WO2011085500A1

WO2011085500A1 - Method and system for electronic commerce

Info

Publication number: WO2011085500A1
Application number: PCT/CA2011/050022
Authority: WO
Inventors: Kerry Falk; Jeff L. Janzen
Original assignee: Kerry Falk; Janzen Jeff L
Priority date: 2010-01-18
Filing date: 2011-01-18
Publication date: 2011-07-21

Abstract

computer implemented method of electronic commerce between a buyer and a seller includes providing an online user interface arranged to display product listings to a buyer. A product listing representing a product for sale and including a product identification and a product price associated therewith is received from the seller through the online user interface. Subsequent to a purchase offer being received from a buyer, payment is electronically collected from the buyer corresponding to a total landed cost to deliver the product to the buyer. The payment is held in a holding account and instruction to transfer the payment to the seller is accomplished electronically and automatically subsequent to confirmation of delivery of the product to the buyer.

Description

METHOD AND SYSTEM FOR ELECTRONIC COMMERCE

This application claims priority benefits from United States provisional application Serial No. 61/295,841 , filed January 18, 2010.

FIELD OF THE INVENTION

The present invention relates to a computer implemented system and method of electronic commerce, and more particularly the present invention relates to an electronic commerce method and system which allows different sellers to commonly classify products for sale in a product database and which can electronically integrate shipping costs and brokerage fees in a computer automated transaction process.

BACKGROUND

Current services which hold funds on behalf of a party until specific conditions between a buyer and a seller are met are highly manual processes for both the end users and the companies providing the service. This is because there are several triggers that occur between the buyer, the seller and several other parties to the transaction. Typical processes which must be manually executed include the buyer and seller establishing terms including the description of the merchandise, price, payment of shipping and fees, and inputting these transaction terms into a suitable form. The seller typically must independently arrange shipping and is responsible for providing sufficient information for any customs broker where required. Due to the considerable variation between different products including size, weight, duty rates and taxes, it is difficult to effectively automate the transaction process.

SUMMARY OF THE INVENTION

According to one aspect of the invention there is provided a computer implemented method of electronic commerce between a plurality of buyers and a plurality of sellers, the method comprising: providing a product database having a plurality of product listings representing respective products to be sold and a common product classification comprising a plurality of product identifications such that all of the products associated within any one product identification are substantially identical to one another, each product listing being associated with one of the product identifications of the product database;

providing an online user interface arranged to display the product listings to the plurality of buyers and to receive product listings from different ones of the plurality of sellers having a product for sale;

receiving a product listing representing the product for sale from each of the different ones of the plurality of sellers by:

receiving through the online user interface a product identification selection from the seller corresponding to the product for sale;

associating the product identification from the common product classification with the product listing based on the product identification selection from the seller; and

associating a product price with the product listing.

The ability to commonly classify items posted from different sellers allows sufficient information to be known about the products that a computer implemented system can be automated to arrange shipping, store customs broker requirements and provide effective total landed cost comparisons between products for the buyer without any considerable manual processing being required.

The method can further includes storing in the product database a sales record of previously sold product listings associated with each product identification of the common product classification and displaying a representation of the sales record with the product identifications using the online user interface.

The following information is also stored in the product database in association with each product listing: the selling price or product price; the number of purchase offers received from previous buyers which have not yet resulted in a sale of the product; the condition of the product; the duration that listing has been posted on the database; the shipping cost; what vehicle the fisted item was purchased for; and more.

The method can also include creating a new product identification in the common product classification responsive to receiving the product identification selection from the seller if none of the product identifications already in the common product classification correspond to the product identification selection from the seller. The new product identification may be in a pending state arranged to be modified by other sellers for a prescribed period of time following the creation of the product identification.

Each product identification and/or product listing in the database may further be associated with a product brand and a unique product identifier; and shipping dimensions and a weight of the product for sale.

In some instance, the method includes the following steps:

i) receiving a purchase offer from one of the buyers offering to purchase the product for saie of one of the product listings;

ii) collecting a payment from the buyer corresponding to a total landed cost to deliver the product for sale from the seller to the buyer;

iii) holding the payment from the buyer in a holding account account;

iv) delivering the product for safe from the seller to the buyer; and v) transferring the payment from the holding account to the seller subsequent to confirmation of delivery of the product for sale to the buyer.

In other instances, the method may include the following steps: i) receiving a purchase offer from one of the buyers offering to purchase the product for sale of one of the product listings;

ii) collecting a payment from the buyer corresponding to the product for sale from the seller to the buyer;

iii) holding the payment from the buyer in a holding account; iv) electronically generating a bill of lading and arranging delivery of the product for sale from the seller to the buyer; and

v) transferring the payment from the holding account to the seller subsequent to confirmation of delivery of the product for sale to the buyer.

A commercial invoice may be electronically generated and automatically sent to a customs broker with the product identification of the product for sale after collecting the payment from the buyer.

in further instances, the method can include the following steps: i) receiving a purchase offer from one of the buyers offering to purchase the product for sale of one of the product listings;

ii) determining an estimated shipping cost from the seller to the buyer prior to collecting the payment from the buyer;

iii) collecting the payment from the buyer such that the payment corresponds to the product price together with the estimated shipping cost;

iv) holding the payment from the buyer in a holding account; v) determining an actual shipping cost of the delivery of the product for sale from the seller to the buyer subsequent to the delivery;

vi) reconciling the actual shipping cost with the seller or the buyer; and vii) transferring the payment from the holding account to the seller subsequent to confirmation of delivery of the product for sale to the buyer. In further instances, the method can include the following steps: i) receiving a shipping origin of the product from the seller with the product identification selection when receiving the product listing from each seller;

ii) receiving a destination of the product associated with each buyer;

iii) electronically determining an estimated shipping cost for each product listing to be displayed to the buyer based on the destination of the product associated with the buyer and the shipping origin of the product associated with the seller; and

iv) displaying the estimated shipping cost together with the product price for each product listing displayed to buyer subsequent to receiving the destination of the product from the buyer.

