System for combining on-line commerce with retail stores

[0001] This document incorporates by reference all of U.S. patent applicant Ser. No. 09/528,504 filed Mar. 20, 2000, and all of U.S. patent applicant Ser. No. 09/528,653 filed Mar. 20, 2000

[0002] 1. The Field of the Invention

[0003] This invention relates generally to electronic commerce via a global information network, such as the Internet. More specifically, the invention relates to a system that enables a merchant with a brick and mortar store to provide coordinated sales with an on-line web site via the Internet, enabling a consumer to receive goods or services purchased via the Internet by delivery, or by going to the store to pick them up.

[0004] 2. Background of the Invention

[0005] The state of the art in what is considered to be on-line commerce, electronic commerce, or e-commerce, is in its infancy. Nevertheless, there are ongoing attempts to capture market share of e-commerce sales, with many merchants having gone bankrupt in the process. Yet many merchants are convinced of the profitability of the process, given the correct mix of infrastructure and support to make it work.

[0006] The types of merchants that provide e-commerce services can be divided into two different groups. Either the merchant has a brick and mortar presence (to be hereinafter referred to as a conventional store), and wants to add an on-line presence, or the merchant has no conventional store, and strictly provides an on-line presence. It is understandable that most of the merchants who have failed are those that relied strictly on an on-line presence.

[0007] The present invention is directed to those merchants that already have a conventional store infrastructure, and want to add to that an on-line presence. Unfortunately, there is often very little to distinguish one on-line merchant from another. Therefore, it would be an advantage over the state of the art to provide unique on-line services for a merchant with a conventional store infrastructure, to enable the merchant to improve sales and distinguish itself from competitors.

[0008] It is an object of the present invention to provide a system and method that enables a merchant to combine resources associated with conventional stores with e-commerce.

[0009] It is another object to provide unique e-commerce services by enabling a consumer to purchase an item on-line, but go to a conventional store selected by the customer to pick up the purchased item.

[0010] It is another object to provide unique e-commerce services by enabling a conventional store inventory database to make the necessary modifications when items are purchased on-line, but are actually picked up by the customer from the conventional store, thereby affecting that specific store's inventory database.

[0011] In a preferred embodiment, the present invention is a system and method for providing an e-commerce presence for a merchant having a conventional store infrastructure, wherein the e-commerce presence is operated via a global communications network, wherein a consumer can purchase an item, then choose to pick up that item from a conventional store operated by the merchant, instead of having the item delivered, and wherein the conventional store's inventory database is managed so as to reflect the decrease in inventory at the conventional store for the on-line purchase.

[0012] In a first aspect of the invention, the consumer may search the inventory of a conventional store to determine if the item to be purchased is available for pick-up from the conventional store.

[0013] In a second aspect of the invention, the consumer may perform a search for an item to be purchased by pick-up from a conventional store, wherein the search parameters include the distance that the consumer is willing to travel to pick-up the item from a conventional store.

[0014] In a third aspect of the invention, the consumer may send instructions to the conventional store where the consumer will pick-up the item, the instructions including such information as the time that the item should be ready for pick-up by the consumer.

[0015] In a fourth aspect of the invention, the system and method enable the consumer to pay for the purchase on-line, or hold the item for payment at the time of pick-up at the conventional store.

[0016] These and other objects, features, advantages and alternative aspects of the present invention will become apparent to those skilled in the art from a consideration of the following detailed description taken in combination with the accompanying drawings.

[0017] FIG. 1 is a block diagram illustrating the entire ICAM system.

[0018] FIG. 2 is a block diagram showing the default state machine of the ICAM system.

[0019] FIG. 3 is a block diagram combined with a flow chart to illustrate the ICAM search services.

[0020] FIG. 4 is a block diagram combined with a flow chart to illustrate the process of inventory verification from the web site.

[0021] FIG. 5 is a block diagram combined with a flow chart to illustrate the process of locating a product from a store inventory.

