CA2284409A1 - Computer system and method for electronic commerce incorporating multiple wholesale supplier, multiple fulfillment centers and retailer remuneration - Google Patents

Computer system and method for electronic commerce incorporating multiple wholesale supplier, multiple fulfillment centers and retailer remuneration Download PDF

Info

Publication number
CA2284409A1
CA2284409A1 CA 2284409 CA2284409A CA2284409A1 CA 2284409 A1 CA2284409 A1 CA 2284409A1 CA 2284409 CA2284409 CA 2284409 CA 2284409 A CA2284409 A CA 2284409A CA 2284409 A1 CA2284409 A1 CA 2284409A1
Authority
CA
Canada
Prior art keywords
retailer
customer
supplier
information
item
Prior art date
Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
Abandoned
Application number
CA 2284409
Other languages
French (fr)
Inventor
Peter T. O'brien
Current Assignee (The listed assignees may be inaccurate. Google has not performed a legal analysis and makes no representation or warranty as to the accuracy of the list.)
Individual
Original Assignee
Individual
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Individual filed Critical Individual
Priority to CA 2284409 priority Critical patent/CA2284409A1/en
Priority to CA 2320578 priority patent/CA2320578A1/en
Publication of CA2284409A1 publication Critical patent/CA2284409A1/en
Abandoned legal-status Critical Current

Links

Classifications

    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q30/00Commerce
    • G06Q30/06Buying, selling or leasing transactions

Abstract

An electronic retail method and computer system or e-Commerce Web application for facilitating online purchasing by a plurality of customers, involving at least one wholesale supplier, one fulfillment center, and a plurality of bricks-and-mortar retailers. This method and system avoids the "cannibalization" of the traditional wholesaler-retailer distribution channels by remunerating a retailer for any online sales made to customers within an agreed radius of the retailer's bricks-and-mortar store, in exchange for the retailer providing pre or after sales support should it be required. The method expands on the existing methods of purchasing goods and services via e-commence by offering on one Web portal, goods and services from many wholesale suppliers and manufacturers on a single integrated electronic catalogue, and by processing orders for multiple items, that may be fulfilled by more than supplier or fulfillment center. The application obtains the customer's postal code (zip code) early in the purchase transaction session, and displays a local retailer's address and promotional information for each item viewed. The business model has been named e-Commerce in Partnership TM