In further instances, the method can include the following steps: i) associating a country of origin of the product with each product listing from the product identification selection;

ii) receiving a destination of the product associated with each buyer;

iii) determining a duty cost based on the product identification selection, the country of origin of the product, and the destination of the product from the buyer prior to displaying the product listings of the product database to the buyer; and

iv) displaying the duty cost together with the product price for each product listing displayed to buyer.

Each product identification of the common product classification is preferably arranged to correspond to a Tariff Code according to the International Harmonized Commodity Coding and Classification System such that the Tariff Code for each product listing is determined using the product identification selection by the seller.

In further instances, the method can include the following steps: i) receiving a shipping origin of the product from the seller with the product identification selection when receiving the product listing from each seller;

ii) electronically determining an estimated shipping cost for each product listing to be displayed to the buyer based on the destination of the product associated with the buyer and the shipping origin of the product associated with the seller; and

iii) displaying the estimated shipping cost together with the duty cost, taxes and the product price for each product listing displayed to buyer.

ii) collecting a payment from the buyer corresponding to a total landed cost including the estimated shipping cost, the duty cost, taxes and the product price to deliver the product for sale from the seller to the buyer;

iii) holding the payment from the buyer in a holding account;

iv) delivering the product for sale from the seller to the buyer; and v) transferring the payment from the holding account to the seller subsequent to confirmation of delivery of the product for sale to the buyer.

A prescribed inspection period is preferably initiated responsive to delivery of the product for sale from the seller to the buyer and the payment is preferably transferred from the holding account to the seller upon confirmation of expiration of the prescribed inspection period.

ii) collecting a payment from the buyer corresponding to the product price; iii) holding the payment from the buyer in a holding account; iv) delivering the product for sale from the seller to the buyer;

v) initiating a prescribed inspection period responsive to delivery of the product for sale from the seller to the buyer;

vi) electronically initiating a resolution if a complaint is received from the buyer during the prescribed inspection period including suggesting a reduced price;

vii) transferring a portion of the payment corresponding to the product price from the holding account to the seller upon confirmation of expiration of the prescribed inspection period if no complaint is received from the buyer during the prescribed inspection period; and

viii) transferring a portion of the payment corresponding to the reduced price from the holding account to the seller upon acceptance of the reduced price by the seller and the buyer.

Preferably in response to a request for a wanted product from a buyer where no product listing of the database corresponds to the wanted product, a potential seller of the wanted product among the sellers having product listings in the product database is electronically determined, and a demand for the wanted product is indicated electronically to the potential seller. The potential seller may be determined to be one of the sellers having a product listing in the product database corresponding to a related product for sale, or alternatively a seller from which a product listing had been previously received relating to a substantially identical product.

According to a second aspect of the present invention there is provided a computer implemented method of electronic commerce between a buyer and a seller, the method comprising:

providing an online user interface arranged to display product listings to a buyer; receiving from the seller through the online user interface a product listing representing a product for sale and including a product identification and product price associated therewith;

receiving a purchase offer from the buyer offering to purchase the product for sale;

collecting a payment from the buyer corresponding to a total landed cost to deliver the product for sale from the seller to the buyer;

holding the payment from the buyer in a holding account;

delivering the product for sale from the seller to the buyer; and transferring the payment from the holding account to the seller subsequent to confirmation of delivery of the product for sale to the buyer.

In this instance an automated interface is provided between buyer and seller which permits substantially all aspects of a transaction to be effected electronically and in an automated manner.

Preferably a Bill of Lading is electronically generated and delivery of the product for sale is electronically arranged from the seller to the buyer.

In addition, a Commercial Invoice is preferably electronically generated and sent electronically to a customs broker with the product identification of the product for sale after collecting the payment from the buyer.

An estimated shipping cost from the seller to the buyer is preferably electronically determined prior to collecting the payment from the buyer. The payment can then be collected from the buyer such that the payment corresponds to the product price together with the estimated shipping cost.

An actual shipping cost of the delivery of the product for sale from the seller to the buyer can be electronically determined subsequent to the delivery such that the actual shipping cost can be electronically reconciled with the seller or the buyer.

In further instances, the method includes the following steps: i) electronically receiving a country of origin of the product with the product information from the seller;

ii) determining the Tariff Code of the product based on the product identification selection and the country of origin of the product;

iii) electronically estimating a duty cost based on the Tariff Code and the product price; and

iv) collecting the payment from the buyer such that the payment corresponds to the product price together with the duty cost.

A prescribed inspection period is preferably initiated responsive to delivery of the product for sale from the seller to the buyer such that the payment can be transferred from the holding account to the seller upon confirmation of expiration of the prescribed inspection period.

In further instances, the method includes the following steps: i) initiating a prescribed inspection period responsive to delivery of the product for sale from the seller to the buyer,

ii) electronically initiating a resolution if a complaint is received from the buyer during the prescribed inspection period including suggesting a reduced price;

iii) transferring a portion of the payment corresponding to the product price from the holding account to the seller upon confirmation of expiration of the prescribed inspection period if no complaint is received from the buyer during the prescribed inspection period; and

iv) transferring a portion of the payment corresponding to the reduced price from theholding account to the seller upon acceptance of the reduced price by the seller and the buyer.

Some embodiments of the invention will now be described in conjunction with the accompanying drawings in which:

BRIEF DESCRIPTION OF THE DRAWINGS

Figure 1 is a schematic representation of the computer implement electronic commerce system according to a preferred embodiment.

