WO2007002624A2

WO2007002624A2 - System and method for facilitating the sale of a tangible good through an auction process

Info

Publication number: WO2007002624A2
Application number: PCT/US2006/024882
Authority: WO
Inventors: Wess Eric Sharpe
Original assignee: Namx, Inc.
Priority date: 2005-06-27
Filing date: 2006-06-27
Publication date: 2007-01-04
Also published as: WO2007002680A2; WO2007002650A3; WO2007035195A9; WO2007002684A1; WO2007002754A2; WO2007002759A3; WO2007002650A2; WO2007002754A3; WO2007035195A2; WO2007035195A3; WO2007002680A3; WO2007002759A2; WO2007002624A3

Abstract

A method and system for facilitating the sale of a tangible good through an auction is disclosed. Pursuant to the method and system, an identification code of the tangible good is inputted into a distribution system network. A status report of the tangible good is received, the status report of the tangible good being based on a predetermined set of factors. Upon an indication, in the status report, that the tangible good has been rejected from inclusion in the distribution system network, the tangible good is assigned to an auction. The tangible good is transported to the auction. Finally, the tangible good is auctioned. Upon the successful sale of the tangible good through the auction, the tangible good is transported to a buyer.

Description

SYSTEM AND METHOD FOR FACILITATING THE SALE OF A TANGIBLE GOOD THROUGH AN AUCTION PROCESS

[01] CROSS-REFERENCES TO RELATED APPLICATIONS.

[02] The Present Invention claims priority to pending United States Provisional Patent Application No. 60/694,318, entitled "Automotive Market Exchange And Logistical System," filed on 27 June 2005, and invented by Wess Eric Sharpe. Consequently, the contents of this U.S. Provisional Patent Application are hereby incorporated herein, by reference, in its entirety, in the Present Invention.

[03] Further, the following co-pending and commonly-assigned Patent Cooperation Treaty (PCT) Patent Applications which designate among other countries, the United States of America, have been filed on the same day as the Present Invention. Each of these PCT Patent Applications relate to and further describe various aspects of the embodiments disclosed in the Present Invention, as well as the above-referenced United States Provisional Patent Application. Consequently, the contents of each of the following PCT Patent Applications are hereby incorporated herein, by reference, in their entireties, in the Present Invention: [04] "System and Method for Distribution of Wholesale Goods," filed on 27 June 2006, listing Wess Eric Sharpe as the Inventor, and accorded U.S. Non-Provisional Application No. and PCT Application No. ; 2)

[05] "System and Method for Tangible Good Valuation," filed on 27 June 2006, listing Wess Eric Sharpe and Eric Burton Schorvitz as Inventors, and accorded U.S. Non-Provisional Patent Application No. and PCT Application No. ; [06] "System and Method for Inventory Control," filed on 27 June 2006, listing Wess Eric Sharpe and Eric Burton Schorvitz as Inventors, and accorded U.S. Non-Provisional Patent

Application No. and PCT Application No. ;

[07] "System and Method for Controlling Dealer/Consumer Interaction," filed on 27 June 2006, listing Wess Eric Sharpe as the Inventor, and accorded U.S. Non-Provisional Patent

Application No. and PCT Application No. ; and

[08] "System and Method for Control, Distribution and Purchase of Wholesale Goods and Related Interactions," filed on 27 June 2006, listing Wess Eric Sharpe and Eric Burton Schorvitz as Inventors, and accorded U.S. Non-Provisional Patent Application No. and PCT Application No . .

[09] TECHNICAL FIELD OF THE PRESENT INVENTION.

[010] The Present Invention relates, generally, to the facilitation of a tangible goods distribution system, and, more particularly, to a system and method for facilitating the inspection, assignment, promotion, sale, shipping and transfer of a tangible good through an auction, or auction-like, procedure.

[011] BACKGROUND OF THE PRESENT INVENTION.