Description

BACKGROUND OF'I'EIE SON
With the rapid introduction of online buying and selling on the Internet World Wide Web, so called "e-Commerce", the livelihood of many bricks-and-mortar retailers is in jeopardy.
First, online shopping threatens those retailers who sell well known brands of products because either the customer is already familiar with the product, or it is easy for the customer to examine the product in a retail setting, undertake some comparison-shopping on the many Web shopping sites, and to make her purchase from the online supplier with the lowest price. Second, some wholesale suppliers are establishing e-Commerce shopping sites, keeping the retail margin from online sales for themselves, and diverting customers from their retailers, a process referred to as "cannibalization of the traditional distribution channels".
Other large wholesale suppliers would like to sell directly to the consumer on the Internet; however, they are constrained by the risk of alienating and losing their retail customers. That is, they are not prepared to cannibalize their existing distribution channel. The retail channel is vital to most wholesale suppliers today because it still accounts for the majority of their sales revenues.
Several companies have developed large custom online shopping sites, such as amazon.com, yahoo.com and carpoint.com, to exploit e-Commerce. Other companies such as BroadVison of Los Altos CA have developed and patented a methodology and computer system to facilitate the development of e-Commerce sites. The current state-of the-art e-Commerce sites include methods for presenting the products to the customer, allowing the customer to browse the electronic catalogue, and to purchase and pay for her goods or services online. Many software packages are commercially available containing this core e-Commerce fiurctionality such as IBM's Net.Commerce, Netscape's Merchant Xpert, Oracle's iStore and iPay, and Macromedia's Drumbeat 2000 e-Commerce Edition. Some companies such as yahoo.com have developed so called "e-Commerce Portals". They offer a service to retailers that allows them to create and maintain their own "storefibnY' and their own electronic catalogue where the customer enters the shopping site through the Internet address (URL) of the shopping portal, browses the collective electronic catalogue that includes all the retailers' products, and is re-directed to the retail "storefront" when the customer selects an item to purchase. Still other companies such as Microsoft Corp. offer services to the retailer that allows them to create and maintain their own "storefront" and their own electronic catalogue, but within their own Internet address (LJRL).
This invention incorporates and utilizes the state-of the-art functionality available commercially, but also incorporates a unique business model and computer fimctionality to improve on the currently available methods.
We claim to have defined a unique method and invented a computer system to assist the wholesale suppliers to sell directly to the consumers on the Internet and still preserve their value chain and distribution channels, by including the sales representatives, and the retailers in a unique e-Commerce method. We have identified a vital role for the retailer in e-Commerce, that includes instilling trust in consumers' minds during an online purchase, providing after sales service, and assuring the consumer that she has the choice to shop locally or purchase goods on the Web D 1999 PeberT. O'Brien Page 2 e-Commeroe in Partnership""
but at the same time remain loyal to her local retailer. We call the business model "e-Commerce in PartnershipTM".
The products that we expect will be sold initially by this method are non-brand name products. The consumer is not able to easily perform comparison-shopping on the Web for these types of product. These products typically retail at a high mark-up factor (e.g. jewelry, giftware and hand crafted luxury products). The products are usually sold through retail stores that typically specialize in one type of product We believe that the primary reason for online customers' reluctance to make their first e-Commerce purchase is lack of trust. When looking at a non-branded type of product on our Web site, the consumer does not have a familiar brand name to reply on, however, with this method he or she sees a familiar retail store name and has the confidence to make her purchase knowing that her local retailer will stand behind it. This method substitutes trust in a local retailer, for trust in a globally known brand name. We call this marketing technique "Brand Name SubstitutionT'"". The Web application in this method finds the closest retail outlet for each item purchased by matching the customer's postal code with the retailer's postal code. The customer receives pre or after sales service in the retail store assigned on her sales receipt at the time of purchase.
The method can be applied to any type of goods or services purchased online, for which a traditional distribution channel exists.
SIIMMAItY OF THE )NVEN'TION
The invention is both a business model and a computer system, or Web application, that is required to implement the functionality required to support the business model. The business model improves on the conventional Web based online retailing in that it provides for a consumer's online order to be fidfilled from a plurality of wholesale suppliers or fulfillment centers if necessary.
Furthermore, the business model departs fibm the conventional implementation of a retail e-Commerce application in that it rewards the retailer when a consumer in his geographic region makes a purchase, rather than the wholesale supplier bypassing the retailer and keeping the retail mark-up and sales representatives' commissions. The Web application is an e-Commerce shopping portal and an electronic data interchange system, implemented over a wide area network that includes multiple wholesale suppliers, fulfillment centers and bricks-and-mortar retailers. The method expands on the services of existing e-Commerce shopping sites, by offering on one Web portal, goods and services from many wholesale suppliers or manufacturers, and providing after-sales service from the many retailers associated with each wholesale supplier. The online shopping application obtains the customer's postal code, or zip code, early in the purchase transaction session, and displays a local retailer for each item viewed.
The Web application is implemented at a data center that provides the computer services through which all the users connect. This data center could be implemented at one of the wholesale supplier's corporate offices, or it could be a separate entity charging for the services on an outsourcing basis.
The application contains the fimctionality included in many of the state-of the-art online shopping applications currently implemented, and currently available in packaged software, such as catalogue browsing, the "shopping cart", and payment validation.
However the invention consists of unique computer applications that are required to implement the functionality to support the e-Commerce in ParriiershipT'" business model.
~ 1999 PeberT. O'&ien Page 3 e-Commeooe in Parfiership'""
Using this method, the wholesale supplier (via his fulfillment center) ships the products directly to the consumer and credits the retailer with a commission for the sale.
Alternatively, the supplier may choose to drop ship to the retailer of choice, and the customer may pick up her goods from the retailer's store. The data center retains a commission and processing fee and submits the net sales proceeds to the appropriate wholesale suppliers.
Where no retailer exists in the consumer's area, the wholesale supplier and the data center each retain a higher portion of the retail margin. The invention includes a method for calculating the amounts due to the retailer etc., based on a parameter driven system, and sending this information to the parties involved.
When the customer confirms her purchase and makes her payment to the data center via the Web application, the order information is transmitted to one or more fulfillment centers assigned by the wholesale suppliers, from which the goods are shipped (or the services provided). Each fulfillment center involved in the order ships the product to the customer, and sends back the waybill information to the data center. The business relationships between the data center, the wholesale suppliers, the fizlfillment centers, and the retailers defines the commissions and processing fees charged and paid to each party. The data center will process the financial transactions and transmit them to each party involved.
BRIEFDE9CRIPTIONOFTI-lE DRAWll~IGS
FIG. 1 shows an overview of the wide area network and the local area network in the data center.
FIG. 2 is a data flow diagram showing the primary transactions passed between the users of the system and the data center relating to e-Commerce.
FIG. 3 is a data flow diagram showing the transactions passed between the users of the system and the data center relating to the creation and maintenance of the wholesale suppliers' and retailers' information and customer returns.
FIG. 4 is an entity relationship diagram showing the database schema and the relationships between the database tables required to store the wholesale suppliers' and retailers' information.
FIG. 5 is an entity relationship diagram showing the schema and relationships between the database tables required to store the customers' order information.

