Patent Publication Number: US-2012036090-A1

Title: System and method for providing delivered pricing

Description:
CLAIM FOR PRIORITY  
     This application is related to, and claims priority from, U.S. Provisional Application No. 61/371,083 filed Aug. 5, 2010 titled “System and Method for Providing Delivered Pricing” the complete subject matter of which is incorporated herein by reference in its entirety. 
    
    
     FIELD OF THE INVENTION  
     The invention relates to a system, method and computer readable storage medium for providing delivered shipping pricing. More particularly, the invention relates to a system, method and computer readable storage medium enabling customers to purchase items (packing products for example) at competitive (but profitable) prices without having to determine shipping costs after putting an order together. The resulting “delivered price” for each item would include both the item price and the necessary markup to cover the order shipment. 
     BACKGROUND OF THE INVENTION  
     A number of factors make shipping unpredictable, including but not limited to: 1) orders are shipped to any number of different locations; 2) items are placed in varying quantities into orders; 3) items are priced differently from customer to customer; 4) item dimensions and weights vary widely across the catalog; 5) items are placed in varying combinations into orders; 6) each carrier provides a different rate using proprietary rules involving all of the above factors; and 7) each geographic destination potentially carries a materially different rate by volume or by weight to dictate the cost to move goods. 
     These factors make the prediction of shipping costs illusive at best. As a result, standard delivered pricing programs generally have either high risk or high margins that lead to noncompetitive prices. 
     For the foregoing reasons, there is a need for a system, method and computer readable storage medium for predicting or providing shipping costs. 
     SUMMARY OF THE INVENTION  
     Embodiments of the invention relate to a system, method, computer product and computer system for providing delivered pricing for at least one product. The method comprises receiving at least one delivery zone; providing at least one order threshold for the at least one product, the at least one order threshold including freight costs, the threshold based at least in part on a product unit cost and a freight cost based on the received destination zone. The method further comprises receiving a product quantity selection; providing preliminary delivered pricing based at least in part on the received product quantity selection; determining whether the preliminary delivered pricing meets or exceeds the at least one order threshold; and providing a total order cost, wherein the total order cost includes, the delivered pricing for at least one product based at least in part on the at least one delivery zone. 
     Another embodiment relates a computer readable storage medium comprising computer executable instructions, which when executed by a computer cause the computer to perform a method for providing delivered pricing for at least one product. The computer readable storage medium comprises receiving at least one delivery zone; providing at least one order threshold for the at least one product, the at least one order threshold including freight costs, the threshold based at least in part on a product unit cost and a freight cost based on the received destination zone; receiving a product quantity selection; providing preliminary delivered pricing based at least in part on the received product quantity selection; determining whether the preliminary delivered pricing meets or exceeds the at least one order threshold; and providing a total order cost, wherein the total order cost includes, the delivered pricing for at least one product based at least in part on the at least one delivery zone. 
     A system for providing delivered pricing for at least one product, the system comprising a server having instructions operating thereon providing delivered pricing for at least one product, the instructions comprising receiving at least one zip code; providing at least one order threshold for the at least one product, the at least one order threshold based at least in part on a product unit cost and a freight cost based on the received destination zone; receiving a product quantity selection; providing preliminary delivered pricing based at least in part on the received product quantity selection; determining whether the preliminary delivered pricing meets or exceeds the at least one order threshold; and providing a total order cost, wherein the total order cost includes, the delivered pricing for at least one product based at least in part on the at least one delivery zone. 
     The foregoing and other features and advantages of the invention will become further apparent from the following detailed description of the presently preferred embodiment, read in conjunction with the accompanying drawings. The drawings are not to scale. The detailed description and drawings are merely illustrative of the invention rather than limiting, the scope of the invention being defined by the appended claims and equivalents thereof. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS  
         FIG. 1  depicts a schematic representation of a computer system in accordance with one embodiment of the present invention; 
         FIG. 2  depicts a screen shot of a log in screen in accordance with one embodiment of the present invention; 
         FIG. 3  depicts a screen shot of an account page screen in accordance with one embodiment of the present invention; 
         FIGS. 4A ,  4 B and  4 C depict a screen shot of a quantity order screen in accordance with one embodiment of the present invention; 
         FIG. 5  depicts a screen shot of an alert screen in accordance with one embodiment of the present invention; 
         FIG. 6  depicts a screen shot of an alert and modified order screen in accordance with one embodiment of the present invention; 
         FIG. 7  depicts a screen shot of a confirmation screen in accordance with one embodiment of the present invention; 
         FIG. 8  depicts a screen shot of a final pricing and delivery screen in accordance with one embodiment of the present invention; 
         FIGS. 9A and 9B  depict a detailed flow diagram of a method of providing delivered pricing. 
     