Figure 2 is a flow chart representing the computer implement electronic commerce method operation of the electronic commerce system according to one embodiment.

In the drawings like characters of reference indicate corresponding parts in the different figures.

DETAILED DESCRIPTION

Referring initially to Figure 1 , an electronic commerce system is generally indicated by reference numeral 10. The system 10 is also referred to herein as the Total Market Management System or TMMS. The system 10 or TMMS is designed to be a dynamic resource that catalogues the products of an industry, manages the exchange of those products throughout the world, and integrates multiple relevant social networks into the sales process. The TMMS will track transactions, creating a database containing information on the buying habits of a large and diverse customer base.

The system 10 comprises a computer server functioning as a web service

12 in addition to various external third party support systems to effectively allow different sellers to sell product to different buyers through a single product database classification in a fully automated manner which permits automation of all logistics including shipping, collection of funds, holding funds in a holding account, transferring funds to a seller, meeting customs requirements including generating a commercial invoice, generating a bill of lading, determining duty, taxes and currency exchange rates, and prompting the buyer and the seller where appropriate to complete the transaction. Sellers which are not familiar with international requirements are thus permitted to readily ship product while buyers are presented with greater options of comparing product for purchase from different locations by effectively comparing total landed cost as determined by the system 10 prior to making a purchasing decision.

The system 10 comprises a product database 14 which communicates with the web service 12. A database management functionality 16 in the form of software running on the server communicates and interacts with the software of the database running on the server The database 14 comprises a common product classification in a hierarchy format, of 2 to 3 levels for example, of product identifications. Each product identification comprises a class within the common product classification and typically corresponds to a particular tariff code for international shipping. Each product identification is also typically associated with a particular description of the product to be listed associated therewith which can include a brand and product number of the product as well as the material forming the product, the shipping size of the product and the weight of the product. The hierarchy is typically organized in a number of fixed higher level categories with a list of parts or products under each category corresponding to different product identifications.

A plurality of product listings are stored on the database which each correspond to a product for sale as listed by a seller. The seller typically posts the product listing together with information about the seller including the shipping origin of the product as well as various criteria required for customs including what the product is, what it is used for, the composition and the manufacturing location of the product. Various auxiliary particulars can also be associated with the product listing by the seller in addition to the product description already associated with the product identification of the classification, such as the condition of the product, the colour and the like. The user also sets a product price. The product identification of the classification system is associated with the product listing by a selection being made by the seller at the time of posting the listing on the database.

Each product identification under the database also includes associated therewith a sales record corresponding to the sales history of all product listings sold under that particular product identification of the classification system. Some or all of the sales history can be made available to the sellers and buyers upon request. A summary of the history can be displayed in the form of an average price of a prescribed number of prior sales for example. A record of the sellers which posted the product listings of previously sold product under a particular product identification can also be associated with each product identification in the database.

Typically there will be two forms of the databases used to manage the products of the industry. The first will be a review database in which users can add new products and modify descriptions for existing ones, similar to a "wiki". Modifications may include enhancing descriptions with accurate information, expanding the item's list of uses or applications, and adding product specifications.

Once a product has been modified a number of times so that inaccuracies have been weeded out, it will be reviewed by operators of the system for verification and addition into the "Confirmed" database. Once a part has been transferred to the confirmed database, further editing will be restricted to authorized personnel only. Users will be able to submit suggested changes to the confirmed database, but will not be able to directly change the content. Products in the open database will be identified differently to avoid confusion on behalf of the users. Managing the databases in this way will enable the community to develop a comprehensive database of products within the TMMS, greatly enhancing its value to the consumer.

The buyer and seller interact with the system 10 through a graphical user interface or GUI 18 in communication through the web service 12. The GUI 18 allows a log-in system to be displayed to the user. The log-in system requires each user to be registered with the site before buying or selling any items. Visitors of the site can browse listings similar to a registered user, however visitors will be prompted to register or log-in before being able to contact sellers or initiate transactions. The registration process includes billing and shipping information from every user for use by the system 0 to provide accurate pricing when displaying product listings to a user browsing the virtual market place.

A buyer initially registers by entering various correspondence information together with a destination of any product to be purchased for calculation in shipping information. The buyer is able to view various categories of the classification with typical navigation tools such that all of the product listings under selected product identifications of the classification can be viewed by the buyer together with the product price and other relevant information to determine total landed cost including duty, taxes, shipping based on location data, and periodically updated currency exchange information to be described in greater detail further herein.

The web service 12 links the GUI 18 to the product listings from the database as well as auxiliary information related to the product listings from external systems through a video and picture API (Application Programming Interface) 20. In this manner additional information about the products to be sold including video clips and photos can be linked to for viewing content from external websites by a user inquiring within the product iisting for greater information. For example images could be stored on Amazon's S3 (Simple Storage Service) and a user could copy the URL for the picture into their browser and their browser would just display the image itself. Using their API can extend to the service offered by the present invention to be able to use their storage and speed to deliver the data. The same is true for videos if linking content to other sites such as YouTube, Vimeo or some other sort of cloud content provider for example.

Each of the product listings also includes links to the appropriate sales record information to view the details of prior sales transactions related to the product identification associated with the Iisting.

A transaction between a buyer and a seller is initiated by the buyer offering to purchase the product associated with one of the product listings. The buyer may accept the product price posted with the product listing, or an alternative purchase offer can be submitted to the system which causes the system in response to query the seller associated with the product Iisting to reach a negotiated agreed product price which may differ from the product price noted in the product listing.

Buyers will browse product such as used automotive parts by selecting specific product or vehicle information utilizing a series of drop-down menus. This will allow searches for parts to be conducted in a precise and simple way, avoiding the clutter of receiving unrelated information as is found on other used parts sites.