I. Overview This section describes the detailed design of the fimctional components of an elech~onic retail method and computer system, and an electronic data interchange method, over a wide area network that includes multiple fidfillment centers and financial participation by bricks-and-mortar retailers local to the customer. The method expands on the existing methods of purchasing goods and services via e-Commerce, by offering on one Web portal, goods and services from many wholesale suppliers and manufacturers, and providing after-sales service from the many retailers associated with each wholesale supplier. The online shopping application obtains the customer's postal code, or zip code, early in the purchase transaction session, and displays a local retailer for each item viewed. The method allows the customer to buy goods or services finm any number of wholesale supplier's catalogues, and to concurrently perform searches across multiple catalogues in a seamless manner.
~ 1999 Peter T. O'Brien Page 4 e-Commerce in PartnershipTM
Some of the components of the computer system consist of commercially available "package software" or services - these components are described herein only in terms of the fimctionality they provide. Other components required to be constructed specifically for this application are described in detail herein. The application could be built using any number of computer languages, database servers, and commercially available software packages for the traditional e-Commerce modules. Therefore the design specifications for the components unique to the invention are described herein at a level of detail sufficient such that a competent systems analyst, experienced in this type of application, will be able to use these design specifications to produce low-level programming specifications for system development in the language or languages of his choice.
The computer system or Web application is event driven, so the application design is described in terms of the physical components, the database design, data flow, and the data processing logic associated with the main events that occur in the day-to-day use of the application.
2. Physical Components The physical components of the system are part of a wide area network, as shown in FIG. 1. The Internet (1), or its logical successor in years to come, is the transmission layer of this system. The users of the application communicate with the Web application via a thin client Web browser, such as Microsoft Explorer or Netscape Navigator, to view the Web pages sent to a terminal, such as a personal computer, WebTV terminal, a telephone Internet terminal or a mobile computer, connected to the Internet by wireless, or any similar device. The customer uses her Internet terminal (2) to do her online shopping. The bricks-and-mortar retailer (5) may use an Internet terminal to enter his wholesale orders and to receive reports from the data center (6). It is not mandatory for the retailer to have an Internet ternvnal in order to participate, because if a retailer does not have an Internet terminal, information may be sent to him fibm the data center (6) using a facsimile machine or other alternative messaging method such as voice mail or e-Mail. The fulfillment center has an Internet terminal (3) and the wholesale supplier (10) has an Internet terminal (4) on which order information is received and through which the wholesale supplier's data may be maintained. The data center (~ includes a local area network on which there is a Database Server (9) connected to a Web Application Server (8) which is in turn connected to a Web Page Server (7).
Additionally, a firewall security server (11) may be places between the Web server (7) and the rest of the network in the data center. Some or all of these components may be merged into a lesser number of components in future as the available technology changes.
3. Database Design The system utilizes a commercially available relational database server such as Microsoft SQL Server 7.0 or Oracle 8i. The server allows the creation and maintenance of a database schema. The application populates and maintains tables of data using a standard command and data flow interface such as PIJSQL, SQL or ODBC. The application could also be implemented in a non-relational database, which supports the required business rules.
The database for a Web based shopping portal contains a multitude of tables and relationships. Those tables and relationships specifically required to support the business model are shown in FIG. 4 and FIG. S.
D 1999 Pnber T. O'Brien Page 5 e-Commerce in PartnershipT~' In this application a supplier may be a wholesale distributor or a manufacturer that traditionally sells his products or services through bricks-and-mortar retail outlets. The supplier may perform his own fiilfillment or outsource the warehousing and shipping fitncrions to an outside fi,rlfillment center.
Each supplier has many bricks-and-mortar retail outlets (41) that buy items (45) finm him. The information pertaining to the relationship between the supplier (40) and the retailer (41) is stored in a cross-reference table (42). This information includes the percentage of the sales commission payable to the retailer for online sales to a customer in their region. Several commission rates based on criteria defined by the supplier may be applicable.
For each retailer, the supplier may offer one or more items (45), i.e. goods or services, at a special discount or price. A cross-reference table (44) contains information relating each item in the supplier's catalogue (45) to each retailer (41 ).
Each supplier, or manufacturer, uses one or more fulfillment centers (46) to warehouse and ship the items (45) to the customer. These may be the local packing and shipping departinent or an outside facility performing the warehousing and shipping services. One fulfillment center (46) may provide services for many suppliers (40) and the information pertaining to each fulfillment center/supplier relationship is stored in a cross-reference table (47).
Each retailer (41) has a valid postal code or zip code that is part of his address. In addition, there exist many zip codes within one or more pre-defined radii of the retailer's store. When a new retailer is registered with the system, the application scans every postal code or zip code in the zip code table (48) for the country in which the retailer exists, and makes an entry in the retailer zip code table (49) for every zip code or postal code which exists within one or more predefined radii of the retailer's zip code or postal code.
When the customer (50) places an order online for the first time this creates a new entry in the customer table (50). When the customer places an order online, this creates an entry in a customer invoice table (51). The ship-to address on the customer's invoice has a valid zip code (48). Each customer invoice has one or more invoice items (52), each of which is related to both a catalogue item (45) and the fulfillment center (46) responsible for shipping the item to the customer.
4. Induction of a new fulfillment center When a new fulfillment center is added to the system, the application provides a fulfillment center table maintenance screen, which may be a thin client application conning on an Internet terminal, e.g. a Web browser, that is used to insert and modify records in the fulfillment center table (46).
5. Induction of a new supplier When a new supplier is incorporated in to the system, the application provides a supplier table maintenance screen, which may be a thin client application running on an Internet terminal, e.g. a Web browser, that is used to insert and modify records in the supplier table (40). This allows the user to create new entries in the database for the corporate information e.g. name, address, standard retail markup, and other parameters. The next task is to populate the electronic catalogue at the data center with the required records about the supplier and about the goods or services offered. The first method provided by the application is a bulk insert of the supplier's catalogue ~ 1999 PeterT. O'&ien Page 6 e-Commeroe in PartnershipT""
items from a suitable intermediary file such as a comma delimited ASCII file.
The second method provided by the application is an item table maintenance screen, which is a Web page used to insert and modify records in the catalogue item table (45). This application also allows the user to add graphical pictures or multi-media objects related to a particular catalogue item. The final task is to enter one record in the supplier/fialfillment center cross-reference table for each fulfillment center that the new supplier uses to warehouse and ship his products. The application provides a supplier/fulfi(lment center cross-reference table maintenance screen, which is a Web page used to insert and modify records in the supplier/fulfillment center cross-reference table (47).
The system provides a thin client interface to the application for the supplier. When the supplier accesses the application, he must enter an assigned identifier and password. The unique requirement is that the Web application only shows the supplier his information - his catalogue items, his retailer database, and his report data (27). This requirement is satisfied by maintaining a "view" of the database for each supplier, based on his unique identifier, in the supplier table (40). This identifier is also stored in the item table (4~ and the retailer/supplier cross-reference table (42). When the supplier uses the Web application to view or edit his retailers' data at the data center, only those retailers in the retailer/supplier cross-reference table (42) that have his supplier )D are shown or accessible. When the supplier uses the Web application to view or edit his product catalogue data at the data center, only those products in the item table (45) that have his supplier ID are shown or are accessible.