[012] Inefficient distribution has been a long-standing problem for many types of goods. This problem is particularly acute with respect to vehicles. The number of possible configurations for a specific year, make and model based on available colors, various options, and various configurations is more often than not greater than a billion. Conversely, vehicle dealers can stock only a small percentage of the configurations given space and cost constraints on maintaining inventory. The relatively small local inventory of a vehicle dealer relative to the numerous possible vehicle configurations makes it highly unlikely that the dealer will be able to offer the exact vehicle desired by a customer. Local inventories of used vehicles have an even lower probability of meeting actual consumer demands given additional variables such as mileage, cosmetic condition, etc. Dealers and consumers therefore often settle on a less than perfect new or used vehicle transaction reducing sales, consumer satisfaction, prices and profits and requiring increasing incentives while also creating a high pressure sale process disliked by consumers. The depreciation in dealer to consumer sale prices of used vehicles also affects the amount dealers are willing to pay consumers on trade-ins of used vehicles, further decreasing the consumer's purchasing power for new vehicles sales and creating an unfortunate cycle of depreciation. [013] In addition to sales price and profits, the inability to match consumer demand with inventory harms financing operations because it (i) reduces the amount individuals are willing to pay up-front and in monthly payments; and (ii) makes it even more difficult to match low credit buyers with appropriate vehicles. Further, the inefficient distribution of vehicles also has negative effects on the freight transportation industry. In particular, freight carriers are not provided with information sufficient to optimize freight transport and many transporters waste significant resources. [014] A variety of solutions have been considered to make vehicle distribution more efficient. At the manufacturing level, build to order and late customization of orders have been attempted. In addition to their relative ineffectiveness, these efforts are unrealistic given other factors that require advance planning for optimal use of manufacturing assets and low cost production. Further, manufacturing level solutions such as these, actually increase vehicle costs given requirements for parts storage and movement away from lean manufacturing. [015] Several e-commerce based systems for improving product distribution have also been proposed or attempted. Some systems - such as direct order manufacturing - would eliminate the dealer network. Dealers, however, provide important functions such as distribution of information and product, trade-in opportunities, indirect financing, and servicing and also provide a face-to-face relationship that is an important aspect of the retail sale of goods such as vehicles.

[016] One existing e-commerce based system that leverages the existing dealer structure for improved distribution of new vehicles is the electronic dealer trade system developed by vehicle manufacturers. Using this system, dealers can locate vehicles at other dealers (or in production for, or transit to, other dealers) and initiate a trade. Dealer trade systems, however, are disadvantageous because they consume significant time of the dealer that may turn out to be a wasted effort - there is no certainty the dealer will be able to obtain the vehicle they have located, much less at a desired price (no price mechanism exists in the dealer trade system). Arranging trades can also be difficult because one dealer (the dealer with the vehicle) is typically in a much better negotiating position than the other dealer (the dealer who wants the vehicle). The dealer looking to make a trade also does not have an easy mechanism for identifying the dealer that will offer the greatest possible return. Finally, even if a trade is consummated, the dealers must spend additional time arranging for freight transportation. [017] For used vehicles, auctions have provided improved distribution not only between dealers, but also between dealers and re-marketers (e.g., corporate and government fleets, rental car companies, etc.). Physical auctions bring more buyers and sellers together for increased value, but are disadvantageous because they require transportation and storage of product (time and cost) and active participation of buyers and sellers (travel time and cost). Further, physical auctions often fail to convey adequate product information to enable buyer confidence and still significantly limit the pool of available participants. [018] Recent auction improvements include the use of Internet video to bring more buyers and reduce participant costs. More significantly, several auctioneers and re-marketers have developed or implemented e-commerce based systems for used vehicle wholesaling such as Manheim Online (www.manheim.com), ATC (www. autotradecenter . com) , Adesa (www.adesa.com) and General Motors (www, gmonlineauctions. com) . Car manufacturers have also adopted electronic systems for wholesaling used vehicles to their dealers and allowing dealers to exchange used vehicles. The limited number of participants in these systems, however, fails to optimize value. Further, these systems also do not integrate freight delivery resulting in buyer uncertainty regarding delivery costs and timing. The inability to guarantee freight cost and delivery in these systems creates uncertainty thereby decreasing potential sales, satisfaction, and profits. [019] The inventors herein have recognized a need for a system and method for distribution of tangible goods that will minimize and/or eliminate one or more of the above-identified deficiencies.