    
    
     Throughout the various figures, like reference numbers refer to like elements. 
     DETAILED DESCRIPTION OF PRESENTLY PREFERRED EMBODIMENTS  
     One embodiment of the present invention relates to providing a method, system and computer readable storage medium for customers to purchase items (packing products for example, although other products are contemplated) at competitive (but profitable) prices without having to determine shipping costs after putting an order together. The resulting “delivered price” for each item would include both the item price and the necessary markup to cover the order shipment. 
     In addressing the inherent challenges to providing a delivered program, it was determined to bracket the most variable factors and devised a strategy to predict more exact pricing within the brackets. 
     Brackets  
     Shipping Source &amp; Destination 
     The method, system and computer readable storage medium program is segmented first based on the ship-to location. From the source location, the country is initially broken down into a plurality of Shipping Destination Zones (all zip codes (domestic and/or international) are contemplated but less than all zip codes are contemplated, 19 destination zones for example). The method, system and computer readable storage medium allows for additional zones to be applied, as well as for additional source addresses to be applied (in the event the shipper should move or start fulfilling orders through more than one location). Zoning is determined by a combination of distance and regional clustering to support popular shipping lanes. 
     Order Sizes &amp; Item Quantities 
     Since orders can vary from a single item to a truckload of goods, bracketed order sizes are based on the total dollar amount of the order. Delivered Pricing Tiers were created to apply a delivered rate once a minimum price break is reached (initially $1,000 for example) and to adjust rates at price breaks if larger totals ($2,500, $5,000, etc.) are realized. 
     Item Pricing 
     There are a number of price classes in the existing pricing structure, so the program takes into account the different quantities necessary to build orders reaching each Delivered Pricing Tier. 
     Item Dimension &amp; Weights 
     A packaging/palletizing optimization program was used to determine what quantity of a given product could fit into a maximum size/weight parcel and/or pallet to ensure the best possible shipping rates. 
     Item Combinations 
     To avoid restricting users to exclusively purchasing one item (or a pre-packaged combination of items) at a time, the combination of items within an order remained variable. 
     Carrier Rates 
     Carrier rates vary widely on many different factors. Based on some broad general rules regarding size and weight (maximum weight for parcel, etc), certain carrier services are programmatically excluded from some quotes. 
     Shipping Cost Prediction Strategy 
     Since every item in the catalog has its own unique dimensions and weight. Embodiments include a strategy to predict shipping costs for the items within orders for each bracketed Shipping Destination Zone and Delivered Pricing Tier. Final rates are fine tuned according to actual carrier rates as dictated by exact zip code. 
     In accordance with one embodiment, the method, system and computer readable storage medium create sample package-optimized orders per item, per Shipping Destination Zone, per Delivered Pricing Tier and/or threshold. The sample orders are run through another program that elicits shipping quotes from all applicable carriers. The rates are stored, and a per-unit price with associated shipping charges is calculated, to apply to the item for each item/Shipping Destination Zone/Delivered Pricing Tier combination in the Program. 
     Ordering Process 
     Unlike traditional ecommerce, in at least one embodiment, the method, system and computer readable storage medium for Packaging Delivered Pricing Program begins with the entry of the destination zip code. From this zip code, the method, system and computer readable storage medium sets the appropriate Shipping Destination Zone. Item prices displayed represent the first Delivered Pricing Tier in that Destination Zone. If the order subtotal grows to exceed the minimum requirement for a new Delivered Pricing Tier, prices in the cart are updated to represent that new Tier. The method, system and computer readable storage medium allows the customer to change the destination zip code at any time, with the understanding that the cart will be recalculated to present the pricing in a new Shipping Destination Zone if applicable. Upon checkout, the destination address must utilize the same zip code used during the building of the order. 
     Result: 
     Using the method, system and computer readable storage medium of the Packaging Delivered Pricing Program, customers can purchase items at competitive (but profitable) prices without having to determine shipping costs after putting an order together. Shipping quotes and carrier selection are no longer necessary in the user-experience, and the item rates cover the shipping costs to the desired destination without requiring a lofty overhead margin. 
       FIG. 1  provides a schematic representation of a computer system including instructions generally designated  10 , for selling a business in accordance with one embodiment.  FIG. 1  depicts a plurality of users communicating with the server  22  using one or more user interface devices via any hardwired or wireless communication network, including PCs  12  and  16 , laptops  14 , tablets  18 , PDAs  20 , cell phones and smart phones (not shown) and the like. In at least one embodiment, the server  22  includes memory and databases for storing instructions and data, the data comprising a set of programs and a dataset having one or more data fields; and processing devices or processors executing the instructions and processing the data necessary to operate the method or providing delivered pricing as provided below. 
