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Technology for Sale:

Online Business Method for Out of Stock issues    

Online Business Method that allows sellers to satisfy the demand of customers when item is out of stock or sold out.

Overview

Using this business method, a buyer who was able to purchase a good or service before it went out of stock or was sold out (Buyer #1), authorizes the seller to cede that same good or service to another buyer (Buyer #2). Without this business method, Buyer #2 is otherwise unable to purchase that same good or service directly from the seller’s inventory because it is out of stock or sold out. Buyer #1 charges Buyer #2 a fee for ceding his/her good or service. In addition, since the ceding transaction is processed by the seller’s computer-driven network, the seller also charges a fee to Buyer #2 for facilitating the cession of the good or service.

The Problem Solved by the Technology

Sellers face a common problem when buyers are not able to purchase a specific good or service from them because it is out of stock or sold out. This problem negatively affects both parties as explained below:

From the buyer’s perspective: when buyers are unable to purchase the specific good or service that they are looking for because it is out of stock or sold out, it results in a negative reaction on their part. In the case of physical goods, this is particularly true when buyers are not willing (or able) to wait for a possible inventory replenishment and/or are not willing to consider purchasing a substitute good or service to satisfy their demand. In those cases, buyers either purchase the good or service from another seller or do not purchase it at all. Even if buyers are willing to substitute the specific good or service for another one, the seller normally loses an additional portion of the potential sale because buyers tend to switch to a less expensive substitute. In any case, and from any perspective, it is a problem.

From the seller’s perspective: this problem tends to result on loss of profits and loss of loyal customers.

How the Technology Solves the Problem

The present invention relates to a computer-driven automated business method. The mission objective of this business method is to enable a seller to satisfy the demand of a buyer who wants to purchase a good or service that is out of stock or sold out. This business objective is achieved through a series of automated steps that take place on the seller’s computer network.

Using this business method, a buyer who was able to purchase a good or service before it went out of stock or was sold out (Buyer #1), authorizes the seller to cede that same good or service to another buyer (Buyer #2). Without this business method, Buyer #2 is otherwise unable to purchase that same good or service directly from the seller’s inventory because it is out of stock or sold out. Buyer #1 charges Buyer #2 a fee for ceding his/her good or service. In addition, since the ceding transaction is processed by the seller’s computer-driven network, the seller also charges a fee to Buyer #2 for facilitating the cession of the good or service.

The application of this business method provides tangible and beneficial results to buyers and sellers who face the frequent problem of goods or services being out of stock or sold out; it does so by providing a technologically unique, valuable and efficient method for buyers to interact amongst themselves and with the seller relative to this problem.

This business method is “horizontal”, meaning that it is applicable to many industries. It is also “persistent,” meaning that it has a value that will endure and not fade away with time.

What are the useful, concrete and tangible results that this business method produces for the parties involved?

For the Seller
- It enables the seller to re-target an unsatisfied buyer (Buyer #2) and fulfill his demand. This provides the seller a competitive advantage in the marketplace.
- It transforms a regular sale (sale to Buyer #1) into a sale that has an additional revenue component (sale to Buyer #2). The resulting sale (sale to Buyer #2) not only includes the revenue of the original transaction (sale to Buyer #1), but it also includes the fee that Buyer #2 is paying the seller for facilitating the cession of the good or service. In other words, this business method helps the seller generate additional revenue by reallocating a purchase of a good or service from one buyer to another.

For the Original Buyer (Buyer #1)
- This business method transforms what was originally an expense (the cost of the initial purchase) into revenue (the fee paid by Buyer #2 for the cession of the good or service).

For the Secondary Buyer (Buyer #2)
- It transforms a non-existing supply of a good or service into an available supply. It allows the buyer to purchase a good or service that is currently out of stock or sold out by paying not only the regular cost of the good or service, but also by paying (1) a fee to Buyer # 1 for ceding the out of stock/sold out good or service and (2) a fee to the seller for facilitating the cession of the good or service from Buyer #1 to Buyer #2. This business method gives the buyer the ability to rapidly acquire a good or service that is otherwise unavailable either in the near future (out of stock) or forever (sold out).

Primary Application of the Technology

1. Online retailers.
2. Business to Business (B2B) transactions (such as between a manufacturer and a wholesaler or between a wholesaler and a retailer).
3. Online travel services (plane, car, cruise, train, bus, hotel, etc.).
4. Online event ticket services.
5. Real estate companies.
6. Car dealerships.
7. Restaurants (table reservations).
8. Online auction sites.
9. Advertisers.

Competitive Advantage

This innovative business method provides a solution to Out of Stock/Sold Out problems that currently does not exist, and it provides a competitive advantage in the marketplace for businesses and an opportunity for sellers to generate additional revenue in the process.

Notes on Development Status

Patent Pending Status - Provisional Utility Application submitted to the USPTO and in the process of filing non-provisional application.

Comments on Deal Structure, Potential Terms and Restrictions

Would like to explore the possibility of selling (assigning) all rights, titles and interest of a provisional application for a business method patent, the right to continue prosecuting the application, the right to convert it to a non-provisional application, and any non-provisional application resulting from use or incorporation by reference to the provisional, any continuation, continuation-in-part, division, international patent, and so forth.
View this listing on the Tynax website: www.tynax.com/listing/4866