[020] SUMMARY OF THE PRESENT INVENTION,

[021] The Present Invention provides a system and method for facilitating the sale of a tangible good through an auction process.

[022] To this end, a method and system for facilitating the sale of a tangible good through an auction is disclosed. Pursuant to the method and system, an identification code of the tangible good is inputted into a distribution system network. A status report of the tangible good is received, the status report of the tangible good being based on a predetermined set of factors. Upon an indication, in the status report, that the tangible good has been rejected from inclusion in the distribution system network, the tangible good is assigned to an auction. The tangible good is transported to the auction. Finally, the tangible good is auctioned. Upon the successful sale of the tangible good through the auction, the tangible good is transported to a buyer. [023] These and other advantages of the Present Invention will become apparent to one having ordinary skill in the art from the following detailed description, as well as the accompanying drawings illustrating features of the Present Invention by way of example.

[024] BRIEF DESCRIPTION OF THE FIGURES. [025] Figure 1 illustrates a diagrammatic view of a system for the distribution of tangible goods in accordance with the Present Invention;

[026] Figure 2 illustrates a diagrammatic view of a component of the system of Figure 1 ; and [027] Figure 3 illustrates a top-level flow chart for a method and system for facilitating the sale of a tangible good through an auction process, developed in accordance with the tenets of the Present Invention.

[028] DETAILED DESCRIPTION OF THE PRESENT INVENTION. [029] Referring now to the Figures, wherein like reference numerals are used to identify identical components in the various views, FIG. 1 illustrates system 20 for distribution of tangible goods in accordance with the Present Invention. System 20 is particularly adapted for use in distributing types of goods that are tangible (i.e., have a physical structure) and in which each of the goods is unique in some way. In particular, system 20 is adapted for use in distributing vehicles, such as, for example, automobiles. Vehicles are unique in that each vehicle has a unique identification code (i.e., a Vehicle Identification Number, or VIN) that allows information about the vehicle (e.g., prior repair history, ownership history, etc.) to be tracked. Although system 20 is particularly adapted for these types of tangible goods, however, it should be understood and contemplated that system 20 may be used for distribution of a wide variety of tangible goods.

[030] System 20 includes computer system 22, or central computing architecture. Computer system 22 includes one or more microprocessors configured in accordance with the Present Invention by programming instructions (i.e., software) to perform one or more of the functions described herein. In particular, computer system 22 establishes an electronic wholesale marketplace for a type of tangible good in which wholesalers can sell and purchase the tangible goods, and, further, establishes an electronic freight marketplace for the tangible goods in which freight haulers can accept contracts for the transport of the recently-purchased tangible goods. In this connection, computer system 22 is designed to allow a variety of participants to interact with the wholesale marketplace and the freight marketplace, including, for example, dealers 24, re- marketers 26 (e.g., in the case of vehicles, rental car companies, corporate and government fleet owners, leasing institutions, etc.), freight haulers 28, manufacturers 30, financial institutions 32, and third party product and service providers 34 (e.g., third party inspection services, storage and distribution services, auctioneers, information providers, etc.). The number and type of marketplace participants — and the type of interaction of those participants with the marketplaces - will vary depending upon the type of good and other factors. Computer system 22 will also assume a wide variety of computing configurations depending on the type of good and other factors (e.g., type of marketplace participants). As such, computer system 22 may include a plurality of computing devices arranged in one or more of a plurality of known computing architectures. Computer system 22 may, for example, include servers, such as servers 36, 38, 40 and may include one or more supercomputers 42. [031] As used herein, the term "server" refers to a computing device coupled to a network and configured by programming instructions (i.e., software) to provide services to other computing devices (including other servers). Referring to FIG. 2, the architecture of each server 36, 38, 40 may be described as a series of layers including operating system layer 44, database layer 46, application layer 48 and interface layer 50.

