WO2015156685A1

WO2015156685A1 - Method and system for online transactions

Info

Publication number: WO2015156685A1
Application number: PCT/NZ2015/000023
Authority: WO
Inventors: Charles Quenton HAYWARD; Karyn Marcia HAYWARD
Original assignee: Hayward Charles Quenton; Hayward Karyn Marcia
Priority date: 2014-04-08
Filing date: 2015-04-08
Publication date: 2015-10-15
Also published as: AU2023201622A1; NZ623605A; AU2021200335A1; AU2015244501A1

Abstract

A method and system are provided for initiating an online auction for selling an item. The method includes receiving a request from a potential buyer to initiate a descending auction of an item, and initiating an online descending auction of the item on processing the request.

Description

METHOD AND SYSTEM FOR ONLINE TRANSACTIONS

TECHNICAL FIELD

The present invention relates to a method and system for online transactions - more particularly an online auction system.

BACKGROUND ART

With growing accessibility to the internet and familiarity with its use, online auctioning systems have become increasingly popular as a means for the purchase and sale of goods and services. However, while popular there remain aspects which may be improved on.

In particular, with existing online auction systems the party selling the item is given control over when the auction will be initiated and completed. This places restrictions on a potential purchaser, who may need or simply want to purchase the item prior to the set date for the completion of the auction, or for whom the completion time may be inconvenient. Some online auction systems include the ability to purchase the item outright for a set fee - but this option circumnavigates the auction process as opposed to completing it. This precludes other potential buyers from engaging, and thereby actively competing, in the auction process.

It is an object of the present invention to address the foregoing problems or at least to provide the public with a useful choice. All references, including any patents or patent applications cited in this specification are hereby incorporated by reference. No admission is made that any reference constitutes prior art. The discussion of the references states what their authors assert, and the applicants reserve the right to challenge the accuracy and pertinency of the cited documents. It will be clearly understood that, although a number of prior art publications are referred to herein, this reference does not constitute an admission that any of these documents form part of the common general knowledge in the art, in New Zealand or in any other country.

Throughout this specification, the word "comprise", or variations thereof such as "comprises" or "comprising", will be understood to imply the inclusion of a stated element, integer or step, or group of elements integers or steps, but not the exclusion of any other element, integer or step, or group of elements, integers or steps.

Further aspects and advantages of the present invention will become apparent from the ensuing description which is given by way of example only. SUMMARY OF THE INVENTION

According to one aspect of the present invention there is provided a computer-implemented method for initiating an online auction for selling an item, including the steps of: receiving a request from a potential buyer to initiate a descending auction of an item; initiating an online descending auction of the item on processing the request.

According to one aspect of the present invention there is provided a computer-implemented method for initiating an online auction for selling an item, including the steps of: receiving, at one or more processors, a request from a potential buyer of an item selected from a plurality of items stored in an inventory record to initiate an online descending auction of the item; and initiating on processing the request, using the processor, an online descending auction of the item in which the potential buyer may participate by placing a bid.

According to another aspect of the present invention there is provided a system, including: at least one processor; and a computer-readable medium having computer program instructions recorded therein, which when executed by the at least one processor cause the at least one processor to perform the step of: initiating a descending auction of an item on processing a request received from a potential buyer to initiate the descending auction of the item.

According to another aspect of the present invention there is provided a system, including: at least one processor; and a computer-readable medium having computer program instructions recorded therein, which when executed by the at least one processor cause the at least one processor to perform the step of: on processing a request received from a potential buyer of the item to initiate a descending auction of an item selected from a plurality of items stored in an inventory record, initiating the descending auction of the item in which the potential buyer may participate by placing a bid. According to one aspect of the present invention there is provided a computer software product including a computer-readable medium having computer program instructions recorded therein, which when executed by one or more processors cause the one or more processors to perform the step of: initiating a descending auction of an item on processing a request received from a potential buyer to initiate the descending auction of the item.

According to one aspect of the present invention there is provided a computer software product including a computer-readable medium having computer program instructions recorded therein, which when executed by one or more processors cause the one or more processors to perform the step of: on processing a request received from a potential buyer of the item to initiate a descending auction of an item selected from a plurality of items stored in an inventory record, initiating the descending auction of the item in which the potential buyer may participate by placing a bid.

Reference to an item should be understood to mean one or more units of a product or service. It is envisaged that the present invention may have particular application to the selling of vehicles - however it should be appreciated that this is not intended to be limiting. Items may be represented by any suitable means known in the art - for example, as a listing on an online auction website representing a data entry stored on servers operated by the entity managing the auction process (an "auction server"). As known in the art, such listings may be represented on dedicated webpages, or as one of many. Reference to a descending auction should be understood to mean a process of selling and buying items by offering them up for bid by potential buyers, whereby an initial offering price is set, and subsequently reduced over time until a winning bid is submitted or a set reserve is reached.

