International E-Commerce System with Tariff and Currency Handling
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current online systems for accessing U.S. high-end products are hindered by restrictions on international shipping and the lack of credit card ownership or insufficient credit limits for foreign buyers, making it difficult for them to purchase U.S. goods using their local currency in real-time.
Innovation Solution
An international e-commerce system that allows registered users to browse and purchase from mirrored websites of affiliated stores, enabling real-time transactions in their local currency, with options for payment via credit card or pre-paid accounts, and streamlined shipping and customs processes, including display of shipping costs and import taxes/tariffs at the time of purchase.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If U.S. companies ship goods to foreign countries, then foreign buyers can access U.S. products, but shipping costs become disparate and complex
Solution Approach 1:
The patent introduces a centralized e-commerce platform as an intermediary between U.S. sellers and foreign buyers. This platform consolidates shipping arrangements, negotiates standardized rates with carriers, and presents unified shipping costs to buyers, thereby simplifying the complex shipping cost structure while maintaining international shipping capability
Solution Approach 2:
The patent combines multiple shipping operations and cost calculations into a single integrated process on the e-commerce platform. By merging shipping negotiations, cost calculations, and presentation into one unified system, it reduces the complexity of disparate shipping costs while preserving the ability to ship internationally
2Ease of operation
If foreign buyers use their local currency, then transaction accessibility improves, but currency conversion delays occur
Solution Approach 1:
The patent implements preliminary currency conversion by maintaining multiple currency accounts in advance. The system pre-loads funds in various currencies and automatically selects the appropriate currency for transactions, eliminating real-time conversion delays and improving payment accessibility while maintaining local currency usage
Solution Approach 2:
The patent creates virtual copies of currency accounts across different currencies. Instead of converting physical currency in real-time, the system maintains parallel account representations in multiple currencies, allowing instant transactions in the buyer's local currency without conversion delays
3Adaptability or versatility
If credit card limits are increased for foreign buyers, then purchasing power improves, but credit risk increases
Solution Approach 1:
The patent introduces the e-commerce platform as an intermediary that holds funds in pre-paid accounts before transactions. This intermediary structure allows buyers to access higher purchasing capacity through platform-held funds rather than credit card limits, while the platform maintains control over fund disbursement, thereby reducing credit risk
Solution Approach 2:
The patent enables buyers to self-load funds into their pre-paid accounts on the platform. This self-service mechanism allows buyers to determine their own purchasing capacity by depositing funds, eliminating the need for credit limits while the platform maintains security by only disbursing funds that have been pre-deposited, thus managing credit risk
4Ease of operation
If custom processes are simplified, then importation ease improves, but tax collection complexity increases
Solution Approach 1:
The patent combines tax calculation, customs documentation, and shipping information into a single integrated process on the e-commerce platform. By merging these previously separate complex functions into one unified system, it simplifies the importation process for buyers while managing tax collection complexity through automation and consolidation
Data Source
AI summary
The present invention is an electronic commerce system that includes a virtual mall server for implementing mirror websites of stores offering products through and affiliated with the virtual mall. The mirrored product data can be viewed by purchasers using a remote computer or wireless device. The system also includes a tariff database including tariff or importation tax information for at least one country. The tariff of tax information is displayed to the user so that the user knows the expense of importing a purchased product into the user's country. The virtual mall server also provides to the user's remote computer real-time information of product price in a currency of choice as well as shipping fee information.