Acquisition option in auction configuration

A configuration is configured to allow purchase of an item available in an auction. The configuration transmits to a bidder a plurality of bids for use in an auction. Each bid is given a predetermined bid value. The configuration provides for display a selectable interface to place a bid on the item and a selectable interface to purchase the item at the retail price. The configuration receives from the bidder at least one bid on the item. In response to each bid received from the bidder for the item, the configuration reduces the retail price for the item by a value corresponding to the bid value. The configuration then provides for display the reduced retail price in response to each bid received from the bidder for on the item. The bidder can continue with the auction in an attempt to receive the auctioned item at a low cost or may purchase the auction item at a retail price minus the total of the value of bids placed by that bidder.

BACKGROUND

1. Field of Art

The disclosure generally relates to the field of electronic commerce.

2. Description of the Related Art

Auctions conducted online are well known. Generally auctions are conducted so that participant bidders bid on an item and the highest bidder wins. A twist on an auction is an entertainment auction, which sometimes is referred to as a penny auction. In a penny auction, participant bidders must buy a bundle of bids and use one every time they raise their virtual paddle. In some configurations, bids cost 60 cents to $1 each and are bought in packs of 10 to 700, depending on the site.

Although winners of penny auctions receive a substantial discount on an auctioned item, such discounts can be wiped away depending on the number of bids placed prior to winning the item. Moreover, when the bidding closes other bidders who have not won the auction are left with nothing despite incurring a cost for participating in the auction.

DETAILED DESCRIPTION

Configuration Overview

One embodiment of a disclosed configuration (system, method and computer readable storage medium) that includes providing a configuration to purchase an item available that is available in an auction. The configuration transmits to a bidder a plurality of bids for use in an auction. Each bid is given a predetermined bid value. The configuration receives log in credentials from the bidder. Upon receipt of this information the configuration provides for display an item available for auction and a retail price for the item. The configuration also provides for display a selectable interface to place a bid on the item and a selectable interface to purchase the item at the retail price. The configuration receives from the bidder at least one bid on the item. In response to each bid received from the bidder for the item, the configuration reduces the retail price for the item by a value corresponding to the bid value. The configuration then provides for display the reduced retail price in response to each bid received from the bidder for on the item. The bidder may now continue with the auction in an attempt to receive the auctioned item at a low cost or may purchase the auction item at a retail price minus the total of the value of bids placed by that specific bidder.

As disclosed herein, it is noted that although reference is made to an item in the auction process throughout the specification, such item need not be limited to a tangible good. For example, the item can be a service or can be a combination of a good and service.

Computing Machine Architecture

The example computer system100includes a processor102(e.g., a central processing unit (CPU), a graphics processing unit (GPU), a digital signal processor (DSP), one or more application specific integrated circuits (ASICs), one or more radio-frequency integrated circuits (RFICs), or any combination of these), a main memory104, and a static memory106, which are configured to communicate with each other via a bus108. The computer system100may further include graphics display unit110(e.g., a plasma display panel (PDP), a liquid crystal display (LCD), a projector, or a cathode ray tube (CRT)). The computer system100may also include alphanumeric input device112(e.g., a keyboard), a cursor control device114(e.g., a mouse, a trackball, a joystick, a motion sensor, or other pointing instrument), a storage unit116, a signal generation device118(e.g., a speaker), and a network interface device120, which also are configured to communicate via the bus108.

The storage unit116includes a machine-readable medium (or machine-readable storage medium)122on which is stored instructions124(e.g., software) embodying any one or more of the methodologies or functions described herein, for example, with respect to the processes inFIGS. 2-4or the example inFIGS. 5-9. The instructions124(e.g., software) may also reside, completely or at least partially, within the main memory104or within the processor102(e.g., within a processor's cache memory) during execution thereof by the computer system100, the main memory104and the processor102also constituting machine-readable media. The instructions124(e.g., software) may be transmitted or received over a network126via the network interface device120.

While machine-readable medium122is shown in an example embodiment to be a single medium, the term “machine-readable medium” should be taken to include a single medium or multiple media that is configured to store instructions (e.g., instructions124). Moreover, it includes not only the physical media, but also the corresponding software and other functional components within it, e.g., a centralized or distributed database, or associated caches and servers. The term “machine-readable medium” shall also be taken to include any medium that is capable of storing instructions (e.g., instructions124) for execution by the machine and that cause the machine to perform any one or more of the methodologies disclosed herein. The term “machine-readable medium” includes, but not be limited to, data repositories in the form of solid-state memories, optical media, and magnetic media.