When the supplier uses the Web application to view online sales reports (28), the only records aggregated are those in the customer invoice item cross-reference table (52) that have his supplier 117. When the supplier uses the Web application to view online sales reports by retailer, the only records aggregated are those in the customer invoice item cross reference table (52) that have the retailer ID.
6. Induction of a new retailer When a new retailer is incorporated in to the system, the application provides a retailer/supplier table maintenance screen, which is a Web page used to insert and modify records in the retailer table (41) and the retailer/supplier cross reference table (42). A second optional method is to capture the retailer information off line on a sales representatives' mobi'.p computer, and to download it later to the data center via the Internet.
When a new retailer is added to the database using either method, all the valid zip codes within one or more pre-defined radii are derived and stored in the retailers' zip code table (49). The application only selects possible zip codes that exist within the same country as the retailer, e.g. Canada or the USA. When a new retailer is registered with the system, the application scans every postal code or zip code in the zip code table (48) for the country in which the retailer exists, and makes an entry in the retailers' zip code table (49) for every zip code or postal code which exists within one or more predefined radii of the retailer's zip code or postal code.
In the zip code table (48), the geographic location of each zip code is defined in terms of decimal degrees of north latitude and degrees of west longitude. Because of the spherical shape of the Earth, calculating the exact distance between two zip codes requires the use of spherical geometry and trigonometric math fimctions.
The application first populates a temporary table of all zip codes and their distance to the retail store zip code (zipl). The distance between the retail store zip code, and each other possible zip code (zip2) is derived using the D 1999 PeterT. O'&ien Page 7 e-Commerce in Partnership T""
following algorithm. The radius of the Earth is assumed to be 6,371 kilometers, or 3,958.75 miles. Exact distance in miles =
3958.75 * arccos[sin(zipl.lat/57.295B) * sin(zip2.lat/57.2958) +
cos(zipl.lat/57.2958) * cos(zip2.lat/57.2958) * cos(zip2.lon/57.2958 -zipl.lon/57.2958)]
Next, the application inserts rows in a cross-reference table (49) for each the zip code in the temporary table which falls within one or more pre-defined radii of the new retail store, as defined by system parameters or parameters specific to an individual supplier, e.g. 5 miles, 10 miles, 25 miles, 50 miles and 75 miles. The distance between the retail store and each of the zip codes is stored on these cross-reference records (49) 7. Customer Logon When the customer connects to the shopping portal via the Internet the Web application sends a request to her browser to read the "cookie" file on her Internet terminal, and return her Preferred Shopper 1D, postal code, etc. A cookie file is a text file containing information that the Web application wants to store on the customer's Internet terminal. If she has previously made a purchase through the system, then the Web application extracts her customer profile information using her 1D, stores her postal code, and displays the shopping home page. If she has never used the site, no cookie will exist and the Web app displays an alternative home page for first time users, containing insmzctive information. The customer is prompted to register as a Preferred Shopper, to enter her postal code or zip code and to choose her ID and password for future use. The application detects whether she is connected from a Canadian or a US location by parsing the postal code entered, and validates the code entered against the database of known postal codes and zip codes (48) and if necessary, displays an error message and prompts here to re-enter the code.
If the customer chooses not to supply his or her postal code, the application still lets the customer browse the catalogue. However, when a product detail Web page is requested, the application prompts again for her postal code so that the retailer information may be selected from the database and displayed. If the customer still chooses not to supply his or her postal code, no retailer information will be displayed alongside the product information, however, the customer must supply a valid postal code when she "checks out"
and pays for her order, so that the credit for each item on her invoice (51) may be attributed to the appropriate retailer (41). The application then retains the postal code entered in the customer's profile both in the database and in the cookie file stored on her Web terminal for use when next she logs into the data center Web site.
In the event that a repeat customer logs into the Web application from a new Internet terminal, no cookie file will exist. The application prompts her to enter her Preferred customer ID on the home page, and selects her profile information from the database and creates a new cookie file on her new Internet terminal.
8. Cata~gue Browsing When the customer wants to look for items to purchase, she is offered a wide choice of different methods to search the item catalogue. In addition to the conventional browsing methods included in commercially available online shopping systems (e.g. search by item identifier, by product group or sub-group, or by gift-giving occasion), the system offers the unique ability to display items by supplier and by retailer.
D 1999 Peter T. O'Brien Page 8 e-Commerce in Partnership"
9. Display Catalogue By Supplier When the customer selects this option, the application presents a pull down picklist of the suppliers that choose to display their catalogue to the public, showing the suppliers' names and a brief description of the type of products they offer. The customer picks a supplier from the list, and she is then offered a fiuther choice of browsing using the conventional drill down methods, or browsing through the supplier's catalogue in a manner that emulates turning the pages of a conventional paper printed catalogue. In the former case, all the conventional drills down searches are constrained to only those items containing the selected supplier identifier.
In the latter case, the Web application selects the items by the selected supplier, and displays them on the Web page using the page number, and x,y page location stored in the item table (45) for each item to group the items by catalogue page. For example in the Sequential Query Language (SQL) the qualifying items could be selected as follows:
SELECT DISTINCT item_id, description, retl~rice, cat~age_num, cat~age~os x, cat~age~os~r, hires~hoto FROM item WHERE aupp id = selected_supp_id ORDER BY cat_page num, cat~age~os x, cat~age~os.y;
Where selected supp id is the unique identifier of the supplier picked by the customer.
10. Display Catalogue by Retailer When the customer selects this option, the application presents a pull down picklist of the available search radii, e.g. 5 miles, 10 miles, 25 miles, and 50 miles. When the customer selects the search radius, the application presents a second pull doww picklist of the showing the retailers' names and a brief description of the type of products they offer. The customer then has the option to browse a sub-set of the item catalogue using the conventional drill down searches. The searches are constrained to only those items that contain the supplier identifier in the set defined by the supplier identifier in the retailerlsupplier cross-reference table (42). Note that the results returned do not necessarily represent the items that the retailer may have in stock in his bricks-and-mortar store, but rather rhc Gems that his suppliers have in stock available for purchase online.
The selection may be executed in many ways in many programming languages. For example in SQL
temporary tables could be used to derive the qualifying suppliers, and then the items corresponding to the search criteria as follows:
SELECT DISTINCT retl supp xref.supp id INTO temp_supp_list FROtvi retl_supp xref, retl_zip code WHERE retl_supp xref.retl_id = retl_zip code.retl_id AND retl zip code.supp miles <= selected radius;
Where selected radius is the distance specified by the customer. Then ...
SELECT item.item_desc, item.item_retail~rice FROM item, temp supp list WHERE item. product group = selected~roduct group At~ item.supp id = temp supp list.supp id;
D 1999 Pe4er T. O'&ien Page 9 e-Commerce in PartnershipT'"
Where selected~roduct-group is the product type specified by the customer.
11. Rdailer Lookup When the customer requests more detailed information on a specific item, the application selects the detailed product information from the item table (45) and then searches for the logo and address information for the bricks-and-mortar retail store closest to the zip code or postal code the customer has specified. It uses a query based on the table of known retailers (41) and a table of zip codes within specified radii of the retail store (49). The SQL