If the user is logged into the system, the prices will be converted to their preferred currency and will show any brokerage fees, duties, and shipping costs that would be associated with their purchase. Users that are browsing as guests or are not logged in will be able to select a currency and add their postal/ZIP code to view the same features. If a user does not find the product they are looking for, there will be a service in place that they can sign up for notifying them when the part they are looking for comes up for sale. Once the part has been listed by a seller, a notification will be sent via some messaging or notification service, for example e-mail or SMS.

If the option to negotiate on price is available, the buyer can submit an offer to the seller. The seller then has a prescribed period of time (for example 48 hours) to accept, reject or propose a counter-offer. If the offer is not accepted, the buyer will be allowed to repeat the offer process up to a prescribed maximum (for example three times).

Once the decision to purchase has been made, the buyer will add their chosen product(s) to an online shopping cart.

Once the negotiations are complete, the buyer will be prompted for their payment information and the total sale price including shipping and any other fees will be charged. Fees can be charged to a credit card or any other suitable alternate forms of payment.

The seller similarly logs into the system 10 through the GUI 18 by initially registering with the system to obtain a user identification and password. Registering requires that the seller indicate the origin of the product to be sold so that the location data of the seller can be associated with each product listing posted by the seller onto the database.

The system accommodates many different users being arranged to log into the system and post respective product listings onto the database for listing under the common product classification. The process of posting a product listing in the database requires the user to perform a product identification selection in which the seller selects which product identification or class under the classification system their product for sa!e relating to the product listing is associated with. Additional material which may be part of the description associated with the product identification or which may be associated with the product listing by the seller posting the information includes the material of the product, the manufacturing location thereof and any other information relevant to shipping and customs requirements which are already listed under the product identification of the database. The seller can also include a link to an external source of information such as links to auxiliary video and picture of the product which is accessible through the video/picture API 20 as described above, or more preferably the application according to the present invention simply displays external content through the GUI as though it were hosted on the servers with the third party API's in this case acting as a proxy for data of the present invention.

If a seller posting a product listing on the database is unable to find any product identifications of the classification which correspond to the product when making a product identification selection, the seller is permitted to post a new product identification to the classification system. Accordingly, in response to receiving a product identification selection from the seller which does not correspond to any of the product classes of the classification system a new product identification is created and the seller is prompted to include any additional identifying descriptions associated with the product identification. This additional information can include any details which are consistent among any products listed under that particular product identification including a product brand, model number, tariff code, basic descriptions of the use and composition of the product, the manufacturer and the manufacturing location for example.

As described above, once a new product identification has been added to the ciassification, it remains in a pending review stage where subsequent users of the system have the option of editing the identifying description posted by the previous seller to ensure the most suitable and accurate identification description associated with each product identification under the classification system. After a prescribed number of revisions or after a prescribed period of time where no further revisions are encountered, the system can change the status of the product identification to a more fixed and confirmed status where no further changes by conventional users of the system are possible. A back end operations application which may run on a different server from the web service monitors the on-going updates to the product identifications of the classification system of the database.

The first step to listing a product on the TMMS is to determine if the product is already in the database. Sellers will be prompted to find their product in the database before creating a new entry. If the product is already in the database they will be able to review the details of the product to ensure its accuracy. If there are no changes to be made they wi!i then move on to the pictures and videos process.

If the product is not in the TMMS database, the seller will be required to add a new entry. To list a new product the user must go through the following process:

Select a Category - In the instance of car parts, categories will include broad product segments such as engine parts, wheels, and suspension components. The seller will select the category that the product best fits in that is lowest on the tree. For example, while listing a rear lower control arm the seller will need to select the Control Arm sub-category of the Suspension category.

Select the Brand - Users will be required to select the brand of the product from the database. If the brand is not already in the database the users will be prompted to add it. Select Applicable Car Models -Ail car makes and models will be included in the TMMS database. Each product must be linked to at least one car model or listed as "universal". Parts will be allowed to link to multiple car models.

Name the Product - Users will be required to add a name of the product. Along with the brand, the name will be used as the main title for the product in the search pages (i.e. Advan [Brand] RG II [Product Name]).

Add a Description - The description will include as much information as possible on the features and benefits of the product. It will be important that this description applies to all of the product variations (color, sizes, etc). For example, the user should describe attributes common to all examples of that product, as well as what the product does or improves; not the condition of the example they intend to sell.

Dimensions - For some products such as wheels and tires, available sizes will be added to the database. Weights and dimensions for products will be requested, but not mandatory. Diameter, width, and offset will be included in drop-down menus. "I Don't Know" will be an option for offset. Once the dimensions of a product have been verified as accurate, these dimensions can later be used to calculate shipping costs.

Pictures and Videos - After the product details have been entered and selected, users will be prompted to upload pictures and videos of the product from their computers. These will be associated to their listing, and will be included in the database for reference material for product information. A hosted media size limit will be imposed.

Condition - Users will be requested to rate the condition of the product in a drop-down menu. The ratings would be as follows: New/Unused, Excellent, Good, Fair, Poor/Needs Work. Seller Comments - The user will be able to add an additional description of the product if they wish. This description may include more details on the condition of the product, how long it was used, and personal experiences.

Shipping Dimensions - If they are not already included in the product database, users will be required to input accurate shipping dimensions and weights. If the seller inputs the dimensions of the package incorrectly and the shipping costs end up being higher than indicated, the difference will come out of the seller's owed monies. If the shipping cost ends up being lower, the difference will be refunded to the buyer (within a certain tolerance).

Setting the Price - The final step is setting the price. If the product was already in the database and has been sold through the TMMS before, users will be able to see the average selling price for the product over the previous six months or a minimum of five transactions. They will then be required to set the price in the currency of their choice.