[032] Operating system layer 44 of each server 36, 38, 40 may include a conventional operating system, such as, for example, one of the operating systems sold under the registered trademark "WINDOWS®" available from Microsoft Corporation of Redmond, Washington. It should be understood and contemplated, however, that other conventional operating systems, such as, for example, those based on the Linux or UNIX operating systems or operating systems for the Apple computer system (e.g., OS X) may alternatively be used. [033] Database layer 46 is configured to provide a static and dynamic contact structure for each server 36, 38, 40. Database layer 46 is used to provide both intermediate information while each server 36, 38, 40 executes operations and long-term storage of data. Database layer 46 may employ a database management system (DBMS) such as the DMBS sold under the trademark "SQL SERVER" by Microsoft Corporation of Redmond, Washington. It should be understood and contemplated, however, that other DMBSs may alternatively be used. [034] Application layer 48 is configured to communicate with and between database layer 46 and interface layer 50 and configures the server 36, 38, 40 to perform the functions described in greater detail hereinafter. Application layer 48 may be implemented using conventional software development components and may further include a combination of JavaScript, VB Script and Active Server Pages and other conventional software components to provide required functionality.

[035] Interface layer 50 provides a graphical and communications interface between servers 36, 38, 40 and between servers 36, 38, 40 and supercomputers 42 and the computing devices used by dealers, re-marketers, freight haulers, financial institutions and third party service providers. Interface layer 50 may be configured to be extensible Markup Language or Simple Object Access Protocol compliant. [036] Referring again to FIG. 1, server 36 may comprise Web servers or application servers running application server software (and/or a combination of the two). Server 38 may comprise database servers running database server software that provides database related services - including access, retrieval from, and storage to databases 52 - to servers 36, 40 and supercomputer 42. [037] The information stored in databases 52 will vary depending on factors, such as, for example, the tangible good, as well as the marketplace participants. In the case where the tangible good is a vehicle, databases 52 may include information relating to the market participants. For example, databases 52 may store information about each participant, such as, for example, business entity information (name, addresses, identification information, SIC classification, etc.), contact information (identification of primary contacts and their titles, phone numbers, email addresses, etc.) authentication information, relationships (e.g., linking dealers by a shared characteristic such as common ownership), controls on marketplace participation (defined by the dealers 24 themselves or by manufacturers 30, financial institutions 32, etc.), licenses, insurance coverage, etc. Databases 52 may also include valuation information used in valuation of the tangible goods. For example, databases 52 may include information regarding specifications for the tangible goods and each dealer's labor rate for repair of the tangible goods (i.e., flat rate based on type of repair, or time-based - i.e., hourly - rates) to assist in providing a proper valuation, as well as estimated time for repairing predefined defects in the goods (e.g., a cracked windshield in a vehicle). Databases 52 may also include information about previous marketplace transactions for each tangible good. The above-listed examples of the type of information stored in databases 52 are not meant to be exhaustive, but rather illustrative. It will be evident from the subsequent description that databases 52 will hold a wide variety of information for use by computer system 22.

[038] Server 40 and supercomputer 42 may be used to provide distributed computational resources within computer system 22 and to perform intensive computational and processing functions. Supercomputer 42 may comprise a computing device including a plurality of microprocessors configured to engage in parallel processing, such as, for example those offered for sale by IBM Corp or Cray, Inc. It should be understood and contemplated, however, that other microprocessors may alternatively be used.

[039] Server 40 and supercomputers 42 may be arranged in any of plurality of distributed computing architectures, such as, for example, a two-tier (client-server) computing architecture, or a multi-tier (n-tier) computing architecture, a grid computing architecture or a peer-to-peer computing architecture. Servers 36, 38, 40, or other servers (not shown), may also perform conventional distributed computing functions such as load balancing among the servers 36, 38, 40.

[040] Servers 36, 38, 40 and supercomputers 42 communicate with one another over telecommunications network 54. Telecommunications network 54 may, for example, comprise a local area network (LAN) or wide area network (WAN) and may comprise an Intranet or an Extranet, and, in fact, may utilize the public Internet. An enterprise service bus may be used to W

control communications (including, for example, messaging and routing) over network 54 between servers 36, 38, 40 and supercomputers 42.

