Best Offer Management in Network Commerce Systems
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Solution Overview
Problem
Current electronic commerce mechanisms fail to accurately reflect non-electronic transaction processes, leading to sellers not maximizing prices and buyers being uncomfortable with online auctions, resulting in reluctance to participate in transactions, which constrains the growth of electronic commerce.
Innovation Solution
A network-based commerce system that allows sellers to present items for sale with an option for buyers to make best offers, including additional binding terms, and includes a system for managing and communicating these offers, ensuring sellers have control over transaction terms and buyers can comfortably participate.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If current electronic commerce mechanisms (online auctions) are used, then sellers can list items for sale, but sellers do not obtain maximized prices and do not have control over the final selling price
Solution Approach 1:
Instead of the seller setting a fixed price or the buyer making bids in an auction, the invention inverts the process by having the buyer submit a 'best offer' to the seller, who then has the option to accept or reject. This reversal gives the seller control over the final price while still allowing market forces to influence the offer amount, thereby maximizing price while maintaining control.
Solution Approach 2:
The system dynamically adapts the transaction process based on seller preferences. Sellers can choose between different listing formats (auction, fixed price, or best offer), and the process continues dynamically with buyers submitting offers and sellers making acceptance decisions until a transaction is completed or the listing expires. This dynamic approach allows optimization of both price and control based on specific transaction contexts.
2Productivity
If online auctions are used, then items can be sold electronically, but buyers are not comfortable with the process and are reluctant to participate
Solution Approach 1:
The 'best offer' mechanism copies the familiar offline negotiation process where buyers make offers and sellers accept or reject them. By replicating this well-known, comfortable interaction model in the electronic environment, buyers experience reduced anxiety and increased willingness to participate, thereby boosting electronic commerce growth without sacrificing productivity.
Solution Approach 2:
The system acts as an intermediary that facilitates the best offer process, providing structure and security to the transaction. The platform manages offer submission, tracking, and communication between buyers and sellers, creating a safe and familiar environment that mirrors traditional commerce while enabling electronic transaction efficiency and growth.
3Ease of operation
If sellers set fixed terms of sale, then transaction control is maintained, but buyers are reluctant to purchase due to lack of flexibility
Solution Approach 1:
The transaction process is made dynamic, allowing it to adapt between structured and flexible modes. Sellers can set initial terms and conditions, but buyers are empowered to submit best offers that may modify price or other terms. The system dynamically manages this flexibility while maintaining seller control through acceptance/rejection decisions, balancing buyer flexibility with process manageability.
Solution Approach 2:
The system allows parameter changes within defined boundaries. Sellers can specify which parameters are negotiable (such as price) and which are fixed (such as shipping terms or minimum quantity). This selective parameter flexibility enables buyer flexibility where desired while maintaining seller control over critical parameters, without overwhelming complexity in the overall transaction process.
Data Source
AI summary
Various embodiments include systems, methods, and software to manage offers in a network-based commerce system. One embodiment includes providing sellers an option when listing an item for sale to receive best offers for the item from buyers. This embodiment further includes receiving best offers submitted by offerees via the network-based commerce system and notifying sellers of received best offers. Some embodiments further include providing sellers an option to accept, reject, or ignore the individual best offers received. In some such embodiments, ignored best offers expire after a period, such as 48 hours. Yet further embodiments include notifying offerees of acceptance or rejection of their submitted best offers.