If the seller wishes to engage in negotiations with their prospective buyers, they will be able to mark the product with an "Or Best Offer" (OBO) designation. This will allow both parties to enter into a negotiation process. Otherwise the price will be listed as "Firm".

The product listings are typically displayed to users including the identifying descriptions of the associated product identification as well as various information relating to total landed cost for comparisons with other product listings by the buyer. To display the total landed cost, the web service 12 of the system 0 also communicates with a shipping API 22 to receive shipping information from external shipping organizations. Alternatively for purposes of an estimate, some shipping information can be maintained on an internal database. In either instance prior to a purchase offer and when simply displaying product listings to the buyer, for each listing displayed the system determines an estimate of the shipping cost based on the product origin and product destination information provided by the seller and buyer respectively when registering or logging into the system. The determination of the shipping cost is also based on the characteristics of the product for sale obtained from the product identification of the classification system including the shipping weight and size for example.

The system can also communicate with a customs broker EDI (electronic data interchange) 24 for purposes of determining the duty cost and taxes applicable to the product of the product listing based on the product origin and destination information as well as a tariff code derived from the product identification. The Customs Broker then sends that information along with the shipping information to a border services agency, for example the Canadian Border Services Agency 26 for final approval for the shipment to enter the country. Prior to purchase, for the purposes of displaying the product listings, the system 10 may rely on an internal database to derive an appropriate estimate of the duty, cost and taxes. Accordingly, the system is arranged to display all of the product listings together with a total landed cost including duty cost, taxes, shipping cost, and currency exchange. The currency exchange can be kept up-to-date through the accounting software 26 of the system. This can also be done through a currency exchange API.

When a buyer initiates a purchase, the buyer initially submits a purchase offer to the system which causes the system to automatically contact the seller associated with the product listing regarding the offer. Where the buyer agrees to the posted product price, the system automatically initiates the collection of a payment from the buyer corresponding to the product price together with the total landed cost including duty, shipping and taxes. In some embodiments, payment can be collected through a Pay Pal API 28 which also communicates with the system through the web service 12. The user thus initiates a registered account with an external payment service such as Pay Pai and makes appropriate arrangements to submit the payment to the external party which communicates the payment through the Pay Pai API to the system 10. Payment will be collected through a processing interface and process, the user could enter their credit card information and the data would be submitted to a payment processor through their APi 30 for processing and approval. The funds received are held in a holding account by the system 10.

The buyer also has the option of submitting an offer which differs from the product price posted in the listing which instead causes the system to relay the offer to the seller. Where a new agreed upon product price is reached between the buyer and the seller, the system can then initiate the same automated collection of payment noted above.

In preparation for shipping the product once receipt of payment from the buyer is confirmed, the system 10 then begins automatically and electronically arranging the logistics of the transaction between the buyer and the seller. In particular, the shipping API 22 initiates the shipping that was previously estimated by scheduling collection of the product from the seller and subsequent tracking of the product during shipment to the buyer.

The system will notify the seller of the transaction by their chosen method of messaging server, for example email and/or SMS. The seller will be required to schedule a pickup time with the shipping agent through the TMMS within two weeks of payment being made. This reduces the involvement on behalf of the seller in managing the logistics of shipping to the buyer, requiring them only to properly package the item and have it ready for pickup at the scheduled time. The seller also has the option of dropping off the properly packaged item at a shipping depot within the two week time frame. AN shipments will be tracked directly through the TMMS, in addition to the shipping agent's tracking interface on its website.

The TMMS will be able to track the package through the shipping agent's Application Programming Interface (API) and will be accessible by both the buyer and seller. Tracking updates via e-mail or SMS can be toggled off/on by the user.

For international shipments requiring a customs broker, the TMMS will automatically send the appropriate information required for EDI processing by the customs broker on behalf of the system. The TMMS will need to be able to communicate with multiple brokers in various countries depending on where the package is going. The operators of the system 0 may serve as the Importer of Record in some embodiments, or alternatively another suitable entity may serve as the Importer of Record, for example the buyer.

The system 10 also generates the appropriate bill of lading, shipping labels, and a commercial invoice for use by the shipping API and the customs broker EDI. The shipping information from the shipping API is sent by the customs broker EDI to the border services agency 26 together with the bill of lading, the commercial invoice, and the product identity which includes the identity, description with a tariff code, and all appropriate information regarding the product required by the customs broker including the value of the product, the method of shipping of the product, what the product is made of, where the product was made and any other relevant information required. Once approved by the border services agency, the clearance is returned by the customs broker EDI to the system 10 through the web service 12.

Once the product clears customs and is delivered to the buyer, the shipping API 22 confirms delivery to the system 10 together with a determination of the actual shipping cost. The accounting software 26 then reconciles the cost with the seller prior to releasing the seller's portion of the funds from the holding account to the seller. Where the shipping cost is greater than the estimated shipping cost, funds that are less than the product price agreed to are forwarded to the seller.

No funds are transferred to the seller however until the buyer accepts the condition of the product received. Typically upon receipt, a prescribed inspection period commences, for example a period of 48 hours where the buyer has an opportunity to accept the product. If no complaint is received by the end of the inspection period, then the system automatically proceeds with transfer of the seller's portion of the funds to the seller using the Pay Pal API 28 for example.

If a complaint from the buyer is received, a resolution process is initiated automatically by the system 10. A typical manner of initiating the resolution comprises a suggestion of a reduced price by the system prompted to the buyer and seller. Various additional prompts or suggestions of manners to resolve the complaint can be provided by the system to the buyer and/or the seller. Typically, two or three exchanges of communication are permitted between the buyer and the seller to attempt to resolve the conflict. Where the conflict is resolved and a new reduced price is agreed upon, the system then proceeds to forward a reduced portion of the product price to the seller.

