US20040133435A1 - Centralized electronic sales using a consolidator - Google Patents

Abstract

The present invention provides an electronically accessible site that lists a product and associated distributors that distribute the product to customers. A customer purchases a product from the electronically accessible site, and during the purchasing chasing process, the customer selects the distributor he wants to receive the product from. The order is received by an agent, and transmitted to the selected distributor for eventual distribution of the product to the customer. In response to the purchase, the agent and electronically accessible site receive compensation based on the amount of the purchase.

Description

FIELD OF THE INVENTION
• The field of the invention is electronic commerce.[0001]
BACKGROUND
• Acquiring items of commerce takes time. To save time, consumers often classify items in categories, and attempt to purchase multiple items from a category on each shopping trip. The categories are generally based on the type of store that sells the item. For example, a consumer may have a category for grocery store, home improvement store, office supply store, clothes store, and so on. Thus, the consumer may save time by buying more than one item on each trip to the store.[0002]
• Consumers often attempt to classify items broadly in order to save additional time. Purchases of food, clothes, home improvements, and office supplies may often be made in a single variety type store. The problem with such variety stores is that there is often less of a selection of a particular good than in a specialty store. The consumer may still have to spend time and money on trips to specialty stores to get the items he desires.[0003]
• Mail order catalogs emerged in part to help consumers save time and money shopping for goods by offering purchase of products by mail. By purchasing through mail order catalogs, a consumer could save time on travel and location of the goods. Not only were mail order catalogs time savers for many consumers, they provided the capability to purchase generally inaccessible products. For example, early catalogs such as Montgomery Wards' catalog offered items that the consumer could not easily acquire because stores may not have been close, and transportation may have been limited.[0004]
• Many of the early catalogs offered a wide variety of goods, and the consumer generally enjoyed surfing the pages of the catalogs to ponder purchase of items he may not have otherwise had available to him. Even with the entertainment value of surfing a large catalog, purchasing was a time consuming activity nonetheless.[0005]
• Electronic catalogs eventually emerged. The electronic catalogs frequently offer the same type of goods that its mail order counterpart offered. Vendors, catalog companies, and consumers all may benefit from the automation. The product vendor may have its products more widely distributed, and may have additional product distributors available to him. The catalog company may have the benefit of a larger and more accessible marketplace, alternative advertising methods, and lower cost of catalog creation and distribution. The consumer may have enhanced searching capability, perhaps a more extensive product list, as well as an incremental savings of time. A continuing problem, even with electronic catalogs, however, is that the consumer may need to visit multiple catalog sites to accomplish all of his online purchases. The need to visit multiple sites results in persistence of many of the traditional problems such as time to locate the item, and time to arrange the purchase, including entry of credit card number, name, and address.[0006]
• To solve problems related to the need to purchase from many different catalog sites, electronic variety type sites have emerged that combine the products of a plurality of catalogs. One such site is www.catalogfavorites.com. While this and other similar sites may provide relatively more products than those utilizing the products of a single catalog, there are detriments to such sales models.[0007]
• A particular detriment of a variety site may exist when there is more than one catalog (and distributor) offering the same product. In this situation, the site has the choice of choosing for itself the catalog that will receive credit for the sale and the distributor that will distribute the product. The alternative may be not listing the product at all. In either case, the consumer has no choice over who ultimately sells and distributes the product. The consumer may want to choose the distributor and catalog for a variety of reasons. The consumer may, for example, have received products that were broken during shipping, may have a family member working for one of the companies, a moral conflict with one of the companies, or may even own stock in one of the companies.[0008]
• Sites such as www.carsdirect.com are similar to variety type catalog sites because they display products from more than one car dealer. However, some of the same problems exist with these sales models. The cars that carsdirect.com sells are obtained from the car dealers, and the consumer may have reason to choose which dealer will ultimately sell him the car.[0009]
• Another problem with such electronic sales sites is that the consumer may still spend time to locate the site itself. The mere existence of electronic commerce sites on the Internet does not save a consumer time. Online searches for sites often take considerable time, and return thousands of entries many of which are entirely inappropriate. Even with automated selling, much time and effort is spent locating appropriate sites.[0010]
• Thus, there is a need to provide improved methods of electronic commerce particularly those that save the consumer time and effort and give the consumer added control over the purchase.[0011]
SUMMARY OF THE INVENTION
• The present invention provides an electronically accessible site that lists a product and associated distributors that distribute the product to customers. A customer purchases a product from the electronically accessible site, and during the purchasing process, the customer selects the distributor he wants to receive the product from. The order is received by an agent, and transmitted to the selected distributor for eventual distribution of the product to the customer. In response to the purchase, the agent and an electronically accessible site receive compensation.[0012]
• A particularly preferred embodiment of the present subject matter is directed to a method of conducting electronic commerce having an agent that consolidates data related to products and distributors into a standardized format. The agent sells the products, and also offers the data to electronically accessible sites that sell the products. The agent and the electronically accessible sites also allow the consumer to choose the distributor of the products they are purchasing. If the order is placed on the electronically accessible site, the order information is sent to the agent who forwards it to the selected distributor for shipment to the consumer. The agent receives compensation for his part in the transaction.[0013]
• Various objects, features, aspects, and advantages of the present invention will become more apparent from the following detailed description of preferred embodiments of the invention, along with the accompanying drawings in which like numerals represent like components.[0014]
BRIEF DESCRIPTION OF THE DRAWINGS
• FIG. 1 is a schematic of an online purchase made through a method or system according to the present invention.[0015]
• FIG. 2 is a schematic of the flow of catalog information.[0016]
• FIG. 3 is a block diagram of the steps of a method according to the present invention.[0017]
DETAILED DESCRIPTION
• In FIG. 1, an[0018]online purchasing method100 generally includes acustomer110, aweb site120, an intermediate130 and adistributor140. Theweb site120 hostsproduct information122 anddistributor identification124. The intermediate130 receivesorder information132 and thedistributor identification124 from theweb site120, and theorder information132 is transmitted to thedistributor140, who responds by shipping theproduct144 and payingcommission146.
• The[0019]customer110 may be any entity making an electronic purchase including business entities and automated purchasing agents. Thecustomer110, however, is typically an individual who purchases aproduct144 over the Internet, but such electronic purchases are not limited to the Internet, and may include purchases over other public or private networks.