       FIG. 2  depicts a screen shot of a log in screen generally designated  24  in accordance with one embodiment of the present invention. As illustrated, log in screen  24  includes a user name entry field  26  and password entry field  28 . The user enters his user name in user name entry field  26  and password in password entry field  28  to access the system  10 . In at least one embodiment, log in screen  24  enables the user to directly enter product number and quantity in the quick order field  30 .  FIG. 3  is a screen shot of an account page screen  32  in accordance with one embodiment. Screen shot  32  includes a destination zip code entry field  34 . The method defaults to a previously used zip code or enables the user to enter a new delivery zip code using the destination zip code entry field  36 . Screen  32  displays user account information  38 , billing address information  40  and default shipping address information  42 . Screen shot  32  further includes a product category selection portion  44  displaying different products by category including, boxes-corrugated, chipboard cartons/pads, bubble &amp; foam product, edge protection, strapping guards, labels, loose fill, mailing envelopes, and the like. In at least one embodiment, the user rolls his mouse over one of the products in the product category selection portion  40  to display a plurality of different products in one or more product categories. 
       FIGS. 4A ,  4 B and  4 C depict a screen sheet of the quantity order screen, generally designated  46 , for placing orders for specific quantities of one or more products in accordance with at least one embodiment. In at least one embodiment, screen shot  46  enables a user to directly enter dimensions in one or more length, width and depth fields  48 . Screen shot  46  further displays or provides a minimum threshold amount alert  50 . In the illustrated embodiment, the minimum threshold alert  50  ($1000 for example although different thresholds, $300 or more, are contemplated) includes freight costs. Additionally, the screen shot  46  provides one or more model numbers  52 , one or more product size and/or descriptions  54 , one or more delivered unit pricing  56 ; one or more minimum quantities  58 , one or more order entry fields  60 , and one or more order buttons  62 . Furthermore, in at least one embodiment, the delivery unit pricing may include at least some or all of the freight. 
       FIG. 5  depicts a screen shot illustrating an alert screen, generally designated  82 , in accordance with one embodiment of the present invention.  FIG. 5  depicts alert  64 , shopping cart  66 , a continue shopping button  68 , an empty cart button  70 , an update car button  78 , and a check out button  80 . In at least one embodiment, the alert  64  displays the order total, freight to pay and amount the order subtotal is from the minimum. In screen shot  82 , the subtotal is $2.87, which is $997.14 distant, spaced or away from the threshold. 
       FIG. 6  depicts a screen shot of an alert and modified order screen, generally designated  84 , in accordance with one embodiment of the present invention.  FIG. 6  depicts alert  64  for an order (similar to that illustrated in  FIG. 5 ) that has been altered or changed, using update cart button  78  for example. Screen shot  84  provides shopping cart  66 , continue shopping button  68 , empty cart button  70 , update cart button  78 , and check out button  80 . In at least one embodiment, the alert  64  displays the order total, freight to pay and amount the order subtotal is from the minimum. In screen shot  84 , the subtotal is $43.40, which is $956.60 distant, spaced or away from the threshold. 
       FIG. 7  depicts a screen shot of confirmation screen, generally designated  86 , in accordance with one embodiment of the present invention.  FIG. 7  depicts confirmation alert  76 , shopping cart  66 , continue shopping button  68 , empty cart button  70 , update cart button  78 , and check out button  80 . In at least one embodiment, the alert  64  displays the order total, freight to pay and amount the order subtotal is from the minimum. As illustrated, alert  76  provides that the threshold has been reached.  FIG. 8  depicts a screen shot of a final pricing and delivery screen, generally designated  88 , in accordance with one embodiment of the present invention. Screen sheet  88  provides shipping address field  90 , that enables the user to enter shipping address and other information.  FIG. 9A-9B  depict a detailed flow diagram of a method, generally designated  100 , for providing delivered pricing in accordance with one embodiment. Method  100  includes receiving a destination zone, a destination zip code for example, block  102 . The method  100  includes determining an order threshold based at least in part on the zip code, block  104 . The method  100  further includes providing a product category selection, block  106  and receiving a product category selection, block  108 . Method  100  further includes providing an order threshold and product quantity selection, block  110 , and receiving product quantity selection, block  112 . 
     Method  100  further includes determining whether the order threshold has been reached, diamond  114 . If the threshold has been reached, the method  100  provides a confirmation of threshold and order amount, block  116 . If the threshold has not been reached, the method  100  provides an alert and order amount, block  118 . Method  100  further determines if the order amount is updated, diamond  120 . If the order is updated, the method  100  determines if the order threshold has been reached, block  114 . If the order is not updated, the method  100  provides final pricing and delivery information, block  122 . 
     It is to be understood that the above described embodiments are merely illustrative of numerous and varied other embodiments which may constitute applications of the principles of the invention. Such other embodiments may be readily devised by those skilled in the art without departing from the spirit or scope of this invention and it is intended that they be deemed within the scope of this invention.