Descending auctions prevent the possibility of 'shilP or 'ghost' bids being placed to artificially inflate the selling price - the first bid placed wins the auction. The inventors also consider that a descending auction in an online setting provides greater clarity for potential buyers - both in terms of as to whether a bid has been successful (in a descending auction the buyer is notified of having won the auction at the time of placing the bid), and also avoiding the possibility of a potential buyer mistakenly or accidentally increasing their own bid. The inventors consider descending auctions to be more suited to initiation on the request of potential buyers than traditional (i.e. increasing) auctions. For example, descending auctions may be given a set end time without the extensions commonly seen in traditional auctions to accommodate for closely contested cases. A descending auction therefore allows the process to be conducted within a defined and potentially short time period in the interests of convenience to a potential buyer, while still providing the opportunity for the auction to be contested to the benefit of the seller.

The request may be initiated by any suitable means known in the art. For example, an item listing may include a selectable element such as an icon or virtual button, which may be selected by a user to request initiation of a descending auction for the associated item. In another example, the request may take the form of an electronic message identifying the item, transmitted to the auction server.

In an exemplary embodiment, the potential buyer may be required to be preauthorised prior to the descending auction being initiated. In doing so, the likelihood of frivolous requests to initiate auctions may be reduced.

Preauthorisation may include confirming the ability of the potential buyer to pay at least a deposit in the event they win the auction. For example, preauthorisation may include querying a payment gateway (for example, Direct Payment Solutions™ or PayPal™) for confirmation that a potential buyer's account with a financial institution can supply a predetermined amount. In another embodiment, a user account with the auction system may need to be credited with the amount required in order to qualify for preauthorisation.

It is envisaged that preauthorised status may be maintained until a winning bid is made by the potential buyer, or a predetermined period of time has passed. For example, the predetermined period may be controlled by the financial institution facilitating payment of the deposit. Further, it is envisaged that certain potential buyers may be designated as being permanently preauthorised by the system - for example regular users who have been authenticated through credit checks, or payment history.

In an exemplary embodiment, a notification of initiation of the descending auction may be issued to parties with registered interest in the item. Examples of such parties may include potential buyers who have added the item to their watchlist, or those who have or are undertaking pre-authorisation in relation to that item. In an exemplary embodiment, potential buyers may register interest in the form of pre-registering a bid with the system prior to initiation of the descending auction.

The notifications may take any suitable form known in the art, but are envisaged as being electronic messages, such as email or SMS messages. The notifications may include, for example, details identifying the item and the intended time of initiation of the descending auction.

Such notifications may include information as to whether a potential buyer is currently preauthorised. If the potential buyer is not preauthorised, the notification may provide a link to the location within the online system by which the potential buyer may become preauthorised.

In an exemplary embodiment, the descending auction is initiated after a set period of time. The timer may be started on receiving the request, or once preauthorisation for the requesting potential buyer is confirmed - to ensure that there is at least one eligible potential buyer. It is envisaged that this may provide parties with a registered interest with the opportunity to access the auction system and participate in the auction.

Once the descending auction is initiated, the current auction price and an indication of time remaining in the auction may be displayed in a user interface - for example, a webpage within a browser of the potential buyer. It is envisaged that the interface may include a non-textual progress indicator in place of, or in addition to, a countdown timer indicating the remaining time in the auction.

The amount by which the price is decremented at each stage may be determined in a variety of ways. For example, the decrements may be calculated by subtracting the reserve price from the starting price, and dividing the result by the desired number of decrements through the course of the auction. In other embodiments, the decrements may be scaled, or at least one decrement may be randomised within a predefined range of values. It should be appreciated that the values may be rounded to any suitable denominator.

Similarly, the time intervals between decrements may be equal, scaled, or randomised. It is envisaged that the auction may be conducted over a time period of less that substantially five minutes, and more particularly for a period of substantially two minutes. In doing so, the convenience of being able to request initiation of an auction is not diluted by a long auction period - potentially with an inconvenient completion time.

In embodiments in which pre-registered bids are permitted, the first placed bid takes precedent in the event of multiple pre-registered bids of the same amount being made.

The party placing the winning bid may be notified with details of requirements to complete the transaction. The system may also take the deposit established during the preauthorisation process to secure the item. In the event that the reserve is reached without a winning bid, further notification messages may be sent to interested parties in order to inform them that the item remains available. Similarly, interested parties may be notified in the event that a winning bid is registered,

Further, where the reserve is reached without the system receiving a bid, the reserve may be re-calculated before re-listing the item. This may be useful in discouraging potential buyers from requesting that auctions be initiated simply in order to discover the reserve where the reserve is not shown with the listing.