• The term Internet generally refers to a public package switched network. The term “electronic” or “e-” as used herein and in conjunction with “purchase” or “commerce” includes transactions that are concerned with or use a device or apparatus that operates on principles governing the behavior of electrons. As used herein, the term “product” is anything that may be the subject of a commercial transaction including intangible goods and information. Two products are considered the “same product” if both have or would have the same UPC (uniform parcel code) according to UPC specifications.[0020]
• The[0021]web site site120 is an electronically accessible site, and is preferably a web site of the World Wide Web made publicly accessible by an HTTP server. The preferred web site has an associated location or URL (uniform resource locator) on the World Wide Web that may be accessed through a web browser. Productrelated information122 anddistributor identification124 may be displayed on theweb site120 to enable purchase of aproduct144.
• [0022]Preferred product information122 includes an SKU (stock keepers unit) or some other product number, a product description, and a picture of the product. Thecustomer110 may be prompted for search criteria that is used to establish a list of products matching the criteria. The list, including product relatedinformation122 anddistributor identification124, may then be displayed for thecustomer110. Thecustomer110 may choose a product and associateddistributor identification124. In a situation where the same product exists for two separate distributors, express selection of the distributor may be made.
Express Selection of a Distributor
• Express selection of a[0023]distributor identification124 may be desirable because thecustomer110 may have a preference as to thedistributor140 of the product. In a preferred embodiment, thedistributor140 may be a catalog company who has products being displayed on theweb site120 along with products of other catalog companies. Because the same product is sometimes carried by more than one catalog, there may be need for thecustomer110 to choose thedistributor identification124 associated with thedistributor140 that he wants to purchase the product from. Acustomer110 may have many reasons for choosing acertain distributor140 including, for example, a positive or negative shipping experience, a family member working for one of the catalog companies, a moral conflict with one of the catalog companies, or even stock ownership in one of the catalog companies. As used herein, the term “express” means to actively manifest or communicate, and does not include a selection by inference or otherwise a selection that is unknown to the customer.
• [0024]Order information132 includingproduct information122, customer name and address (not shown), anddistributor identification124 may be transmitted to the intermediate130. The intermediate130 may be any entity that performs a function for compensation including consolidating the products from a plurality of catalog entities into a standardized format, offering the products for sale on its electronically accessible site, offering the products for sale on the electronically accessible site of another entity, and transmitting theorder information132 to thedistributor140. The preferred intermediate operates a web site that sells products from a variety of catalogs companies, and offers the products to an web site that hosts the products on its site. For acustomer110 engaging in electronic commerce, the existence of the intermediate130 may be transparent. For example, thecustomer110 may place his order on theweb site120 and may not immediately or in the future become aware that theorder information132 flows to the intermediate130 before being delivered to thedistributor140.
• In an aspect of the subject matter, at least one additional intermediate (not shown) may exist. The additional intermediate may operate as an agent that performs a function such as forwarding the[0025]order information132 in exchange for compensation. The additional intermediate is contemplated to also have an electronically accessible site upon which the products may be sold.
• The[0026]distributor140 is an entity that distributes theproduct140. Preferably, thedistributor140 is a catalog company that sells theproduct144, and payscommission146 to the intermediate130 and possibly to theweb site120. It is contemplated that thedistributor140 may also be a manufacturer of the product. Typically, thedistributor140 addresses theproduct144 to thecustomer110, and puts theproduct144 into the delivery stream.
• Compensation paid to the intermediate[0027]130 and theweb site120 may be in the form of acommission146. In a preferred aspect, thecommission146 is a fixed percentage of the dollar amount of purchases that are consummated on the intermediate site (not shown) or theweb site120. Compensation may also be a variable percentage based on sales volume, product sold, purchasing entity, quantity ordered, or some other variable. Compensation could also be independent of sales volume.
• In FIG. 2, a system[0028]200, displaying the flow of product information, includes catalogs210, a consolidator220, the consolidator's web site222, independent web sites230, and consumers240.
• The catalogs[0029]210 include sites that engage in e-commerce and do not have a mail order counterpart. However, the catalogs210 are preferably companies that began as mail order catalogs and have expanded their presence to the Internet. The catalogs210 may or may not have their own site on the Internet, but in any case, the catalogs210 are generally willing to pay compensation to others to sell their products online.
• The consolidator[0030]220 is an entity that collects or consolidates product information from the catalogs210. The consolidator220 preferably has a consolidated web site222 to display and sell the catalogs' products. The consolidator220 may offer the product information or a subset of the product information to an independent web site230, and preferably, the consolidator provides the technology to enable the independent web site230 to access and host the product information.
• As defined herein, the term “host” means to contain and have control over. For example, an entity that hosts product information contains the product information on a storage device that the entity has at least some control over. The term “host” does not refer to an entity that facilitates sale of products by providing a link such as hypertext back to a site that has control over the product information.[0031]
• Sites[0032]230 host product information that is received from the consolidator220. Each site may have many physical and virtual locations and may include mirrored copies of the information in different locations. The hosting of the product information may occur on more than one storage device, and it is contemplated that the information may be distributed among a plurality of storage devices including RAID (redundant array of independent disks) devices.
• Referring to FIG. 3, a[0033]method300 for conducting electronic commerce (1) thestep310 of an electronically accessible site listing a product and a plurality of distributors that distribute the product to customers; (2) thestep320 of consummating a purchase by buying the product from the electronically accessible site; (3) thestep330 of expressly selecting an individual one of the distributors from which to receive the product; (4) thestep340 of an intermediate, distinct from the electronically accessible site and the selected distributor, receiving order information relating to the purchase; (5) thestep350 of transmitting the order information to the selected distributor; (6) thestep360 of the selected distributor, distinct from the electronically accessible site, distributing the product to the individual customer; and (7) thestep370 of the intermediate and electronically accessible site each receiving a compensation related to the purchase.
• Thus, specific embodiments and applications of electronic commerce have been disclosed. It should be apparent, however, to those skilled in the art that many more modifications besides those already described are possible without departing from the inventive concepts herein. The inventive subject matter, therefore, is not to be restricted except in the spirit of the appended claims. Moreover, in interpreting both the specification and the claims, all terms should be interpreted in the broadest possible manner consistent with the context. In particular, the terms “comprises” and “comprising” should be interpreted as referring to elements, components, or steps in a non-exclusive manner, indicating that the referenced elements, components, or steps may be present, or utilized, or combined with other elements, components, or steps that are not expressly referenced.[0034]