Once delivery of the item has been confirmed by the shipping agent, an email will be sent to the buyer soliciting comments regarding their satisfaction with the transaction and the item purchased. Within 48 hours of the delivery of the item, barring any disputes, payment will be transferred from the holding account to the seller, completing the transaction.

As described above, if the buyer has a complaint regarding the product, an automated exception handling process will facilitate a resolution between both parties. They will be encouraged to communicate via the TMMS messaging system until an agreement is reached that resolves the issue. Suggestions will be provided for resolving various common issues. This may include a full or partial refund, and the TMMS will accommodate that possibility. If the two parties come to an acceptable arrangement they will each notify the system and can then proceed to the next step in the transaction process.

If the parties are not able to reach an agreement, they will be prompted to resolve the issue with a Customer Service Representative (CSR). The CSR will have the ability to refund buyers' money and restrict or ban individuals from using the TMMS.

After the transaction has been completed and the buyer reports satisfaction, payment wili be issued automatically to the seller by the TMMS in one of two ways: The seller may request to be paid through either PayPal or by Bank Wire. The TMMS will require the seller to submit their account information so that payment can be issued. Payment will be in full less seller fees charged by the operator of the system 0.

One month after the transaction is completed, the TMMS will send an email to the buyer asking for further feedback on the transaction and the item purchased. The feedback will be used as internal metrics to adjust the product and service as necessary.

Item-specific feedback will be stored and listed when that same item is listed again in the future. This will add to the value of any one listing as it will provide consumer feedback that many e-commerce retailers are able to provide, but consumer- to-consumer sites are not.

A buyer and seller feedback system permits users to be prompted to provide feedback for each other in the form of selecting either "I would do business with this person again" or "I would not do business with this person again". This system will also be tied into a detailed transaction listing system. Each rating would be tied to the transaction that prompted the feedback. Any user of the site would be able to drill down into the transaction itself to find information on response times from the seller and buyer, when payment was processed, when the item was shipped, etc.

Throughout the process the accounting software 26 records all transactions and transfers of money between the holding account and the buyers and sellers respectively. All of the transactions are further monitored by traffic analytics software 32 to track the site use and optimize use of the system 10.

Online Automotive Community Integration is provided by linking the product database to a plurality of auxiliary on-line communities by the web service 12 in which each of the auxiliary on-line communities includes its own GUI arranged to display product listings from the respective database.

The automotive enthusiast community has been an integral factor in the growth of the automotive aftermarket industry since well before the introduction of social networks such as Facebook or MySpace. These automotive communities come in the form of online forums such as http://www.beyond.ca, http://www.vwvortex.com, http://www.nasioc.com, and countless others. Each community typically centers on a specific car model (http://S2ki.com), geographic region (http://houston-imports.com), or car club (http://wpg-autox.org), and thus each site attracts its own unique group of automotive enthusiasts.

The TMMS will fully and seamlessly integrate with the classified portion of these online forums, managing all listings of automotive parts. This will allow the TMMS to link the classifieds of all forums to the system 10, effectively increasing the exposure of each listing exponentially. Users will also be able to link their login information to other forums with their profile on the system site. This will create a significant social network by connecting communities with each other. By getting involved with the social networks in this way, the system 10 will cut through the clutter of advertising from other vendors while delivering value to the end user.

The system 10 may be further capable of notifying sellers when something they might have for sale is in demand based on previous sales they have made or listings of the exact part that expired without selling. In particular, when a buyer is browsing the product listings for a particular product for sale and no such product listing of the database corresponds to the wanted product, the buyer can submit a request for the wanted product. The system automatically responds by electronically determining a potential seller of the wanted product among sellers which currently have or have previously had products listed within the product database. The system then indicates to the potential seller that there is a demand for the wanted product. The potential seller may be determined to be one of the current sellers of product on the database which have a product listing corresponding to a related product for sale. Alternatively, the potential seller may be determined to be a seller having previously posted a product listing for the substantially identical product.

The overall process performed by the system 0 when a user such as a buyer or seller engages the GUI 18 is shown in figure 2.

As shown, the user may initially browse the product listings or the index of the product database. Prior to being able to make an offer or purchase a product from a seller, the user must register or log in if registration has already occurred on a previous visit to the system. Registration requires adding various information to identify the user as well as the location of the user for determining the product origin or product destination for shipping.

A messaging system permits communication between different users through the system 10. Sellers which are logged into the system can add new listings or edit previous listings. New product identifications can be added to the index when adding a new listing to which no previous product identification within the classification corresponds. For each product listing being viewed by a user, the system calculates the relevant shipping, currency exchange and brokerage costs to display total landed cost of each product listing for each user based on the product identity and the relevant buyer and seller locations.

if logged in, the user has the option of purchasing or making an offer for purchase to the product of any product listing. The buyer may choose to accept the price or negotiate an alternative product price. Where an agreement is reached between the seller and buyer, payment is collected and a system initiates the shipping of the product once payment from the buyer is confirmed through the payment processor.

Upon completion of the sales transaction, the payment processor updates the product listing as being sold when payment is accepted. If there is a problem with the acceptance of the payment, additional attempts to collect payment can be initiated, however the order will be cancelled by the system after a prescribed number of attempts have resulted in no confirmed payment from the buyer.