In an exemplary embodiment, potential buyers may be provided with the option to purchase information as to the reserve prior to, or during, the auction. This may reduce the instances of auctions being initiated with only the intention of discovering the reserve, while still providing some financial return.

In embodiments, the system may include an analytics module configured to perform analysis on data associated with auctions for items managed by the system. In an exemplary embodiment, item listings have a variety of information categories populated with information regarding the item. For example, where the item is a vehicle the information categories may include: make, model, year, engine, transmission, fuel type, odometer, fuel economy, and various other accessory categories.

It may be useful to analyse aspects of auctions (for example: sale price, rate of reserve failures, length of time before a request to initiate an auction was placed) in order to identify trends for the purpose of restocking items, determining starting prices and reserves, and so on.

For a firmware and/or software (also known as a computer program) implementation, the techniques of the present invention may be implemented as instructions (for example, procedures, functions, and so on) that perform the functions described. It should be appreciated that the present invention is not described with reference to any particular programming languages, and that a variety of programming languages could be used to implement the present invention. The firmware and/or software codes may be stored in a memory, or embodied in any other processor readable medium, and executed by a processor or processors. The memory may be implemented within the processor or external to the processor.

A general purpose processor may be a microprocessor, but in the alternative, the processor may be any processor, controller, microcontroller, or state machine. A processor may also be implemented as a combination of computing devices, for example, a combination of a digital signal processor (DSP) and a microprocessor, a plurality of microprocessors, one or more microprocessors in conjunction with a DSP core, or any other such configuration. The processors may function in conjunction with servers - both virtual and physical - and network connections as known in the art.

The steps of a method, process, or algorithm described in connection with the present invention may be embodied directly in hardware, in a software module executed by a processor, or in a combination of the two. The various steps or acts in a method or process may be performed in the order shown, or may be performed in another order. Additionally, one or more process or method steps may be omitted or one or more process or method steps may be added to the methods and processes. An additional step, block, or action may be added in the beginning, end, or intervening existing elements of the methods and processes.

BRIEF DESCRIPTION OF DRAWINGS

Further aspects of the present invention will become apparent from the following description which is given by way of example only and with reference to the accompanying drawings in which: FIG. 1 is a diagram illustrating an exemplary environment in which embodiments of the present invention may be implemented;

FIG. 2 is a diagram illustrating an exemplary auction system according to embodiments of the present invention;

FIG. 3 illustrates an exemplary webpage in accordance with embodiments of the present invention;

FIG. 4 is a flow diagram for an exemplary method for pre-authorising potential buyers according to embodiments of the present invention;

FIG. 5 is a flow diagram for an exemplary method for initiating an online auction according to embodiments of the present invention; FIG. 6 is a flow diagram for an exemplary method for conducting an online descending auction according to embodiments of the present invention, and

FIG. 7 illustrates a section of an exemplary webpage in accordance with embodiments of the present invention.

DETAILED DESCRIPTION

FIG. 1 illustrates a computer network environment 100 in which embodiments of the present invention may be implemented. A network 101 is provided, through which various communication links between devices within the environment 100. While the network 101 is illustrated as a single component, it should be appreciated that it may be composed of a number of sub-networks, potentially operating using distinct technologies - e.g. wired or wireless, fibre optic or radio.

An auction system 102 is provided, including one or more servers 103 and storage units 104. By way of example, the servers 103 could be web servers, application servers, database servers, or any other suitable type of server known in the art.

Administrative user device 105 and potential buyer user devices 106 may communicate with the auction system 102 via the network 101. Such user devices 105 and 106 may include a desktop computer, laptop computer, handheld computer, and/or any other type of logic- containing device.

FIG. 2 illustrates an exemplary auction system 200, which may operate as auction system 102 in the environment 100 illustrated in FIG. 1. The system 200 includes a processing unit 201 suitable for storing and/or executing program code coupled directly or indirectly to memory elements 202 (for example, through a bus system - not illustrated).

The memory elements 202 may include local memory or system memory, and storage means such as drives and associated computer-readable media to provide non-volatile storage of computer-executable instructions, data structures, program modules and other data for the system 200. Software applications may be stored on the storage means as well as the system memory.

The memory elements 202 have been illustrated in the form of program modules 203, including:

• auction management unit 204 for establishing and managing online auctions.