[0022] FIG. 6 is a block diagram combined with a flow chart to illustrate the process of locating a product from the customer web site.

[0023] FIG. 7 is a block diagram combined with a flow chart to illustrate the process of finding a price for a product.

[0024] FIG. 8 is a block diagram combined with a flow chart to illustrate the process of determining the sales tax for a product.

[0025] FIG. 9 is a block diagram combined with a flow chart to illustrate the process of determining product shipment routing from a specific conventional store.

[0026] FIG. 10 is a block diagram combined with a flow chart to illustrate the process of determining product shipment routing from the web site.

[0027] Reference will now be made to the drawings in which the various elements of the present invention will be given numerical designations and in which the invention will be discussed so as to enable one skilled in the art to make and use the invention. It is to be understood that the following description is only exemplary of the principles of the present invention, and should not be viewed as narrowing the claims which follow.

[0028] The presently preferred embodiment of the invention is comprises a system and method for providing an improved e-commerce experience for consumers. One of the biggest drawbacks of e-commerce is that there is always a period of at least one day between ordering and delivery. There is generally a premium delivery charge to be paid if delivery is going to be next day service. The present invention overcomes this drawback by providing a customizable system that enables any merchant with a conventional store infrastructure to integrate an on-line shopping presence with the inventories of conventional stores. Thus, the consumer can order an item on-line, such as at a web site for a merchant, and then drive to a conventional store of that merchant and pick-up the item that was just purchased. The present invention enables a merchant to take advantage of its inventory already in place at conventional stores, and make it available for searching and purchasing by on-line e-commerce consumers.

[0029] This integration of the inventory of a brick-and-mortar conventional store, and an on-line e-commerce presence is referred to throughout this document as Integrated Click-and-Mortar, or ICAM. ICAM should be thought of as Middleware, software that functions as a communications enabler as will be explained.

[0030] FIG. 1 is an overview or flowchart of ICAM. Beginning with the web site 100, this is the location that the consumer will visit with a web browser in order to search for products and make purchases. After deciding what product to purchase, the consumer will use the software provided by the merchant at the web site 100 to order the product. This order is transmitted to an order database 102. The order database 102 is owned by the merchant. Orders stored in the order database 102 are detected and read by the order monitor 104. The order monitor is specifically programmed for each merchant in order to operate with the merchant's order database 102. The order monitor 104 includes an order accessor 106 that informs the order monitor 104 when an order has been made by a consumer. The order monitor 104 reads the order, and is also capable of sending a status update to the order database 102. This status is generally to inform the order database 102 that the order has been received for processing.

[0031] Once the order information has been read by the order monitor 104, that information is transmitted to the messaging infrastructure 108. The message infrastructure includes an RT Server 110, the MTA clients 112, and the MQ Server 114. The order monitor 104 specifically transmits the information to the MQ Server 114. The MQ Server generates requests, such as an order to be processed, and places that request in a queue. The request remains in the queue until another process takes that request from the queue for processing.

[0032] Presently, the queues of the system include Order to Central 116, Order to Store 118, Status to Central 120, Status to Monitor 122, Audit to Master 124, and Inventory to Master 126. All of these queues are read by the MQ Server 114 and the MTA Clients 112. The MTA Clients 112 transmit information to the RT Server 110, including the Central OP (Order Processor) 128, Store OP 130, another Central OP 132, Order Monitor 134, and two Master Ops 136, 138. The RT Server 110 can either send the order to the Store Order Processor 140, or wait for the Store Order Processor to poll the RT Server 110.

[0033] The component that takes the order request from the queue of the Messaging Infrastructure 108 is the Store Order Processor 116. The function of the Store Order Processor 116 is to generate a status of the order. That status can include such things as 1) order has been submitted, 2) order has been received, 3) order has been filled, 4) order has been changed, and 5) order has been canceled.

[0034] Each of the conventional stores of the merchant has a Store Order Processor 140. When an item is purchased, the Store Order Processor 140 of the specific conventional store, from which the product is being purchased, retrieves the order from the RT Server 110. The Store Order Processor 140 then sends the order through a File System 142 to a Point Of Sale system (POS) 144. The File System 142 represents short term memory where an order is stored while being filled.