query to obtain the possible retailers in the customer's area that are related to the item is as follows:
SELECT retailer.retl_id, retailer. address, retailer. logo, retl_zip code.supp miles FROM retailer, retl zip code, retl supp xref WF~RE retl_zip code. zip code_id = customer zip code_id AND retl_zip code.supp miles <= search_radius AND retl_supp xref.supp id = search_supp id AND retailer.retl id = retl supp_xref.retl_id ORDER BY retl zip code.supp miles;
Where search radius is the maximum distance specified by the customer, customer zip code id is the customer's postal code, and search supp id is the identifier of the supplier that sells the product, derived finm the item being displayed. Alternatively, the acceptable radii from the customer's specified address to the retailer's bricks-and-mortar store may be derived from a database of rules. If this query returns more than one retailer the exact same distance from the customer, then the application prompts the customer to pick one retailer finm a list, otherwise the application selects the first retailer in the result list returned by the query and displays the retailer's address, the distance in miles between the customer's specified zip code and the retailer's zip code, and the image data for the retailer's logo and/or promotional infomlation such as a storefinnt picture, on the Web page alongside the product information. Alternatively, the application may be configured to always present a list of retailers within the specified radius so that customer may pick the most familiar retailer to be displayed with the product information.
If there is no retailer, the customer may increase the radius of the search up to a maximum specified by a system parameter. If there is no retailer available and the customer confirms the purchase, the application makes a note on the customer invoice item (52) that the retailer commission is zero.
12. Shopping Cart A "shopping cart" is a software module that keeps track of the items added to the order by the customer, and displays the order lines and totals on demand. When the customer clicks on the "add to shopping cart" button next to an item displayed on a Web page, the application adds items she wants to purchase to a "shopping cart". This fimctionality may be custom developed or may be provided by a commercially available shopping cart software utility or service, but in either case, the application also appends the identifier of the retailer, the wholesale price, the commission due to the data center, and the commission due to the retailer, to the record added to the temporary table used to store the "shopping cart" items.
~ 1999 PeterT. O'Brien Page 10 e-Commerce in PartnershipT""
When the customer uses the shopping cart function to "check out" and she submits her payment information, the application validates her payment and displays her sales receipt. It also displays against each item on the order, the unique ID of the retailer who has been assigned to the order item. It inserts a new row in the customer invoice table (51) containing her unique customer ID and the unique invoice ID for the order, and inserts one or more rows in the customer invoice item table (52), containing the item infom~ation, the identifier of the retailer, the wholesale price, the commission due to the data center, and the commission due to the retailer. The amounts due to each party are calculated using the commission parameters stored on the Whole supplier table (40) and the retailer/supplier cross-reference table (42). In some instances, there may be special commission applicable for a particular item, and this information is stored in the retailer/item cross-reference table (44).
The customer is prompted to print a copy of her sales receipt showing the retail outlets assigned to provide after sales support for each item (provided such retailers exist within a preset radius of the customer's home or other preferred postal code).
13. Shipping Calculations Because the items on the customer's order may be shipped from more than one fizlfillment center, when each item is added to the shopping cart, the shipping charges associated with the item are calculated and added to the total shipping charges for the customer's order. When more than one item is to be shipped finm the same firlfillment center, the total weight of the items from the same fiilfillment center may be used to derive the appropriate shipping charge, and the total order shipping charge adjusted accordingly. Alternatively, the distance firm the fulfillment center's postal code to the customer's postal code may be calculated finm the latitude/longitude information, and used to derive the shipping charges applicable. Note that in some cases, the shipping charge may be absorbed by the data center or by the supplier, for example if the item ticket price is over a specified minimum, in which case no shipping will be charged on the customer's order. This rule is implemented by storing a flag on the item table (45).
14. Construct Ship Requests When the customer clicks the "check out' button and fills c~.rt her payment method information, the application validates and approves her payment, and prepares the order information for the firlfillment centers.
The application sorts the customer-invoice-item (52) rows for the order in question by fulfillment center ID. It then groups the order lines for each fi~lfillment center (46) into "sub-orders" and const<ucts the data interchange message to be sent to the fulfillment center as the "ship request' (26). This process is repeated for each fulfillment center involved with shipping the customer's order items.
If the fulfillment center and the corresponding supplier are different entities, then this ship request message is also sent to the supplier (31) who extracts the information finm his online reports available through his Web terminal interface to the data center (28) and passes it on to his corporate order entry system.
15. Shipping Confirmation When the customer's items are packaged and the shipping information is known, the fulfillment system will constnrct a message containing the customer's invoice number, the fulfillment center ID and the waybill number for tracing the package with the carrier. The system at the fulfillment center passes the message back to the data 01999 P~e6er T. O'Brien Page 11 e~Commerce in P~rtr~ership'""
center via the Internet (27) and the application updates the status code on each related item on the customer's invoice (52) to "shipped" and stores the waybill number for online queries to the carrier's information system.
16. Product Returns In the event that the customer wants to return an item he or she has purchased for repair or for credit, she logs into the shopping portal Web site and enters her unique customer ID. She selects the option to retrieve her sales receipt, and when the application displays the appropriate Web pages, she clicks the option to "request a return authorization". On the screen, she selects the items) on her order to be returned, and she selects the option of "return for credit" or "return for repair".
There may be more than one supplier and more than one retailer involved in the return. Therefore the application will group the requests and package them in messages that are sent to the appropriate suppliers over the Internet (35). When the suppliers log onto the Web site, they are alerted that there are requests for returns to be processed, and they are required to enter return authorization codes that are passed back to the data center (36).
The Web application then composes an e-mail message for each supplier involved, containing the return authorization information, and sends these e-mail messages to the customer (37). Alternatively, the customer may log onto the Web site using her customer B7, and display the return authorizations) and print them from the Web page.
In the case of a return for repair, the customer includes a printed copy of the e-mail return authorization message in her parcel when she ships the goods back to the suppliers repair center. In the case of a return for credit she presents the printed copy of the e-mail return authorization message with her item when she takes the goods back to the retailer. In the case where there is no retailer associated with an item on her order, she includes a printed copy of the return authorization message in her parcel when she ships the goods back to the supplier's return center.
Alternative implementations of this method may be employed where the return procedures are unique to a particular supplier.
17. REPGRTING
Using a Web browser, the wholesale supplier submits selection criteria to the Web application that returns information formatted as reports, e.g. online sales month-to-date sorted by retailer region (28). The separation of one wholesale supplier's information from the next is unique to this method.
Using a Web browser, the retailer submits selection criteria to the Web application that returns information fotrnatted as reports, e.g. online sales month-to-date for his region (29).
The separation of one retailer's information from the next is unique to this method.
The customer may request information about her purchase order(s). The Web application netmns information formatted as reports, e.g. a copy of her sales receipt showing the retailer associated with each item (30). The tracking of information pertaining to each item on the customer's order, by retailer, and by fulfillment center is unique to this method.
We claim:
~ 1999 Peter T. O'B~en