• user management unit 205 for facilitating the creation and management of potential buyer accounts, and various conditions such as pre-authorisation. User management unit 205 may access and store data in user database 206;

• inventory management unit 207 for establishing and maintaining details of items for auction using the system 200. User management unit 205 may access and store data in item database 208; and · accounting management unit 209 for managing user account balances, payments, invoicing, and other financial matters.

FIG. 3 illustrates an exemplary webpage 300 of an auction website maintained by the system 200, advertising the availability of an item for auction. In this exemplary embodiment the item may be referred to as being a vehicle, although it should be appreciated that this is for illustrative purposes and not intended to be limiting

The webpage 300 includes an item display section 301 , populated with data by the inventory management unit 207. A brief description or title 302 may be provided, for example: "Audi Q7 TDI Quattro 2006", together with images 303, item details across categories - such as: make, model, year, engine, transmission, fuel type, odometer, fuel economy - and any desired supplementary description 305 which does not fit within the item details 304.

As known in existing online auction sites, a user may be provided with the option to add the item to a watchlist - for example using selectable watchlist button 306. The user may be able to access details of their account, including their watchlist, from a homepage as known in the art.

The webpage 300 also includes the option for a potential buyer to pre-register a bid for the item before an auction has been initiated, by selecting "Prebid" button 307. If the potential buyer has been pre-authorised to bid on an auction, they will be provided with options for entering or selecting the amount of their proposed bid - whether in a menu displayed at webpage 300, or in a new page.

If the potential buyer has not been pre-authorised, they will need to do so. An exemplary method 400 for pre-authorising potential buyers is illustrated in FIG. 4 - and may be described with reference to integers of FIG. 2. In step 401 , the request for pre-authorisation is received by the accounting management unit 209. The accounting management unit 209 checks whether the potential buyer has been previously pre-authorised with user management unit 205 in step 402.

If so, the potential buyer is queried in step 403 as to whether they wish to use previously submitted financial account details to complete the current pre-authorisation process. If they confirm to the affirmative, the accounting management unit 209 proceeds to check payment capabilities with a payment gateway.

If the potential user has not been previously pre-authorised, or indicates in step 403 that they wish to enter new details, they are presented with a form (not illustrated, but well known in the art) for entry of financial account details from which payment will be made. Once completed, the method proceeds to step 404.

In step 406, the accounting management unit 209 receives confirmation of capability to make the required payment, or not. If not, the potential buyer may be re-directed to step 405 to enter alternative payment details. If payment capability is affirmed, the accounting management unit 209 may notify the user management unit 205 to update the potential buyer's pre-authorisation status, and issue a message to the potential buyer confirming same. Updating of the pre- authorisation status with the user management unit 205 may reset an expiry period - for example of 72 hours - for the pre-authorisation.

Returning to FIG. 3, the webpage 300 includes an auction section 308. The auction section 308 displays a timing indication 309 of when the next scheduled auction for that item is due to start. Potential buyers are also presented a request auction button 310 by which they may request initiation of the auction prior to the scheduled time.

FIG. 5 illustrates a method 500 of initiating an online auction using system 200. The method includes the step 501 of receiving, at auction management unit 204, a request from a potential buyer to initiate an auction for an item.

In step 503 the auction management unit 204 checks with the user management unit 205 as to whether the potential buyer has been pre-authorised to bid on the item. If not, in step 503 the potential buyer is directed to complete the pre-authorisation process 400 described with reference to FIG. 4. If pre-authorised, the auction management unit 204 issues notifications to interested parties (for example, potential buyers with pre-registered bids, or who have selected the item for their watchlist) that the auction is to take place. The notifications may, for example, take the form of electronic messages such as e-mail and/or SMS messages identifying the item and indicating the intention to begin a descending auction for that item. In step 505, the auction management unit 204 begins a countdown timer, for example of ten minutes, for initiation of the auction. This time provides potential buyers the opportunity to access the auction system, and complete pre-authorisation if required.

FIG. 6 illustrates a method 600 for conducting an online descending auction using system 200. In step 601 , the auction management unit 204 determines that the auction is due to start, and initiates the auction.

In doing so, the auction section 308 of webpage 300 shown in FIG. 3 may be replaced with active auction section 700 illustrated by FIG. 7. The active auction section 700 includes a numerical countdown timer 701 showing the remaining time in the auction, together with progress indicator 702. The current price of the item is shown in price indicator 703, and potential buyers are provided with a selectable bidding button 704 for lodging a bid at the indicated price.

In step 602, the auction management unit 204 displays the starting price. If the auction management unit 204 determines that a pre-registered bid meets the current price in step 603, the auction is closed. The party placing the winning bid is notified with details of requirements to complete the transaction in step 604, and accounting management unit 209 takes the pre- authorised deposit.