Architecture for Auction System

FIGS. 2 through 4provide one example of an architecture of an auction system. The auction system is described through a central entity that manages the auction process. In one embodiment, the descriptions of the processes of the auction system herein are configured as modules storable and executable within a computer system, for example, the computer system100. The modules may include instructions124that are stored within the storage unit116, for example, in a machine readable medium122. The instructions124are executable through a processor102.

Referring now toFIG. 2, it illustrates one embodiment of a process for transmitting a package of bids in response to a request for a package of bids. In one embodiment, the process starts210with the auction system receiving215a request for a package of bids (or bid package). The request may be for a particular bid package. The bid package corresponds to a predetermined number of bids that are bundled and sold at a predetermined price. In addition, in alternate embodiments bid packages within the auction system can be configured so that bid values for each bid in a package can differ. In such instances, the auction system determines220the value of each bid in the bid package, e.g., to determine which auctions such bids in the bid package can be applied. Examples of this configuration include having different levels of auctions where in some cases bids sold at a higher cost per bid can be used for higher priced auctions while bids sold at a lower cost per bid can be used for lower priced auctions. The bid package is ultimately transmitted225to the requester for subsequent use in an auction process as disclosed herein before this part of the process ends230.

Turning next toFIG. 3, it illustrates one embodiment of a process for providing for display bid and retail purchase information for at least one item to a potential bidder. For ease of discussion the process will be described in the context of a bidder in general. It is noted that the bidder may begin as a potential bidder and then become an actual bidder once the user begins bidding on items.

In terms of beginning the bidding process, as previously described the bidder must first obtain a bid package that includes one or more bids for use in the bidding process. Typically, this is done after the bidder has set up an account with the auction system. Hence, before purchasing a bid package or partaking in one or more auctions, the bidder creates an account with the auction system. Creation of an account includes creating (or being assigned) user identification and password, which are used to obtain access into an auction system. In additional, the creation of the account may include providing additional details such as credit card information to complete transactions, e.g., purchase additional bid packages, pay for a won auction, or purchase of an item being auctioned. The creation of an account may also include providing for the auction system other information such as security information, user preferences such as notifications of particular auctioned items or bidding information, and the like. The auction system may store account related information in a database in the storage unit116of the computer system100.

InFIG. 3, the process starts310and the bidder (or user) is provided a user interface that includes selectable interfaces to interact with the auction system. For example, the auction system provides for display315an interface to log into the auction system. The auction system within the computer system100provides computer program code via the network126that the bidder computer system receives. The code is then read through a web browser or application (or applet) for display on the user computer system. For the log in, the interface may include two fields, one to enter in a user identification and the other to enter in a password, along with a selectable interface, e.g., a software button, to submit (or enter) the inputted entry to transmit the information to the computer system100via the network126.

The auction system provides for display320at least one item available for auction and a predetermined price for purchase of that item. The predetermined price corresponds to a regular, or retail, price for the item if directly purchased using the auction system. Further, the auction system provides for display320with each item shown available for auction, selectable interfaces to place a bid on that particular item or purchase the item at the then shown retail price. At this point the process ends330in the context of begin ready to accept bids from the bidder.

FIG. 4illustrates one embodiment of a process for bidding or purchasing an item being auctioned. In general, the process starts410and the auction system receives a bid from the bidder415. The received bid reduces420the retail price for the item that has been bid upon by a predetermined offset amount. The reduction is only for the particular bidder and only the particular bidder computer is provided the user interface display with the reduced retail price. The predetermined offset amount can be, for example, a value equivalent to the actual bid value (e.g., for 100 bids bought at $100, each bid has an actual bid value of $1) or a formula amount corresponding to the actual bid value (e.g., the value is ½ of the actual bid value). At the same time, the price of item being auctioned is raised by a predetermined auction increment amount. The predetermined auction increment amount can be, for example, an amount equivalent to the actual bid value, a formula corresponding to the actual bid value, or a preset increment amount (e.g., $0.15 for each bid submitted).

The auction system then determines425if the auction is still open (i.e., not closed). If the process is still open the auction system determines430whether another bid has been received for the auctioned items. The auction system determines435if the bid is from the bidder. If so, the process continues back around with receiving415the bid, incrementing the auction amount, and reducing420the retail price for the item for this bidder by the predetermined offset amount. If the bid is not from the bidder, the auction system can be configured to determine440if the bidder will bid again or if not, determine445if the bidder will purchase the auctioned item. Likewise if the auction is determined425to still be open and a determination430is made of no indication of a bid, the system may also determine445if the bidder will purchase the auctioned item.