Claims (2)

1. A unique business model for facilitating online purchasing by a plurality of customers, involving at least one supplier and at least one retailer that avoids the "cannibalization" of the traditional wholesaler-retailer distribution channels by remunerating a retailer for any online sales made to customers within an agreed radius of the retailer's bricks-and-mortar store, in exchange for the retailer providing pre-or after-sales support should it be required. In this application a supplier may be a wholesale distributor or a manufacturer that traditionally sells his products or services through bricks-and-mortar retail outlets. The method expands on the existing methods of purchasing goods and services via e-commerce, by offering on one Web portal, goods and services from many suppliers and manufacturers, and providing after sales service from the many retailers associated with each supplier. The model includes:
a. One or more suppliers offering their products or services in a single electronic catalogue displayed to the customer through a single "Web portal".
b. The option of having an arm's length data center providing the Web application and data transmitting services, for which fees are collected from the wholesaler and/or the retailers participating.
c. The use of the customer's postal code or zip code as a means of determining the closest participating retailers.
d. Displaying the appropriate retailer's address and other pertinent information and/or promotional images alongside a product when the customer selects the product for consideration.
e. Where non-branded products are being displayed, using a marketing technique of displaying a familiar retailer alongside the product being considered , to help sell the product to the customer.
f. Facilitating a single consumer's order for more than one item, being fulfilled from more than one fulfillment center by separating the items by fulfillment center, optimizing the shipping and handling charges applicable, and transmitting the order information to the appropriate fulfillment centers.
g. Facilitating the remuneration of the retailer(s) involved by transmitting the customer's order information to the supplier showing the remuneration due to the retailer, and making this information available online for the retailer as well.
h. Where no retailer exists within an agreed radius of the consumer, the retail markup may be retained by the supplier or shared with the independent data center providing the Web application and data transmitting services.
i. Providing shipping status information for each item on the customer's order on demand via the customer's Internet terminal, given that each item may be shipped by a different fulfillment center.
j. Facilitating customer returns, especially in the case where multiple suppliers are involved in a single customer's order.
2. The system or Web application and electronic data interchange system required to implement the business model of claim 1, comprising the following improvements over currently available e-Commerce systems:

