Merchant Attribution via Machine-Readable Tags
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Solution Overview
Problem
Brick-and-mortar merchants incur significant costs providing services to customers, yet they often lose sales revenue to online retailers, as customers may purchase items after interacting with products in-store but ultimately buy from lower-cost online sources, leading to a disadvantage for the merchants.
Innovation Solution
Implementing machine-readable tags that include merchant identification, allowing customers to associate items with merchants through mobile devices, enabling online retailers to attribute sales and provide commissions to the original merchant, even if the sale is made through a different channel.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If brick-and-mortar merchants provide in-store services and display items, then customers can interact with goods and receive sales support, but merchants incur significant costs and lose sales revenue to online retailers
Solution Approach 1:
The patent introduces an intermediary system consisting of machine-readable tags, mobile devices, and a server that mediates between brick-and-mortar merchants and online retailers. When a customer views an item in-store, the system automatically tracks this interaction and facilitates commission payment from the online retailer to the merchant, resolving the revenue loss issue while preserving the customer service model
Solution Approach 2:
The patent implements a feedback mechanism where customer interactions with items in-store are automatically tracked and communicated to the online retailer. The system provides feedback about which items were viewed, enabling the online retailer to attribute sales to the appropriate merchant and pay commissions, thereby closing the loop between in-store service and revenue distribution
2Adaptability or versatility
If merchants maintain physical retail locations and staff, then customers can browse and interact with products, but the ability to purchase from lower-cost online sources undermines merchant profitability
Solution Approach 1:
The patent creates a universal system that works across different retail channels (brick-and-mortar and online). The machine-readable tag system and commission mechanism enable both in-store and online merchants to participate in the same economic ecosystem, allowing customers to purchase from any channel while ensuring the original merchant receives appropriate compensation
Solution Approach 2:
The patent applies preliminary action by equipping items with machine-readable tags before they leave the merchant's control. This pre-established tracking mechanism ensures that when customers later purchase from online retailers, the original merchant's contribution is already recorded and can be automatically compensated, preventing revenue loss before it occurs
Data Source
AI summary
A brick-and-mortar merchant may receive a commission when a user interacts with an item at the brick-and-mortar merchant but later purchases the same or similar item from another source such as an online retailer. Interaction between the user and the brick-and-mortar merchant may be determined by geolocating a mobile device near or within a location of the merchant. In some embodiments, the online retailer may refer a customer to retail partners that may offer the item for viewing. The online retailer may track and compensate the retail partner for interacting with a user when the user visits the retail partner's location and possibly receives sales help and then later obtains the item from the online retailer.