Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Electronic shopping
Reexamination Certificate
1999-04-16
2003-07-15
Myhre, James W. (Department: 3622)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Electronic shopping
Reexamination Certificate
active
06594641
ABSTRACT:
BACKGROUND OF THE INVENTION
This invention relates generally to a system for routing electronic data to effect the sales of products directly from a supplier of a line of products to a customer, using a computer network, preferably the Internet, while protecting a local distributor or retailer from loss of business. This system would allow a consumer to make supplier direct purchases of products which have traditionally been available only through retailers such as specialty shops or boutiques.
Consumers typically shop for consumable items such as groceries, cleaning supplies, household goods, and the like by keeping a written or mental list of items in need and, when the list is long enough to warrant a trip, going to a retailer and purchasing, or trying to purchase, all of the items on the list. It is usually desirable to minimize trips to a store by implementing such a system and most grocery stores try to carry a wide enough variety of products so that they can accommodate most consumers' lists.
However, certain product lines are not available from grocery, department, or variety stores. Certain hair care product lines, for example, are only available through selected hair salons that choose to carry the product. The business relationship that forms between a salon and a product line is a delicate, but mutually beneficial one. The salon acts as a live, one-on-one advertiser for the product. The beautician, while styling a customer's hair, has a captive audience. The beautician tells the customer why the product is preferred over other products and actually uses the product on the customer's hair, showing the customer how well the product works while teaching the customer how to use the product properly. When the beautician is finished with the customer's hair, the product line is available for purchase only in the salon so the customer usually buys some of the product while paying for the hair care service. This form of advertising is very valuable to the product producer.
The salon also benefits from this business relationship. The salon receives the product at wholesale prices from the supplier and sells the product at retail prices, thereby earning a profit. Since the product is not available in any other retail outlets, the salon does not have to compete with either the prices offered by large stores or the convenience of adding the product to a grocery list and buying it while at the store. Unfortunately for the consumer, when he or she needs more product, a special, sometimes lengthy trip must be made to the salon simply to buy one item. Many consumers would find it desirable to find a way to avoid such trips.
It would be advantageous to be able to purchase such products directly from the supplier, using a computer network, such that the product is mailed directly to the consumer and, at the same time, the retailer's normal profit margin from the sale, or a portion thereof would be forwarded to a predetermined salon, thereby protecting the business relationship between the supplier and the salon.
SUMMARY OF THE INVENTION
Advantageously, this invention generally provides a system for marketing and selling products over a computer network.
It is another characteristic of this invention to provide a computer system for purchasing directly from a supplier such as a factory or wholesaler, products that are not typically available from such sources.
This invention is also beneficial in that it provides an automated system for forwarding to a third party, some or all of the profits the third party could expect from an original transaction if the third party had made the transaction itself.
It is another advantage that the invention generally provides an automated system for selecting which third party retailer the profits from a factory-consumer sale should be forwarded to based on a customer identifier or customer preference.
The instant invention comprises a system which allows a customer, or end product user as used herein, to purchase a product, normally available only through retailers such as boutiques or specialty stores and not generally sold in department, grocery stores, or mass merchandisers, directly from a supplier using an electronic communications path or link, preferably a computer network. Alternatively, the link could be a telephone line, coaxial cable, fiber optic cable, or any state of the art medium over which electronic data may be sent. The customer uses a remote input device such as a computer to access the network, preferably the Internet, and visits the supplier's website. If the customer does not have access to a computer, it is envisioned that the customer contact an order entry site comprising an order entry person with a computer having access to the website. The website gives the customer a choice of products from which the customer designates those desired for purchase. The customer is then directed to provide the address to which the product is to be sent and a payment method. The customer is also given the option to select a third party retailer or store from a provided list to which the predetermined profits of the sale will be sent. The customer should choose the store from which the customer would have purchased the product had this system not been used. If the customer chooses not to select a store, the store geographically closest to the provided mailing address will be chosen automatically by the computer. After the customer has provided all of the necessary information, the customer would hit a “send” button or its equivalent, on the website which would send the order information to a central processing unit. The central processing unit is linked in electronic communication flow to at least one remote output device, preferably a computer. It is envisioned that there are remote output devices located at each supply site, such as a factory, warehouse, or wholesaler, a remote output device used for billing purposes, and a remote output device used for crediting the third party retailers for the sales of the products.
The order data is received by the supplier's computer and triggers an order processing chain of events. The information is sent to a data bank such as a hard disk drive, random access memory or other magnetic or optical data storage device where the products ordered are noted for inventory and stock replacement purposes. The corresponding products are either designated as sold from a stock inventory or added to the supplier's replacement requirements. The mailing address data is sent to the shipping department of the closest supply source where the product is packaged for shipment. The supply source could be the supplier's factory or main warehouse or one of a number of distribution sources at different locations, such as regional warehouses or distributors. The accounting department receives the data in order to bill the customer and credit the designated store. The marketing department may also access the information for demographic purposes.
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Business and Industry, ‘There Are Holes in the Net’, Mar. 1, 1999, v29, n25, p34.
Duran Arthur
Moore & Hansen
Myhre James W.
Reshare Corporation
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