If the bidder purchases the auctioned item, it may be purchased450for a price that is the originally displayed retail value, e.g., the retail price, minus an offset corresponding to the total of the predetermined offset amounts resulting in the final retail price that is specific to the particular bidder. At this point the item would be considered to be bought and conventional transaction and shipping processes may be applied as the process ends445. The process may also end445when the auction is no longer open and there is no indication to purchase. It is noted that the auction system can be configured to provide a predetermined time window in which the bidder may purchase the auctioned item at the reduced retail value (or full value if no bids came from the bidder) shown to the particular bidder. For example, the bidder can purchase the auctioned item for up to 1 hour after the auction closes.

The configuration as described beneficially provides potential bidders an opportunity to purchase an auctioned item at a significantly lower price than full price for an auctioned item. Moreover, the configuration beneficially allows the bidder to take advance of any bids invested in trying to win the auction by providing an offset against a retail value as set by the auction system to purchase the auctioned item at a reduced price. The reduced price advantageously gives the bidder an opportunity to be a participant in an auction, for example, for entertainment purposes, yet also provides the bidder credits to purchase the auctioned item at a fair value with credits from the auction applied so that the user is given an option to buy the item is they do not win the auction.

Example Auction Process

FIGS. 5 through 9illustrate one example auction process. Turning first toFIG. 5, it illustrates one embodiment of a user interface within a computing system for purchase of a pack of bids. In one example embodiment, users come are drawn to an auction website and either provide a universal resource locator (URL) to the auction system website or through a link, e.g., in an ad on another website, a messaging service, or electronic mail.

FIG. 5illustrates one embodiment of a user interface510displayed within a screen (or display) of a user computing system for purchase of a pack of bids. A bidder (or user), when logged into their account on the website, can acquire bid packs ($0.75 per bid). The bid pack515may be acquired through a cash or redeemable credit transaction. Cash transactions include payment services such a PAYPAL and a credit card services. Redeemable credits correspond to redeeming credits associated with the bidder that the bidder can apply to acquire bids. The redeemable credits for use with the auction system website may be obtained by participating in certain offers, receiving a gift of credits, or the like. For example, users can earn 25 bids if they take a 6-day free trial for a service such as NETFLIX or a 3-day free trial for a service such as MATCH.COM. When a bidder pays for a bid or gets redeemable credit for bids, e.g., through an offer, the auction system credits the bidder account with the appropriate number of bids. In one embodiment, a database in the computer system100stores the bid count with the user account information.

FIG. 6illustrates one embodiment of a user interface610listing auctions for which a logged in bidder may bid and a retail price for each item shown for auction. The user interface610shows the items that are being auctioned605a-c, a time and current winning bid value for the auctioned items615, a BID selectable user interface620, a BUY IT NOW selectable user interface625, and a number of BIDS LEFT630for the particular user. In this example, the bidder has354bids left as shown through the BIDS LEFT630information.

When bidding begins, bidders who have bids left in their accounts can participate in a guaranteed auction. Specifically, the auction operates as follows. In one example embodiment, new items are displayed for auction, which in this example are the three items shown (IPOD, PANASONIC HDTV, and LVMH MANHATTAN BAG)605a-c. When the item is won or bought as disclosed herein it may be shipped directly from wholesalers, although the auction system handles the facilitation of the transaction through the auction or purchase configuration as disclosed. In the example provided, the price of each auction starts at $0.00 and operates within a predetermined time period of 12 hours. Any bidders with bids left can bid on an item.

When a bidder places a bid using the BID selectable interface620as displayed on a computer system of that bidder, the bidder uses up one of their bid credits. Specifically, the auction system reduces the bid credits associated with the user account in the database of the computer system100by a value of 1. The price of the auction item increases by a pre-determined amount, e.g., $0.15, and is shown615on the bidder screen. Note that the predetermined increment is set through the auction system prior to the start of the auction. When the price of the auction item increases, the auction system increases the value of the item in the database by that amount, e.g., identify the auctioned item in the database and increase the auction_id.price_of_item by auction_id.incremental_price_per_bid. The auction clock increases by a pre-determined amount of time, e.g., 20 seconds, and is tracked accordingly in the database, e.g., increase the auction id_time_left_in auction by auction_id.incremental_time_per_auction. The most recent bidder now has the current winning bid in the auction. If nobody bids and the clock reaches time=0, this bidder will win the auction item and pay the currently showing auction price.