[0035] The Store Order Processor 140 maintains contact with the Messaging Infrastructure 108 by transmitting various status signals to the MQ Server 114. These status signals are inventory to master 146, status to central 148, and order to central 150.

[0036] The Store Order Processor 140 transmits or writes 152 an order to the File System 142. The File System 142 transmits status signals back to the MQ Server 114, including read orders 154, read status 156, and read IV updates 158. The File System 142 stores the order in short term memory until the File System either pushes the order information down to the POS 144, or the POS requests the order information.

[0037] The File System 142 transmits a read orders 160 signal to the POS 144. The POS 144 transmits status signals to the File System 142 including write orders 162, write status 164, and write IV updates 166.

[0038] It is noted that the Store Order Processor 140 also communicates directly with the POS 144. More specifically, the Store Order Processor 140 communicates with a dynamic link library (DLL) HTTP client 168 in the POS 144. The information exchanged includes a product locator 170 and a shipment router 172.

[0039] The POS 144 communicates with a POS database 174 that in turn communicates with a Host Database 176. The Host Database 176 is essentially the inventory database of each conventional store. The Host Database 176 also communicates with a Host Order Processor 178, and transmits catalog updates 180 to the Data Feed input 182 of a Master Index Database 184. In other words, the Master Index Database 184 is updated with the current inventory of each conventional store in order to track the inventory of all the conventional stores of the merchant.

[0040] This update would most likely take place once a day, such as at night when the system is generally going to be performing maintenance tasks. Advantageously, operation of the system is less likely to interrupt operations of the stores by performing the update when the store is not open for business. The update can take the form of only uploading changes to the Host Database 176, or a transmission of all the information stored in the Host Database 176. How often an update is performed may be a function of the size of the inventory, or a desire to have the most accurate inventory database as possible. Thus, the process of updating can be a process that occurs every second, minute, hour or whatever time parameter is desired.

[0041] The more often the update process occurs, the more accurate the searching process will be for the consumer. The tradeoff will be the system overhead in performing the updates, and transmitting the data. It will be up to the merchant to determine if the process should be real-time, or delayed. These decisions will be based upon the overall speed of the systems being used, the bandwidth available for transmission of data, and the likelihood of problems if the update is performed less often.

[0042] Merchants that do not want to perform updates too often can easily set inventory thresholds. For example, no item in inventory will be allowed to go below 50 units during an on-line purchase. This insures the merchant that there will always be at least 50 units available at the conventional store. This threshold can be adjusted for each type of goods in the inventory in order to maximize profits while minimizing the size of the total inventory.

[0043] The Master Index Database 184 includes a Master Index Administrative graphical user interface (GUI) 186, a Master Order Processor 188, and a Master Index Search Processor 190. The function of the Master Index Administrative GUI 186 is to provide an interface for a system administrator who is controlling and programming the functions of the Master Index Database 184. The function of the Master Order Processor 188 is to synchronize the information held in the Master Index Database 184, and the temporary information being stored by the Messaging Infrastructure 108. Finally, the function of the Master Index Search Processor 190 is to provide the interface and other functions that enable the Master Index Database 184 to be searched for goods.

[0044] When a consumer performs a search of inventory that is available at a conventional store, that inventory information is taken from a database associated with the Host Order Processor 178, the Store Order Processor 140, or the Master Order Processor 188. The choice is left to the Merchant to decide which database to use. Note that the Order Processor and Master Index searching are synchronous services 206. The search data is transmitted from the RT Server 110 to the Web Site 100 as search result information is retrieved from the Host Database 176, the Master Index Database 184, or the POS Database 174, depending upon the merchant's selection.

[0045] Note the various elements of the system that communicate directly with the RT Server 110 of the Messaging Infrastructure 108. These components include the Store Order Processor 140, the Host Order Processor 178, the Master Order Processor 188, and the Master Index Search Processor 190, thereby keeping the Messaging Infrastructure well informed of the progress of the transaction being performed.