[041] The marketplace participants - including dealers 24, re-marketers 26, freight haulers 28, manufacturers 30, financial institutions 32 and third party product and service providers 34 - will use a variety of computing devices to connect to computer system 22 over telecommunications network 56. These devices may include, for example, local server 58, wireless access points 60 and personal computers 62 (such as, for example, desktop or laptop computers and handheld computers such as Personal Digital Assistants (PDAs)). Telecommunications network 56 preferably includes the public internet and may include both wired and wireless networks. For example, freight haulers 28 or other market participants that may be located remotely from wired computers or sites may invoke cellular, satellite or other wireless technologies as part of network to enable communication of their computing devices with system 22. [042] Server 58 may comprise a Web server or an application server or a combined Web/application server. Server 58 may provide a variety of functions, depending on the application. In accordance with one aspect of the Present Invention, however, server 58 may be configured to communicate with an inventory management system 64 for a dealer 24 of tangible goods (e.g., a vehicle dealer's DMBS system) for inventory control. Server 58 may receive information pertaining to the dealer's inventory from inventory management system 64 and provide it to computer system 22. [043] Wireless Access Points (WAPs) 60 are provided to enable communication between wireless computing and communication devices, and may comprise conventional structures known in the art. For example, WAPs 60 may be used to allow inspectors to inspect the tangible goods located at dealerships (e.g., outside storage lots) or other locations lacking access to a wired network and to send information to and receive information from computer system 22. [044] Personal computers 62 are provided to perform a wide variety of functions, many of which are described herein, depending on the market participant. Personal computers 62 may function as client in a client-server configuration with servers 36, 38, 40 of computer system 22. In particular, personal computers 62 may run client software to access computer system 22 such as an internet browser (in the case of a web-based application) or a customized graphical user interface. [045] Servers 58, WAPs 60 and personal computers 62 may communicate with one another at a market participant's location or locations over private telecommunications network 66 such as a LAN or WAN. Servers 58, WAPs 60 and personal computers 62 may further communicate with computer system 22 through telecommunications network 56. Again, an enterprise service bus may be used to control communications (including messaging and routing) over telecommunications network 56 between servers 58, WAPs 60 and personal computers 62 and computer system 22.

[046] In some cases, the quality of a tangible good may result in its sale being inefficient to the distribution system described above. This would occur in cases in which, for example, the tangible good does not meet the minimum quality requirements for inclusion in the distribution system. Alternatively, a seller, for any number of reasons, may prohibit a tangible good from entry.

[047] In such cases, the Present Invention provides an alternate means by which the tangible good may nevertheless be sold, distributed or transferred. Preferably, the means by which the sale, distribution or transfer of the tangible good can be effected is through the use of an auction. However, it is nevertheless contemplated that the means of sale, distribution or transfer may be by any other similar system that facilitates the congregation of multiple potential buyers of a plurality of tangible goods. [048] To this end, one embodiment of the Present Invention contemplates an auction system which leverages the administration, communications, freight logistics, inspection, valuation, intelligence, automation, market and settlement systems of an auction, or auction-like, process in an effort to facilitate the sale of a tangible good. In this manner, the Present Invention streamlines the wholesale trade of tangible goods in and out of auctions with a great degree of efficiency. The effectuation of these systems will enable inventory intelligence integration, manual and automated entrance procedures and search and results dissemination, as well as e- commerce and retail integration, in a manner very similar to the distribution (and other) systems, both those disclosed herein and those disclosed in the aforementioned related Patent Applications. [049] Additionally, based on the initial inspection, the valuation aspects set forth in the Present Invention will preferably isolate elements relating to the value of the tangible good, and combine them to calculate precise values for the tangible goods sold via the auctions (both within and without of the system disclosed herein), in an effort to provide the most accurate valuation. This valuation may also take into account prices for similar tangible goods sold at previous auctions. Through the auction process contemplated by the Present Invention, the cost of all freight, travel, depreciation, interest, human resources, settlement and administration will be lower, while, at the same time, wholesale capabilities will increase for auction activities. The auction systems of the Present Invention preferably will also include real time communication of all available capacity (such as, for example, in the form of lane and run numbers) at the auctions. [050] FIG. 3 illustrates a top-level flow chart of the general operation procedure of the auction process, in accordance with the tenets of the Present Invention. Referring to FIG. 3, in operation, the auction systems of the Present Invention preferably works as detailed in the following description.