Claims (11)

What is claimed is:

1. A method of conducting electronic commerce, comprising a consolidator:

consolidating product information from a plurality of vendors;

utilizing a web site to display the information to potential consumers in a format such that ordering consumers from among the potential consumers can select from among the plurality of vendors to purchase desired products;

taking orders from the ordering consumers for the desired products, and passing the orders along to corresponding selected ones of the plurality of vendors;

receiving a commission as a function of a revenue generated from the orders;

allowing the individual consumers to purchase the desired products directly from the selected vendors; and

providing a subset of the consolidated product information to a third party that operates a second web site that competes with the consolidator's web site, and receiving a compensation as a function of the third party's revenues from same.

2. The method ofclaim 1 further comprising the step of the consolidator providing the consolidated product information to the third party in a standard format.

3. The method ofclaim 2 wherein the consolidated product information provided to the third party includes product data from at least 100 of the plurality of vendors.

4. The method ofclaim 1 further comprising providing technology to the third party to host the second web site.

5. The method ofclaim 1 wherein the step of taking orders for the desired products comprises obtaining from a consumer: a name and address; a stock keepers unit (SKU); and an identification of a selected one of the plurality of vendors.

6. The method ofclaim 1, further comprising the selected vendors shipping the desired products to the ordering consumers.

7. The method ofclaim 1 wherein the function comprises a percentage of the third party's revenues.

8. The method ofclaim 1 further comprising the consolidator collecting the revenue from the ordering consumers, and passing along at least a portion of the revenue to the selected vendors.

9. An electronically accessible web site, programmed to:

display to potential consumers product information from a plurality of unrelated vendors, in a format such that individual ones of the potential consumers can select from among the plurality of vendors to purchase desired products;

take orders from ordering ones of the consumers for the desired products, and pass the orders along to corresponding selected ones of the plurality of vendors;

receive a commission as a function of a revenue associated with the orders; and

provide contact information to the potential consumers to purchase the desired products directly from the selected vendors, instead of purchasing from the web site.

10. The web site ofclaim 9, wherein the web site is further programmed to provide contact information to an entity that sells a subset of the consolidated product information to a third party to operate a competing web site.

11. The web site ofclaim 9 further comprising the web site programmed to collect the revenue from the ordering consumers, and pass along at least a portion of the revenue to the selected vendors.

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