a. A database schema that includes the necessary tables to support the business rules and data relationships between one or more suppliers, their fulfillment centers, their retail customers and the online customer or consumer.
b. A means to capture the required information for each new retailer participating in the system, including a stand alone application on a mobile computer to capture the required information off-line and then to download it to a data center online at a later time c. A means to derive a list of all valid postal codes or zip codes within a specified radius of each participating retailer and store the distance between the postal code of the retail store and each of the derived postal codes in a database table.
d. A means to obtain the customer's postal code (zip code) early in the purchase transaction session, and display a local retailer for each item viewed.
e. A means to allow the customer to buy goods or services from any number of suppliers' catalogues, and to concurrently perform searches across a single integrated catalogue in a seamless manner.
f. Using postal codes and their corresponding latitude and longitude locations, providing a means to determine the closest participating retailer to the consumer that has a relationship with the supplier of an item being considered for purchase by the customer.
g. A means to allow the customer to select an alternative retailer within a specified radius of her postal code as an alternative to the retailer selected by the application.
h. A means to display the appointed retailer's name, address, and other promotional information alongside the product information on the Web page.
i. A means to allow the customer to selectively browse a sub-set of the integrated catalogue, viewing only those items offered by a selected supplier.
j. A means to allow the customer to selectively browse a sub-set of the integrated catalogue, viewing only those items offered by one or more wholesalers that supply a selected retailer.
k. A means to allow a consumer's order for more than one item being fulfilled from more than one fulfillment center by grouping the items by fulfillment center, optimizing the shipping and handling charges applicable, and transmitting the order information to the appropriate fulfillment centers.
l. A means to derive the remuneration of one or more retailers involved in the customers purchase order, m. A means for transmitting the consumer's order information to the supplier showing the remuneration due to the retailer, and making this information available online for the retailer.
n. A means for deriving an alternative amount due to the supplier and the data center (if one exists) in the case where no retailer exists within an agreed radius of the o. A means for obtaining shipping status information from one or more fulfillment centers involved with the customer's order, and providing shipping status information for each item on the customer's order on demand via the customer's Internet terminal.
p. A means for facilitating customer returns, by obtaining one or more return authorizations from one or more suppliers involved in a single customer's order.
CA 2284409 1999-09-29 1999-09-29 Computer system and method for electronic commerce incorporating multiple wholesale supplier, multiple fulfillment centers and retailer remuneration Abandoned CA2284409A1 (en)