[051] As illustrated in Block 100, a seller, in possession of a tangible good, scans, or inputs, an identification code, representing the tangible good, into a personal computer, hand-held PDA (or similar device), as described above. Preferably, this step of scanning is preferably by any currently known means of scanning, including those described in the Related Applications. It is intended that the identification code be unique to the tangible good, such as, for example, the VIN of an automobile. Upon scanning, the personal computer, which is in electronic communication with the distribution system described above, will respond with a status report of the tangible good. [052] As illustrated in Block 200, upon scanning, if the status report indicates that the tangible good does not qualify to be placed in any of the distribution systems described above (or, alternatively, in the case in which an inspector - or other subscriber to the system described herein - rejects a tangible good for any reason whatsoever), an auction system indicator will immediately appear on the personal computer, indicating to the scanner that the tangible good, if desired to be sold, will be sold in accordance with the auction system of the Present Invention. Additionally, the auction system indicator will indicate to the scanner the most optimum auction, along with an auction date and other auction specifics (i.e., lane and run number). Preferably, the means by which a tangible good is assigned to a specific auction will be based on previous auction results (concerning, preferably, similar tangible goods), as well as other factors, including, for example and without limitation, the cost and time of transportation of the tangible good to the physical locale of the auction. Additionally, the auction assignment may take into account various other factors, such as, for example, seller preference, a lack of similar tangible goods at a specific auction (in an effort to maintain a balance of similar tangible goods at the auctions), etc. In any event, the assigned auction may not be definite, as the auction system of the Present Invention permits sellers to easily adjust the auction assignment, if desired. [053] It is preferred that the auction system indicator will consist of an auction entry interface, or display, that appears on the computer. Preferably, the auction entry interface will provide detailed information about the tangible good, as well as the auction to which the tangible good has been assigned. It is contemplated that the auction entry interface may also be configured to allow the seller to edit the entry. [054] After the auction has been assigned, freight information (as disclosed above) will be instantly available to all transporters, and the tangible good will be shipped to the physical location of the auction. This is illustrated in Block 300.

[055] Blocks 400-700 concern the treatment of the tangible good upon its arrival at the physical location of the auction. Once the tangible good has physically arrived at the auction location, the tangible good will be inspected in accordance with the inspection process (disclosed above), and further renovation is conducted upon the tangible good, if necessary. Upon completion, the tangible good is sent to the appropriate auction location, preferably based on the pre-assigned lane and run numbers of the particular tangible good. Additionally, a specific auction time and/or will be established, as will be various other auction parameters (i.e., length of auction, number of bids, etc.). Finally, an initial auction price is established.

[056] If it is determined that renovation (or reconditioning) is necessary for the tangible good, the system of the Present Invention will immediately determine a proper location and scheduling time for renovation. Preferably, this determination will occur in the same manner as the determination for the auction location, described above. Preferably, included within this determination is the providing of arrangements for transportation to a renovation facility, if such is necessary. [057] It is preferred that the above-listed treatments (set forth in Blocks 400-700) are performed prior to the opening of the auction. However, the exact order of the treatments may vary according to the protocols of the particular auction location, and, in some case, one or more treatments may not be included.

[058] For example, after the tangible good has been inspected, and, if necessary, reconditioned, prior to the auction, the auction system of the Present Invention will enable sellers to easily price the tangible good. To set the price, a seller would simply enter the starting bid and the floor price. Alternatively, the seller can use real time market value to set the price for the tangible good by entering the minimum percentage or a dollar amount over or under market value. In response, the system will show the likelihood of a bid meeting the price points and enable adjustment. [059] To establish how the tangible good will be represented at the auction, the seller may also select physical, virtual, or automated representation (Block 800). Physical representation means that the seller will be at the auction; virtual representation means that the seller will represent the tangible good via live video feed; and automated representation means that the system will represent the tangible good based on the predefined criteria set by the seller. [060] As illustrated in Block 900, the tangible good is auctioned off. During this procedure, all auction activity will preferably be broadcast live to interested members (or, alternatively, subscribers) for bidding. If the tangible good fails to sell at auction, the pre-auction treatments, as well as the auction video, will remain available, for use and viewing by other interested members, until the tangible good is sold.