Once a sales transaction has been initiated, the shipping API tracks the shipping and updates the system 10 with the status of the order. The buyer and the seller when logged in can check the order status. Upon receipt of the shipped product, the system determines if there is any complaint requiring the conflict resolution component of the system to be initiated. Where the order is completed without any further issues, the funds are transferred to the seller and both buyer and seller can rate the experience with the sales transaction. The buyer also has the option of reviewing the product received. The system of the present invention is advantageous over prior art computer implemented commerce systems and methods in that a service is provided which is fully automated involving debiting the buyer account, notifying the seller, holding funds in trust until delivery confirmation is received and subsequent releasing of funds to the seller. The database of the system is effective in allowing crowd-sourced merchandise information to be managed while maintaining inventory of user listed items for sale with real-time product specific market data available to users. The system 10 automates ali logistics including shipping for third party transactions which are handled in house, automated waybill generation for sellers and an automated EDI for carrier transactions. Social network integration creates a beneficial cooperation among many existing online commerce sites. Global reach capabilities of the system 10 further optimize use of the system by providing multi-language support for listings, currency conversion and automated EDI for customs brokerage.

As described herein, the resulting system 10 automates all of the processes involved in a transaction between a buyer and a seller. Automated steps include setting the terms of a transaction when a seller adds a listing to the system followed by reaching an agreement to terms by prompting the buyer to agree to the terms through the purchasing process and by prompting the seller to agree to the terms upon listing a product. The buyer makes payment immediately upon initiating transaction with the funds being automatically held in trust. Upon the successful transfer of funds to the system's trust account, the system notifies the buyer that the payment was successful and notifies the seller that they may proceed. The system automatically generates a waybill and shipping label for the seller to print. The system then schedules a pick up or the seller is prompted to drop the package off at the shipper's drop off location. The system records the tracking number in the database. For international shipments, the system sends the information to the customs broker through the EDI. Where tariff numbers are not available, the system updates the product database with the applicable tariff numbers to associate a tariff number with each of the product identities of the classification system. Tracking updates are automatically received via the shipping API with the updates being recorded in the database. When delivery confirmation is received from the shipping API, it is recorded in the database and an inspection period begins immediately upon receipt of the delivery confirmation. The buyer must then log into the system and accept the package as delivered or implicit acceptance occurs upon expiry inspection of the period. If there is an issue with the package during the inspection period, the buyer initiates a conflict resolution process in which they can request to have a portion of their money refunded. The seller has the choice to approve the requested refund or reject a refund. The system refunds the specified value if approved and removes that value from the total the seller is to receive. The release of funds occurs automatically by transferring the funds to the seller's Pay Pal or bank account.

Because the system is dealing with multiple currencies in different bank accounts and the transfer of funds occurs automatically, the system has algorithms which decide which account to transfer funds out of so that the system takes advantage of the currency exchange. Similar algorithms will be developed to increase the accuracy of the system's recommendation engine and marketing engine. The marketing engine is responsible for determining potential sellers of products in demand for example.

The system 10 differs from the prior art in that it is the first system to fully automate the entire transaction process including collection of funds from a buyer, handling the logistics, and then transfer of funds to the seller. Assuming the buyer does not take issue with the product received after they have made payment to the system, they do not have to interact with the system again. The seller similarly does not have to interact with the system again once they have shipped the product using instructions provided by the system 10 and can simply wait for the funds to be transferred into their account.

Since various modifications can be made in my invention as herein above described, and many apparently widely different embodiments of same made within the spirit and scope of the claims without department from such spirit and scope, it is intended that all matter contained in the accompanying specification shall be interpreted as illustrative only and not in a limiting sense.

Claims

CLAIMS:

1. A computer implemented method of electronic commerce between a plurality of buyers and a plurality of sellers, the method comprising:

providing a product database having a plurality of product listings representing respective products to be sold and a common product classification comprising a plurality of product identifications such that all of the products associated within any one product identification are substantially identical to one another, each product listing being associated with one of the product identifications of the product database;

associating a product price with the product listing.

2. The method according to Claim 1 including storing in the product database a sales record of previously sold product listings associated with each product identification of the common product classification and displaying a representation of the sales record with the product identifications using the online user interface.

3. The method according to either one of Claims 1 or 2 including creating a new product identification in the common product classification responsive to the seller determining that none of the product identifications already in the common product classification correspond to the product identification selection from the seller.

4. The method according to Claim 3 including maintaining the new product identification in a pending state arranged to be modified by other sellers for a prescribed period of time following the creation of the product identification.

5. The method according to any one of Claims 1 through 4 including associating each product identification with a product brand and a unique product identifier.

6. The method according to any one of Claims 1 through 5 including associating each product listing in the database with shipping dimensions and a weight of the product for sale.

7. The method according to any one of Claims 1 through 6 including associating each product identification in the database with shipping dimensions and a weight of the product for sale.

8. The method according to any one of Claims 1 through 7 including: receiving a purchase offer from one of the buyers offering to purchase the product for sale of one of the product listings;

holding the payment from the buyer in a holding account;

9. The method according to any one of Claims 1 through 8 including: receiving a purchase offer from one of the buyers offering to purchase the product for sale of one of the product listings;

collecting a payment from the buyer corresponding to the product for sale from the selier to the buyer;

holding the payment from the buyer in a holding account;

electronically generating a bill of lading and arranging delivery of the product for sale from the seller to the buyer; and

transferring the payment from the holding account to the seller subsequent to confirmation of delivery of the product for sale to the buyer.

10. The method according to Claim 9 including electronically generating a commercial invoice and sending the commercial invoice to a customs broker with the product identification of the product for sale after collecting the payment from the buyer.

11. The method according to any one of Claims 1 through 10 including: receiving a purchase offer from one of the buyers offering to purchase the product for sale of one of the product listings;

determining an estimated shipping cost from the selier to the buyer prior to collecting the payment from the buyer;

collecting the payment from the buyer such that the payment corresponds to the product price together with the estimated shipping cost;

holding the payment from the buyer in a holding account;

determining an actual shipping cost of the delivery of the product for sale from the seller to the buyer subsequent to the delivery;

reconciling the actual shipping cost with the seller or the buyer; and transferring the payment from the holding account to the seller subsequent to confirmation of delivery of the product for sale to the buyer.