Priority Applications (2)

Application Number Priority Date Filing Date Title
CA 2284409 CA2284409A1 (en) 1999-09-29 1999-09-29 Computer system and method for electronic commerce incorporating multiple wholesale supplier, multiple fulfillment centers and retailer remuneration
CA 2320578 CA2320578A1 (en) 1999-09-29 2000-09-25 Computer system and method for electronic commerce incorporating multiple wholesale suppliers, an integrated product catalogue and retailer participation

Applications Claiming Priority (1)

Application Number Priority Date Filing Date Title
CA 2284409 CA2284409A1 (en) 1999-09-29 1999-09-29 Computer system and method for electronic commerce incorporating multiple wholesale supplier, multiple fulfillment centers and retailer remuneration

Publications (1)

Publication Number Publication Date
CA2284409A1 true CA2284409A1 (en) 2001-03-29

Family

ID=4164277

Family Applications (1)

Application Number Title Priority Date Filing Date
CA 2284409 Abandoned CA2284409A1 (en) 1999-09-29 1999-09-29 Computer system and method for electronic commerce incorporating multiple wholesale supplier, multiple fulfillment centers and retailer remuneration

Country Status (1)

Country Link
CA (1) CA2284409A1 (en)

Cited By (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US20180108077A1 (en) * 2001-02-07 2018-04-19 Exalt Solutions, Inc. Intelligent Multimedia E-Catalog
CN111507485A (en) * 2019-01-30 2020-08-07 上海技甲建筑智能化工程有限公司 Household appliance maintenance service management system
CN111639137A (en) * 2020-06-02 2020-09-08 广东金砖天网信息科技有限公司 Multi-platform commodity data synchronization method and system
US11127057B2 (en) 2017-12-08 2021-09-21 Exalt Solutions, Inc. Intelligent multimedia e-catalog

Cited By (7)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US20180108077A1 (en) * 2001-02-07 2018-04-19 Exalt Solutions, Inc. Intelligent Multimedia E-Catalog
US10672047B2 (en) * 2001-02-07 2020-06-02 Exalt Solutions, Inc. Intelligent multimedia e-catalog
US11127057B2 (en) 2017-12-08 2021-09-21 Exalt Solutions, Inc. Intelligent multimedia e-catalog
US11741514B2 (en) 2017-12-08 2023-08-29 Exalt Solutions, Inc. Intelligent multimedia e-catalog
CN111507485A (en) * 2019-01-30 2020-08-07 上海技甲建筑智能化工程有限公司 Household appliance maintenance service management system
CN111639137A (en) * 2020-06-02 2020-09-08 广东金砖天网信息科技有限公司 Multi-platform commodity data synchronization method and system
CN111639137B (en) * 2020-06-02 2023-08-22 药林大会品牌管理(广东)有限公司 Multi-platform commodity data synchronization method and system

Similar Documents

Publication Publication Date Title
US7797195B2 (en) Merchant-affiliated direct wholesale marketing and fulfillment system
US20020147656A1 (en) E-commerce using a catalog
US6594641B1 (en) Computer facilitated product selling system
US7127415B1 (en) Method and system for acquiring branded promotional products
US7366684B1 (en) Blind-supply open commerce business system
US20020123957A1 (en) Method and apparatus for marketing and communicating in the wine/spirits industry
US20020032668A1 (en) System and methods for enabling person to person product transfer via a communications network
US20020077973A1 (en) Method and apparatus for issuing prepaid e-cash and calling cards and method of using the same
US20050197946A1 (en) Product data file for online marketplace sales channels
WO2001033458A1 (en) System and method of aggregate electronic transactions with multiple sources
WO2001088869A1 (en) Method and system for ordering, customizing, packaging and coordinating the manufacturing and placement of advertisements on packaging
US20030050862A1 (en) Supplier/reseller interaction
WO2001071546A2 (en) Using lead-times and usage rates to determine inventory reorder points and levels
US20030050848A1 (en) Supplier/reseller interaction
US20050251410A1 (en) Price presentation in an online e-commerce system
US20040107145A1 (en) Method and system for making purchases over a computer network
WO2000043933A1 (en) System and method for on-line auctioning/buying/selling goods, services and information
AU2005100915B4 (en) Method and system for buying and selling distressed advertising
CA2284409A1 (en) Computer system and method for electronic commerce incorporating multiple wholesale supplier, multiple fulfillment centers and retailer remuneration
US20030050849A1 (en) Supplier/reseller interaction
US20050177468A1 (en) Request for quote system and method
US20030046147A1 (en) Method and system for selling a plurality of items
US8126775B1 (en) Method and system for transmittal of extended data attributes for product items, pricing and trade promotion transactions
US20030050847A1 (en) Supplier/reseller interaction
Pinto et al. Model of funcionalities for the development of B2B E-Commerce solutions

Legal Events

Date Code Title Description
FZDE Dead