FIG. 7illustrates one embodiment of a user interface corresponding to a bid placed by a bidder in a guaranteed auction and a reduced retail price of the item for the bidder. Note that in the configuration as disclosed, the bidder does not have to win the auction to acquire the item. As shown inFIG. 6andFIG. 7, below each auction there is a “BUY IT NOW” selectable interface625, e.g., a selectable icon or software button, that allows the bidder, whether or not that bidder has placed a bid, to buy the auction item at the current price associated with the BUY IT NOW interface625. The BUY IT NOW625price comprises the retail price of the item minus the value of all the accumulated bids from the user.

For example, in the auction example described, a bidder places their first bid on the auction for the IPOD media player by selecting the BID selectable interface620, e.g., icon or software button. This selection sends a signal from the browser of the bidder computer system through the network126to the auction system computer system100. The auction system matches the bid and other information received from the bidder computer system with the user (bidder) account. The auction system updates the appropriate database entries for the auctioned item and user account. The auction system also provides for display updated information on the auction for the bidder computer system. Specifically, the price of the iPod goes up by $0.15, the auction clock goes up by 20 seconds, the user's number of BIDS LEFT630is now 353 (from a previous value of 354 shown inFIG. 6). In addition, the BUY IT NOW selectable interface625shows that the price to currently purchase the item being auctioned is $219.25 for the particular bidder. The site also shows that the user is currently the winner of the auction. Other participants in the auction of this item are provided for display the updated auction price and current bid leader (the bidder user identification would be shown in this example to those users rather than “YOU”). However, the other participants will be shown information on BUY IT NOW price or BIDS LEFT corresponding to their own accounts.

As for the updated retail price for the bidder, the reduced value is determined as follows. If the bidder has bid 30 times on an iPod auction (retail price=$220), the BUY IT NOW selectable interface will be priced at: $220−(30×$0.75)=$197.50. This means that the user can always buy the item at no more than its retail price. In one embodiment, the BUY IT NOW selectable interface625, and corresponding option to purchase, may be available for a predetermined period of time after the auction is completed, e.g., 24 hours.

FIG. 8illustrates one embodiment of a user interface corresponding to bid placed by a third-party bidder for the item in a guaranteed auction in which a user placed a bid. At this point in the example, the bidder has now waited to see if anyone else bids or if they win. In this case, other participants have bid on the auction item. The bidder watches the auction for a few minutes and the bidding continues. At this point, the price of the iPod has reached $15.00. In this example, the bidder is now ready to bid again and pushes the BID button for the 2ndtime. When the bid is place the BIDS LEFT630information as provided for display has been decreased by 1, the clock increased by 20 seconds, the price increased by $0.15 and the BUY IT NOW selectable interface allows for purchase at a price decreased by $0.75, all of which are reflected from the updated data in the database of the auction system in the computer system100. An example user interface provided for display on a screen of a bidder computer system reflects this information as illustrated inFIG. 9.

As previously described, it is noted that anytime during the auction, the bidder have three option available with respect to participation. First, the bidder may at any time stop bidding on the auction item and not invest any more money in the auction. The user can watch the auction or simply “walk” away. Second, the bidder can continue to bid and try to win the auction item by selecting the BID selectable interface620at any time prior to the expiration of the countdown timer. Finally, the bidder can select the BUY IT NOW selectable interface625and purchases the item at the BUY IT NOW price corresponding to the particular bidder. Hence, the bidder has an option to emerge from the auction with the auction item provided the product is available in stock and the bidder has not walked away from the auction. Moreover, in selecting the last option the bidder also is beneficially credited an amount corresponding to the bid investments made in trying to win the auction item, thereby potentially not losing any money in the process of trying to acquire the auction item.

Additional Configuration Considerations

Upon reading this disclosure, those of skill in the art will appreciate still additional alternative structural and functional designs for a system and a process for tracking bid values to offset a cost of an item available for purchase during an in-process auction through the disclosed principles herein. Thus, while particular embodiments and applications have been illustrated and described, it is to be understood that the disclosed embodiments are not limited to the precise construction and components disclosed herein. Various modifications, changes and variations, which will be apparent to those skilled in the art, may be made in the arrangement, operation and details of the method and apparatus disclosed herein without departing from the spirit and scope defined in the appended claims.