12. The method according to any one of Claims 1 through 11 including: receiving a shipping origin of the product from the seller with the product identification selection when receiving the product listing from each seller;

receiving a destination of the product associated with each buyer;

electronically determining an estimated shipping cost for each product listing to be displayed to the buyer based on the destination of the product associated with the buyer and the shipping origin of the product associated with the seller; and

displaying the estimated shipping cost together with the product price for each product listing displayed to buyer subsequent to receiving the destination of the product from the buyer.

13. The method according to any one of Claims 1 through 12 including: associating a country of origin of the product with each product listing from the product identification selection;

receiving a destination of the product associated with each buyer;

determining a duty cost based on the product identification selection, the country of origin of the product, and the destination of the product from the buyer prior to displaying the product listings of the product database to the buyer; and

displaying the duty cost together with the product price for each product listing displayed to buyer.

14. The method according to Claim 13 including arranging each product identification of the common product classification to correspond to a Tariff Code according to the International Harmonized Commodity Coding and Classification System and determining the Tariff Code for each product listing using the product identification selection by the seller.

15. The method according to either one of Claims 13 or 14 including: receiving a shipping origin of the product from the seller with the product identification selection when receiving the product listing from each seller;

eiectronicaily determining an estimated shipping cost for each product listing to be displayed to the buyer based on the destination of the product associated with the buyer and the shipping origin of the product associated with the seller; and

displaying the estimated shipping cost together with the duty cost, taxes and the product price for each product listing displayed to buyer.

16. The method according to Claim 15 including

receiving a purchase offer from one of the buyers offering to purchase the product for sale of one of the product listings;

collecting a payment from the buyer corresponding to a total landed cost including the estimated shipping cost, the duty cost, taxes and the product price to deliver the product for sale from the seller to the buyer;

holding the payment from the buyer in a holding account;

delivering the product for saie from the seller to the buyer; and transferring the payment from the holding account to the seller subsequent to confirmation of delivery of the product for sale to the buyer.

17. The method according to Claim 16 including initiating a prescribed inspection period responsive to delivery of the product for sale from the seller to the buyer and transferring the payment from the holding account to the seller upon confirmation of expiration of the prescribed inspection period.

18. The method according to any one of Claims 1 through 17 including: receiving a purchase offer from one of the buyers offering to purchase the product for sale of one of the product listings;

collecting a payment from the buyer corresponding to the product price; holding the payment from the buyer in a holding account;

delivering the product for sale from the seller to the buyer;

initiating a prescribed inspection period responsive to delivery of the product for sale from the seller to the buyer;

electronically initiating a resolution if a complaint is received from the buyer during the prescribed inspection period including suggesting a reduced price;

transferring a portion of the payment corresponding to the product price from the holding account to the seller upon confirmation of expiration of the prescribed inspection period if no complaint is received from the buyer during the prescribed inspection period; and

transferring a portion of the payment corresponding to the reduced price from the hoiding account to the seller upon acceptance of the reduced price by the seller and the buyer.

19. The method according to any one of Claims 1 through 18 including, responsive to a request for a wanted product from a buyer where no product listing of the database corresponds to the wanted product, electronically determining a potential seller of the wanted product among the sellers having product listings in the product database, and indicating a demand for the wanted product to the potential seller.

20. The method according to Claim 19 wherein the potential seller is determined to be one of the sellers having a product listing in the product database corresponding to a related product for sale.

21. The method according to either one of Claims 19 or 20 wherein the potential seller is determined to be a seller from which a product listing had been previously received relating to a substantially identical product.

22. A computer implemented method of electronic commerce between a buyer and a seller, the method comprising:

providing an online user interface arranged to display product listings to a buyer;

receiving from the seller through the online user interface a product listing representing a product for sale and including a product identification and a product price associated therewith;

holding the payment from the buyer in a holding account;

23. The method according to Claim 22 including electronically generating a Bill of Lading and electronically arranging delivery of the product for sale from the seller to the buyer.

24. The method according to either one of Claims 22 or 23 including electronically generating a Commercial Invoice and electronically sending the commercial invoice to a customs broker with the product identification of the product for sale after collecting the payment from the buyer.

25. The method according to any one of Claims 22 through 24 including electronically determining an estimated shipping cost from the seller to the buyer prior to collecting the payment from the buyer and collecting the payment from the buyer such that the payment corresponds to the product price together with the estimated shipping cost.

26. The method according to Claim 25 including electronically determining an actual shipping cost of the delivery of the product for sale from the seller to the buyer subsequent to the delivery and electronically reconciling the actual shipping cost with the seller or the buyer.

27. The method according to any one of Claims 22 through 26 including: electronically receiving a country of origin of the product with the product information from the seller;

determining the Tariff Code of the product based on the product identification selection and the country of origin of the product;

electronically estimating a duty cost based on the Tariff Code and the product price; and

collecting the payment from the buyer such that the payment corresponds to the product price together with the duty cost.

28. The method according to any one of Claims 22 through 27 including initiating a prescribed inspection period responsive to delivery of the product for sale from the seller to the buyer and transferring the payment from the holding account to the seller upon confirmation of expiration of the prescribed inspection period.

29. The method according to any one of Claims 22 through 28 including: initiating a prescribed inspection period responsive to delivery of the product for sale from the seller to the buyer,

transferring a portion of the payment corresponding to the reduced price from the holding account to the seller upon acceptance of the reduced price by the seller and the buyer.