Dynamic Time-Incremented Pricing System for E-Commerce
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Solution Overview
Problem
Current electronic commerce systems and auction websites face challenges in determining the optimal discount price for products, leading to potential losses due to aggressive discounting or lowball bidding strategies, which result in sales prices below market value.
Innovation Solution
A method and apparatus for time-incremented purchase price discounting, where a seller lists a product at an initial price that automatically decreases by predetermined increments over time, allowing buyers to submit maximum bids, ensuring the product is sold at the highest market price without static pricing uncertainty.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If a seller uses static discount pricing, then the pricing process is simple, but the seller cannot find the optimum discount that maximizes revenue while reducing inventory
Solution Approach 1:
The patent applies dynamics by transforming static pricing into dynamic pricing. The system automatically adjusts prices in real-time based on market conditions, competitor actions, and inventory levels. This allows the pricing to adapt continuously rather than remaining fixed, resolving the contradiction between simplicity and optimal price determination.
Solution Approach 2:
The patent implements feedback mechanisms where the system continuously monitors market data, bid patterns, and inventory status, then uses this information to adjust pricing automatically. The feedback loop enables the system to learn from market responses and optimize prices dynamically, achieving both simplicity through automation and precision through data-driven adjustments.
2Ease of operation
If a seller uses auction websites with fixed time limits, then the auction process is straightforward, but buyers engage in lowball bidding strategies that result in prices below market value
Solution Approach 1:
The patent replaces fixed time limits with dynamic time adjustments. The system extends or shortens auction durations based on bidding activity, market conditions, and seller preferences. This dynamic approach prevents last-minute lowball bidding by allowing the auction to continue if valuable bids are received, while maintaining operational simplicity through automated rules.
Solution Approach 2:
The patent applies preliminary anti-action by implementing safeguards against lowball bidding before it occurs. The system monitors bidding patterns in real-time and can intervene by extending the auction or adjusting prices to prevent premature lowball bids from determining the final price, thus protecting market value achievement while keeping the process straightforward.
3Loss of energy
If a seller waits too long to discount prices, then potential profits are maximized, but inventory accumulates indefinitely increasing warehousing costs
Solution Approach 1:
The patent implements continuous useful action through automated, continuous price monitoring and adjustment. The system never stops evaluating market conditions and can make price changes at any time based on real-time data. This continuous operation ensures inventory is moved efficiently without unnecessary delays, balancing profit maximization with timely inventory reduction.
Solution Approach 2:
The patent applies self-service by enabling the pricing system to automatically manage itself without constant seller intervention. The automated system monitors inventory levels, analyzes market conditions, and adjusts prices independently to achieve optimal outcomes. This self-managing capability resolves the contradiction by continuously optimizing prices while reducing the need for seller time and effort.
4Productivity
If a seller aggressively discounts prices to move inventory quickly, then inventory reduction is achieved, but the seller forfeits potential profits
Solution Approach 1:
The patent uses dynamics to adjust discount aggressiveness in real-time based on market response. Rather than applying fixed aggressive discounts, the system monitors bidding activity and market conditions, then adjusts prices dynamically. This allows the seller to achieve inventory movement when appropriate while capturing maximum profit when market conditions support higher prices.
Solution Approach 2:
The patent implements feedback loops where the system monitors the effectiveness of price changes and adjusts subsequent pricing strategies accordingly. If aggressive discounts successfully move inventory, the system learns this pattern; if profits are forfeited unnecessarily, the system adjusts. This feedback mechanism balances inventory turnover speed with profit preservation.
Data Source
AI summary
A method and apparatus for time incremented purchase price discounting includes a process for time incremented purchase price discounting whereby a seller offers a product for sale on a seller website at an initial purchase price and then the product purchase price is automatically discounted by a predetermined amount at predetermined increments of time until either, the product is sold, or a seller determined minimum product purchase price is reached.