipping bids  320 . 
         [0020]    In order to be able to consider and/or process the shipping order contained in the shipping queue  312 , the shipping vendors  316  may need to have the customer&#39;s  308  name and address. In that regard, the customer  304  may establish a shipping profile  324  that includes, at a minimum, the customer&#39;s  308  name and address. The shipping profile  324  may be posted along with the shipping queue  308  or may be otherwise accessed by the shipping vendors  316  during the bidding process. 
         [0021]    The shipping bids  320  may be updated dynamically as the customer  304  continues to shop. In particular, with each on-line purchase a new shipping order may be added to the shipping queue  312 . An updated shipping queue  312  may then be posted for consideration by the shipping vendors  316 . Based on each new shipping queue  312  the shipping vendors  316  may then post updated shipping bids  320 . The customer  304  may also modify the shipping queue  312  by, for example, by removing particular items. New shipping bids  320  may then be posted based on the modified queue  312 . 
         [0022]    The wining shipping bid may be chosen from the posted shipping bids  320  using any one of a number of different methods. In accordance with embodiments of the present invention, customer  304  may receive and review all of the posted shipping bids  320 . The customer  304  may then select a winning shipping bid based on considerations such as price and/or shipping time. In accordance with alternative embodiments of the present invention, the winning shipping bid may be generated based on a predetermined set of customer preferences. In particular, the customer  304  may include in the shipping profile  324  parameters such as price ranges and/or minimum shipping times that allow the winning shipping bid to be generated automatically. Additionally, the winning shipping bid may be selected by a combination of these two methods. In particular, the posted shipping bids  320  may be filtered based on a predetermined set of customer  304  preferences to produce a subset of shipping bids  320  that is then presented to the customer  304  for consideration. 
         [0023]    The winning shipping bid may be chosen based on a negotiation between the customer  304  and a particular shipping vendor  316 . In particular, a customer  304  may accept a shipping bid  320  provided particular contingencies are met. If the shipping vendor  316  agrees to the contingencies the transaction can go forward. 
         [0024]    As can be appreciated by one of skill in the art from the disclosure herein, a number of factors will be considered by the shipping vendors  316  in determining a shipping bid  320  for a particular shipping queue  312 . For example, the location of the various warehouses that contain the merchandise, the customer&#39;s location, the cost of picking-up the merchandise, the number of units being shipped et cetera. Shipping vendors  316  may use or provide algorithms to automatically generate shipping bids  320 . A sample algorithm for calculating shipping costs is as follows:
       X=The cost of delivering one shipment to a customer   Y=The cost of picking up one product from a manufacturer or distribution center   Z=The number of units being shipped from the manufacturer   P=The number of products being delivered to a customer   OH=Over Head of the shipping vendor including routine travel routes   TS=Total shipments made by shipping vendor       
 
         [0000]      Total cost of shipment= X/P+Y/Z+OH/TS    
         [0031]    Since Z, P and TS decrease the average cost of shipping as the number of products increases it is clear that this is a scalable scenario. In other words, both the shipping vendor  316  and the customer  304  will wind up winning by combining shipping requirements from multiple sellers or merchandise vendors  308 . 
         [0032]    In determining shipping bids  320 , the shipping vendors  316  also may have access to the shipping profiles  324  established by particular customers  304 . A database containing the shipping profiles  324  for particular customers  304  accessible to the shipping vendors  316  may be provided in an industry standard format to facilitate use by multiple shipping vendors  316 . Additionally, the shipping queue  312  itself may contain information needed by the shipping vendors  316  in their consideration of the shipping queue  312 . In particular, the shipping queue  312  may include product descriptions and a number of ship-from addresses associated the merchandise vendors  308 . Additionally, the shipping vendors  316  may directly contact the merchandise vendors  308  to obtain information such as, for example, a ship-from address or product descriptions such as size and weight 
         [0033]    In accordance with embodiments of the present invention, the shipping vendors  316  may develop their own algorithms to calculate the cost of shipping merchandise from the merchandise vendors  308  to the customer  304 . The more accurate these algorithms are the more profitable the shipping vendors  316  will be. The shipping vendors  316  will only bid on shipping queues  312  that will meet profit requirements. When the cost algorithm is wrong it is very likely that less profitable work will be won. As mentioned previously, the linear logistic product flow shown in  FIG. 1  is not advantageous for the customer  304 . Additionally, this type of product flow can contain disadvantages for shipping vendors  316 . In particular, ship-from locations, shipping vendors, shipping routes, and ship-to locations are not coordinated or consolidated. The non-linear logistic product flow shown in  FIG. 2 , which is achieved with the implementation of embodiments of the present invention, provides a shipping vendor  316  with a total picture of marketplace shipping requirements (shipping requirements from multiple customers) and allows for an optimization of efficiencies with a reduction of shipping costs. With marketplace shipping requirements known, the present invention can provide a given shipping vendor  312  with multiple ship-from locations and multiple ship-to locations. Shipping routes can be consolidated and coordinated to optimize resources and reduce shipping costs. It should be appreciated that it is not necessary for shipping vendors  316  to develop algorithms for calculating shipping costs. In particular, a given shipping vendor  316  may wish to inspect the posted shipping queues  312  and generate shipping bids  320  on a case-by-case consideration of the contents of shipping queue  312 . 
