Patent ID: 8266002

Claim:
A system for facilitating a sales transaction for purchasing a retail service by a group of buyers from at least one seller over an electronic network comprising a processor configured to execute the steps of: a. receiving into the system a request to buy a product by a buyer that specifies type of said product, a maximum unit price for said product, the quantity of said product requested, and buyer's billing information; b. forming a buying group with buyers having substantially similar purchase characteristics; c. qualifying said buyer for entry into said buying group; d. establishing a buyer's escrow fee amount, of which said buyers must agree to pay if he fails to fulfill his commitment; e. receiving into the system a seller's information for a seller to qualify to submit bids; f. establishing a seller's escrow fee amount, of which said seller must agree to pay if he fails to fulfill his commitment; g. conducting a reverse auction cycle wherein a seller transmits into said system a bid to sell a product to said buying group wherein said bid includes the minimum selling price, the minimum quantity of units for sale and the maximum quantity of units for sale; h. matching buyers with a seller via a matching process when the number of products requested by buyers having a maximum unit price that exceeds said seller's minimum selling price and exceeds said seller's minimum quantity of units for sale, after said auction closes, via the following steps; 1. ranking said buyers chronologically; 2. ranking said sellers based on said unit price from lowest to highest; 3. inquiring if there are enough said buyers with offering prices higher than said seller's bid unit price to meet said seller's minimum quantity requirements; 4. assigning said buyers by rank up to the seller's maximum quantity at said seller's bid unit price if there is enough buyers with offering prices higher than seller's bid unit price to meet said seller's minimum quantity requirements; 5. skipping said seller and moving to the next ranked seller, if there is not enough of said buyers with offering prices higher than said seller's bid unit price to meet said seller's minimum quantity requirements; 6. repeating said matching process until no buyers or sellers remain; and 7. notifying all matched and unmatched buyers and sellers.