If no pre-registered bid for that price has been reached, the auction management unit 204 checks to see if a live bid has been placed in step 605. If so, the auction is closed, and the process continues to step 604. If not, the auction management unit 204 determines whether the time interval (for example, five seconds) for the current price has elapsed in step 606, and continues checking for a live bid in step 605 until it has. Once the time interval for that price has been reached, the auction management unit 204 checks whether the total time allocated (for example, 2 minutes) has been reached. If not, the auction management unit 204 applies a decrement to the previous price, and returns to step 602.

The amount by which the price is decremented at each stage may be determined in a variety of ways - but in an exemplary embodiment decrements are calculated by subtracting the reserve price from the starting price, and dividing the result by the desired number of decrements through the course of the auction. For example, where the starting price is $4000, the reserve is $2000, the total length of the auction is two minutes, and the number of desired decrements is twenty-four - the price will be decreased by $83.33 (rounded to the nearest $5), or to the reserve in the case the theoretical final decrement takes the price below the reserve.

If the total time allocated to the auction has been reached in step 607, the auction is closed and notification messages sent in step 604 to interested parties in order to inform them that the item remains available.

The entire disclosures of all applications, patents and publications cited above and below, if any, are herein incorporated by reference.

Reference to any prior art in this specification is not, and should not be taken as, an acknowledgement or any form of suggestion that that prior art forms part of the common general knowledge in the field of endeavour in any country in the world.

The invention may also be said broadly to consist in the parts, elements and features referred to or indicated in the specification of the application, individually or collectively, in any or all combinations of two or more of said parts, elements or features.

Where in the foregoing description reference has been made to integers or components having known equivalents thereof, those integers are herein incorporated as if individually set forth.

It should be noted that various changes and modifications to the presently preferred embodiments described herein will be apparent to those skilled in the art. Such changes and modifications may be made without departing from the spirit and scope of the invention and without diminishing its attendant advantages. It is therefore intended that such changes and modifications be included within the present invention.

Aspects of the present invention have been described by way of example only and it should be appreciated that modifications and additions may be made thereto without departing from the scope thereof as defined in the appended claims.

Claims

CLAIMS:

1. A computer-implemented method for initiating an online auction for selling an item, including the steps of: receiving, at one or more processors, a request from a potential buyer of an item selected from a plurality of items stored in an inventory record to initiate an online descending auction of the item; and initiating on processing the request, using the processor, an online descending auction of the item in which the potential buyer may participate by placing a bid.

2. A method as claimed in claim 1 , wherein processing the request includes determining whether the potential buyer is preauthorised to participate in the auction.

3. A method as claimed in claim 2, including the step of confirming the potential buyer has the ability to pay at least a deposit in the event they win the auction.

4. A method as claimed in claim 3, including taking the deposit established during preauthorisation on the potential buyer having a successful bid.

5. A method as claimed in any one of claims 2 to 4, wherein preauthorisation of the potential buyer is maintained until a winning bid is made by the potential buyer, or a predetermined period of time has passed.

6. A method as claimed in any one of claims 1 to 5, including sending a notification of initiation of the descending auction to parties with registered interest in the item.

7. A method as claimed in claim 6, wherein the notifications includes information as to whether the party with registered interest is currently preauthorised.

8. A method as claimed in any one of claims 1 to 7, wherein the descending auction is initiated after a set period of time following processing of the request.

9. A method as claimed in any one of claims 1 to 8, including conducting the descending auction by decrementing a price of the item over a pre-determined time period in the absence of a bid.

10. A method as claimed in claim 9, including concluding the auction when a bid registered prior to initiation of the auction meets the price.

11. A method as claimed in either claim 9 or claim 10, wherein the pre-determined time period is substantially two minutes.

12. A method as claimed in any one or claims y to n , including determining a new leseive for the item prior to re-listing the item for auction where a previous reserve is reached without a bid being received.

13. A system, including: at least one processor; and a computer-readable medium having computer program instructions recorded therein, which when executed by the at least one processor cause the at least one processor to perform the step of: on processing a request received from a potential buyer of the item to initiate a descending auction of an item selected from a plurality of items stored in an inventory record, initiating the descending auction of the item in which the potential buyer may participate by placing a bid.

14. A computer software product including a computer-readable medium having computer program instructions recorded therein, which when executed by one or more processors cause the one or more processors to perform the step of: on processing a request received from a potential buyer of the item to initiate a descending auction of an item selected from a plurality of items stored in an inventory record, initiating the descending auction of the item in which the potential buyer may participate by placing a bid.