         [0034]    Embodiments of the present invention may be implemented as a service that maintains customer  304  and/or shipping vendor  316  information and facilitates shipping agreements negotiated between customers  304  and shipping vendors  316 . In particular, an auction service in accordance with embodiments of the present invention allows the customer  304  to combine shipping orders from multiple merchandise vendors and then auction those shipping orders for the best price and service. For example, the customer  304  can select this auction service by clicking on a particular icon on the merchandise vendor&#39;s  308  web page. This action can also allow for the placement of the customer&#39;s  304  information in a database. The shipping options for the items in the queue  312  can then be obtained. Optionally, the customer  304  can be asked for personal information or to join the service for faster future service. The customer  304  then has the option of selecting a shipping vendor  316  based on the shipping options presented, and initiating shipment of the products or to continue shopping. The auction service may maintain a list or database of delivery addresses indexed by customer name. 
         [0035]      FIG. 4  illustrates components of a system  400  that implements an auction service in accordance with embodiments of the present invention. The system  400  is implemented as client-server network. Accordingly, the system  400  includes a client or customer computer  404  in communication with an auction server  408 . The auction server  408  may comprise a general-purpose computer capable of executing application programming for use in connection with an auction service. The customer computer  404  and the auction server  408  communicate with each other over a data network, such as the Internet  412 . Additionally, the system  400  shown in  FIG. 4  includes a number of merchandise vendor computers  416  and a number of shipping vendor computers  420 . The merchandise vendor servers  416  may host e-commerce websites or otherwise facilitate the online purchase of merchandise sold by merchandise vendors  308 . The shipping vendor computers  420  may host e-commerce websites or otherwise facilitate the online purchase of shipping contracts or agreements offered by the shipping vendors  316 . 
         [0036]    In general, an auction service in accordance with embodiments of the present invention may include at least a customer module and a number of shipping vendor modules. In the client-server system  400  shown in  FIG. 4 , the customer module includes a customer client application  424  running on the customer computer  404  and a customer server application  428  running on the auction site sever  408 . The shipping vendor modules include a shipping vendor server application  432  running on the auction server  408  and plurality of shipping vendor client applications  436  running on the shipping vendor computers  420 . 
         [0037]      FIG. 5  illustrates the components of a computer  502 , such as may be used in connection with implementing a customer computer  404 , an auction server  408 , or a shipping vendor computer  420 . The computer  502  may include a processor  500  capable of executing program instructions. Accordingly, the processor  500  may include any general-purpose programmable processor or controller for executing application programming. Alternatively, the processor  500  may comprise a specially configured application specific integrated circuit (ASIC). The processor  500  generally functions to run programming code implementing various functions performed by the auction server  408  or other system component being implemented. For example, such functions may include functions enabled through the execution of programming code or other application instructions. 
         [0038]    The computer  502  may additionally include memory  504  for use in connection with the execution of programming by the processor  500 , and for the temporary or long-term storage of data or program instructions. For example, the memory may be used in connection with the operation of applications. The memory  504  may comprise solid-state memory resident, removable or remote in nature, such as DRAM and SDRAM. Data storage  508  may be provided for the storage of application programming and/or data. For example, operating system software  512  may be stored in the data storage  508 . Examples of particular applications that may be stored in data storage  508  are the customer server application  428  and the shipping vendor server application  432 . The data storage  508  may be operable to store shipping queues  312 , shipping profiles  324 , cookies, tags, and/or other data associated with facilitating shipping agreements between the customer  304  and one or more of the shipping vendors  316 . For example, in connection with a customer computer  404 , a data storage  508  may include tracking software that allows an auction service to monitor a customer&#39;s online purchases and to automatically generated shipping bids  320 . The tracking software may be installed and may operate based on permission given by a user. Additionally, the data storage  508  may store a number of algorithms  516  provided by the shipping vendors  316 . The algorithms  516  may be used by the auction server  408  to generate shipping bids  320  for the shipping queue  312  without having to directly contact to merchandise vendor computers  420 . 