[061] In addition to abating the cost, time and risk inherent in auction entry for sellers, the auction system of the Present Invention will vastly improve the representation of the tangible good, access to the tangible good and confidence for buyers, while, at the same time, reducing their cost and time of auction interaction as well. Each auction inspection will additionally be available to all buyers. For all online buying activity, representations will include cost and time for freight and reconditioning, plus the wholesale price and auction fees as compared to market valuation. [062] Additionally, because there are many auctions and many tangible goods contemplated by the Present Invention, online buyers will preferably be able to search for tangible goods by various criteria (such as, for example, model, time and price) across a plurality of auctions simultaneously. Block 1000 illustrates this aspect. For example, the buyer may: [063] 1. Buy or bid on any tangible good inspected and available in the market;

[064] 2. Setup automated bidding when the tangible good physically passes through to the auction lane; or [065] 3. Bid on the tangible good via live interaction online while it is up for auction.

[066] In situations in which the buyer desires to bid on two or more tangible goods that are available in different auctions simultaneously, the system possesses the capability to split accordingly.

[067] Further, based on the inventory intelligence, members can likewise enable a constant automation of buying and selling tangible goods at the auctions with such factors as ratings, i.e., 9.0 positive or negative, which may be set by the buyers, or, alternatively, by the system during the inspection process, described above. In such situations, buyers input a desired rating and, upon the receipt into an auction of a tangible good that meets or exceeds the desired rating, the system of the Present Invention will preferably attempt to purchase the tangible good automatically. It is also contemplated that this procedure may be used for the sale of tangible goods. [068] Once a buyer has placed a successful bid on the tangible good and the auction process has closed (illustrated in Block 1100), the tangible good will immediately be prepared for shipment to the buyer (illustrated in Block 1200). As from before, the shipment of the tangible good to the buyer will preferably be by methods disclosed herein.

[069] It is understood that the foregoing detailed description and accompanying examples are merely illustrative and are not to be taken as limitations upon the scope of the invention, which is defined solely by the appended claims and their equivalents. Various changes and modifications to the disclosed embodiments will be apparent to those skilled in the art. Such changes and modifications can be made without departing from the spirit and scope thereof.

Claims

Claims:

What Is Claimed Is:

L A method for facilitating the sale of a tangible good through an auction, comprising: inputting an identification code of the tangible good into a distribution system network; receiving a status report of the tangible good, the status report of the tangible good being based on a predetermined set of factors; upon an indication, in the status report, that the tangible good has been rejected from inclusion in the distribution system network, assigning the tangible good to an auction; transporting the tangible good to the auction; and auctioning the tangible good; whereby, upon the successful sale of the tangible good through the auction, the tangible good is transported to a buyer.

2. The method of Claim 1 , wherein the tangible good is an automobile.

3. The method of Claim 1 , wherein the identification code corresponds to a unique identification code representing the tangible good.

4. The method of Claim 1 , wherein the predetermined set of factors includes the salability of the tangible good.

5. The method of Claim 1 , wherein the predetermined set of factors includes the quality of the tangible good.

6. The method of Claim 1, further comprising appraising the tangible good prior to assigning the tangible good to the auction.

7. The method of Claim 1 , further comprising appraising the tangible good after transporting the tangible good to the auction.

8. The method of Claim 1, further comprising conducing an inspection of the tangible good before transporting the tangible good to the auction.

9. The method of Claim 1, further comprising conducing an inspection of the tangible good after transporting the tangible good to the auction.

10. The method of Claim 1, further comprising pricing the tangible good for auction prior to auctioning the tangible good.

11. The method of Claim 1 , wherein the steps of transportation include the selection of an appropriate transportation entity.

12. The method of Claim 1, further comprising providing a seller's representation status at the auction.

13. A system for facilitating the sale of a tangible good through an auction, comprising: means for inputting an identification code of the tangible good into a distribution system network; means for receiving a status report of the tangible good, the status report of the tangible good being based on a predetermined set of factors; upon an indication, in the status report, that the tangible good has been rejected from inclusion in the distribution system network, means for assigning the tangible good to an auction; means for transporting the tangible good to the auction; and means for auctioning the tangible good; whereby, upon the successful sale of the tangible good through the auction, the tangible good is transported to a buyer.