         [0039]    The computer  502  may additionally include a communication interface  520  operable to connect the auction server  408  or other component to the Internet  412 . Communications over the Internet  412  may include communications between the customer server application  428  and the customer client application  424  to accomplish such tasks as registering the customer&#39;s  304  name and address, adding or deleting items to a shipping queue  312 , transmitting a shipping queue  312 , transmitting or updating shipping profiles  324 , transmitting posted shipping bids  320 , and/or receiving winning shipping bids. Additionally, the shipping vendor server application  432  may communicate over the Internet  412  with various shipping vendor client applications  436  to accomplish such tasks as posting shipping queues  312 , receiving shipping bids  320 , and posting winning shipping bids. Additionally, particular applications running on the auction site server  408  may communicate over the Internet  412  with various merchandise vendor computers  416  to obtain product information to be included in a particular shipping queue  320 . 
         [0040]      FIG. 6  illustrates an alternative embodiment of the present invention, in which the auction service may be implemented using a peer-to-peer network or system  600 . The peer-to-peer system  600  implements all of the functions of an auction service without requiring the use of a central server. In particular, all of the data routing functions typically performed by a central server are distributed throughout various applications that are running on the computers used by various customers  304  and shipping vendors  320 . In a peer-to-peer network  600 , the customer module includes a customer peer application  604  running on the customer computer  404 . The shipping vendor modules include a plurality shipping vendor peer applications  608  running on the shipping vendor computers  420 . 
         [0041]    In the peer-to-peer system  600 , a particular shipping queue  312  may be maintained at the customer computer  404  while the customer  304  is shopping online. Once the customer  304  has finished shopping, a complete shipping queue  312  may be posted. Posting the shipping queue  312  may include transmitting the queue  312  through the various nodes of the peer-to-peer network to all appropriate shipping vendor computers  420 . Similarly, after considering the shipping queue  312 , the shipping vendors  316  may post shipping bids  320  over the peer-to-peer network for consideration by the customer  304 . Additionally, the customer peer application  604  may contain information such as the shipping profile  324  which may be accessed by the shipping vendor computers  420  over the peer-to-peer network. 
         [0042]    In a peer-to-peer network, particular nodes or network peers may be designated as “super-nodes.” Super-nodes are network peers that take on larger amounts a data routing tasks. A customer  304  or a shipping vendor  316  may elect to have their peer application designated as a super-node. As can be appreciated, super-nodes consume greater amounts of computer memory and handle greater amounts of data traffic than a typical peer application. Accordingly, discounts or rebates may be offered by the auction service to those customers  304  or shipping vendors  316  that host a super-node. Alternatively, temporary super-nodes may appear dynamically at various nodes in the network without any nodes being designated as super-nodes. 
         [0043]    In both the client-server implementation of the auction service and the peer-to-peer implementation, shipping transaction are executed by a customer  304  using the customer computer  404 . The customer computer  404  may include a processor capable of executing program instructions; memory or other data storage for use in connection with the execution of programming by the processor and for the temporary or long-term storage of data or program instructions; and a communication interface operable to connect the auction server customer computer to the Internet  412  In addition, various customer input devices and customer output devices may be provided. Examples of customer input devices include a microphone, keyboard, numeric keypad and pointing device combined with a screen or other position encoder. Examples of customer output devices include a speaker, alphanumeric display, ringer, or display. 
         [0044]    A graphical user interface is typically displayed on screen or other output device associated with the customer computer  404 . The graphical user interface facilitates the e-commerce transactions associated with the present invention.  FIG. 7  illustrates an exemplary graphical user interface  700  that displays auction elements such as a shipping profile  324 , a shipping queue  312  and a number of shipping bids  320 . As can be seen, the shipping profile  324  includes the customer name  704  and address  708 . Additionally, the shipping profile  324  may include a number of shipping preferences  712 . The shipping queue  312  includes a number of shipping orders  714 . By way of illustration, the shipping orders  714  may include a listing of items  716  each having a price  720  and a location  724 . The data associated with shipping queue  312  and the shipping profile  324  may be stored locally at the customer computer  404 , at the auction site server  408  (if applicable), or at various node of a peer-to-peer network (if applicable). 
         [0045]    The exemplary graphical user interface  700  additionally includes a plurality of shipping bids  320 . The shipping bids  320  are received and displayed by the customer computer  404  after the shipping queue  312  has as been posted. The shipping bids  320  may be displayed in a preferential ordered based on one or more predetermined criteria. For example, one or more shipping bids  320  may appear in prominent positions based on past performance, bid results, and/or a fee-based relationship with the auction service. In this way, the auction service is able to provide top recommendations for shipping vendors  316 . On the customer computer  404 , the shipping bids  320  may be updated dynamically as items  716  are added to or removed from the shipping queue  312 . By way of illustration the shipping bids  320  may include a shipping company name  728 , a delivery time  732 , a delivery price  736 , a guarantee  740  and a date  744  after which the shipping bid is no longer valid. 
         [0046]      FIG. 8  is flow chart that illustrates a method of facilitating a shipment in accordance with embodiments of the present invention. Initially, at step  800  the customer  304  registers with the auction service including recording a name  704  and address  708 . Optionally, this step may be done later. Specifically, the customer  304  may be prompted to register with the auction server after making an on-line purchase. 
         [0047]    At step  804 , the customer  304  searches on-line e-commerce sites for merchandise offered by various merchandise vendors  308 . With each on-line transaction the customer  304  may place a shipping order  714  in the shipping queue  312 . 
         [0048]    At step  808 , the shipping queue  312  is posted for consideration by the shipping vendors  316 . The shipping queue  312  may be posted after the customer  304  has completed all on-line purchases. Alternatively, the shipping queue  312  may be posted after one or more orders are placed in the shipping queue  312 . By posting the shipping queue  312  after each on-line purchase the customer  304  is able to track a running total of shipping costs as the customer  304  shops. In accordance with embodiments of the invention, posting the shipping queue  312  may include instructing the auction site server  408  to transmit the shipping queue  312  to the shipping vendor computers  420 . Alternatively, posting the shipping queue  312  may include causing the shipping queue  312  to be routed through a peer-to-peer network to the shipping vendor computers  420 . 
         [0049]    At step  812 , the shipping vendors  308  calculate shipping bids  320  based on the posted shipping queue  312 . The shipping bids  320  may be calculated based on a variety of considerations including the prices  720  and location  724  of each item  716  in the queue  312 . The shipping vendors may also consider information contained in customer shipping profile  324  such as the customer&#39;s  304  address and shipping requirements  712 . Additionally, in considering the shipping queue  312  the shipping vendors may directly contact the merchandise vendors  308  to obtain further information about the various items  716  in the queue  312 . In accordance with embodiments of the present invention, shipping bids  320  may be calculated at the auction server  408  using algorithms  516  provided by the merchandise vendors  308 . 
         [0050]    At step  816 , the shipping vendors  316  who wish to bid on the shipping queue  312  each post a shipping bid  320 . A posted shipping bid  320  will typically include an offer to process all shipping orders  714  in the shipping queue  312 . Depending on how the auction is implemented, posting of the shipping bids  320  can take place through an auction server  408  or can include a routing of the shipping bids  320  through a peer-to-peer network. 
         [0051]    At step  820 , the posted shipping bids  320  are considered. Consideration of the posted shipping bids can entail the customer  304  reviewing all posted shipping bids  320 . Alternatively, the posted shipping bids  320  may be processed by computer based on the customer&#39;s  304  predetermined shipping requirements  712 . Processing the shipping bids  320  may include selecting a subset of the bids  320  for consideration by the customer  304  or automatically generating the winning shipping bid. Processing of the shipping bids  320  may take place at the auction server  408  or at particular nodes of a peer-to-peer network. In other words, if automatic processing selected, the customer  304  may not receive all the posted shipping bids  320 . Additionally, in considering the shipping bids  320 , the customer  304  may remove particular items  716  from the queue and receive updated shipping bids  320 . 
         [0052]    At decision diamond  824 , the customer  304  may determine whether to continue shopping. All the items that are currently needed may have been purchased or the shipping costs that have accumulated may necessitate that the customer shop no more. Accordingly, if the customer does not wish to shop any longer, the method may proceed to step  828 . Alternatively, if the customer wishes to continue shopping the method may return to step  804 . 
         [0053]    At step  828 , a winning shipping bid selected from the plurality of posted shipping bids is posted. As mentioned above, the winning bid may be selected manually, automatically, or by a combination of these two methods. After the winning bid is received by a particular shipping vendor  316  (over a client-server or a peer-to-peer network), the particular shipping vendors  316  proceeds to process the shipping queue  312 . 
         [0054]    The foregoing discussion of the invention has been presented for purposes of illustration and description. Further, the description is not intended to limit the invention to the form disclosed herein. Consequently, variations and modifications commensurate with the above teachings within the skill or knowledge of the relevant art are within the scope of the present invention. The embodiments described herein above are further intended to explain the best mode presently known of practicing the invention and to enable others skilled in the art to utilize the invention in such or in other embodiments and with the various modifications required by the particular application or use of the invention. It is intended that the appended claims be construed to include alternative embodiments to the extent permitted by the prior art.