[0046] Two processes not yet described are processes the communicate directly with the RT Server 110 of the Messaging Infrastructure 108. The first process is referred to as the Store Services GUI 192.

[0047] The second process is the Central Order Processor 194. The Central Order Processor utilizes an order persist file 196 or a Persistence Database 198 for data storage. The function of the Central Order Processor 194 is to determine, when an order is made at the web site 100, which conventional store the consumer will visit to actually make the purchase. Thus, once the conventional store has been chosen, the Store Order Processor 140 of that conventional store will be notified of the order by the RT Server 110. The Central Order Processor 194 communicates with the MQ Server 114 of the Messaging Infrastructure 108 by sending an order to store 200, a status to monitor 202, or an audit to master 204 signal. The order to store signal 200 identifies the conventional store that should receiver the order.

[0048] There are various options that the consumer can select when making a purchase on-line using the present invention. For example, suppose that the consumer has found the item that is to be purchased. The consumer can choose the option of having the system show which stores carry the item, regardless of its availability in the current inventory, if there is more than one store in the area that the consumer might visit. The consumer can also choose to have the system show all the stores that carry the item and also have the item in stock.

[0049] The search parameters that are used by the system to determine the location of conventional stores that are near to the consumer include a zip code and a radius. For example, the consumer can provide a zip code and specify that only stores within that zip code be shown. The consumer can also specify the zip code, and request that any conventional stores within a particular radius of that zip code also be shown. These search parameters should not be considered limiting. For example, the consumer might also specify an actual address, and a radius around that address that should be defined as the area in which conventional stores should be searched for the item to be purchased.

[0050] Suppose that a consumer has made an order, the Central Order Processor 194 has selected a conventional store, and the Store Order Processor 104 of that conventional store was notified of the order. A sales person is notified by the POS 144 of the conventional store that an item is to be picked (taken from the shelves and set aside for pick-up). The sales person can send a status signal back to the Central Order Processor 194 that the item has been picked. The Central Order Processor 194 sends a status to monitor 202 signal to the MQ Server 114, which then sends that status back to the Order Monitor 104. The Order Accessor 106 puts that data into the Order Database 102. The consumer can then periodically check on the status of the order to determine when it is ready to be picked up, or the system can generate a message, such as an e-mail, that is transmitted to the consumer.

[0051] In an alternate embodiment, the POS 144 or the Store Order Processor 140 can be set up to generate the e-mail message to the consumer regarding the updated status of the order. The decision to enable the merchant or the ICAM system to generate the message is up to the merchant.

[0052] One of the advantages of the preferred embodiment is store allocation. If a sale is made on-line and the item purchased is shipped from a warehouse, it is not realistic to allocate a sale to a particular conventional store. This can make it difficult to determine sales on a store-by-store basis. The present invention makes it possible to allocate all on-line sales to conventional stores whenever the consumer chooses to pick up the item purchased from a store.

[0053] One of the most significant advantages of the invention is the ability to draw the consumer into a store. Impulse buying is a very important aspect of retail sales. The ability to bring a consumer to a store can have a significant impact on yearly sales.

[0054] FIG. 2 is provided as a diagram that shows the operation of the Central Order Processor 194. Operation of the Central Order Processor 194 is controlled by a state machine. It is noted that the state machine defined in FIG. 2 is only illustrative of the functions that can be performed by the Central Order Processor 194. The functions can be changed to suit the preferences of the merchant.

[0055] While FIG. 1 shows the detail of the overall ICAM system, the state machine diagram of FIG. 2 illustrates the functional flow of the ICAM process. The flowchart describes the default state machine. One of the advantageous aspects of the invention is that a merchant can modify this state machine and define the transitions and actions associated with those transitions.

[0056] The default state machine 210 begins with the creation of an order 212 that is submitted 214 to the ICAM system. The state machine 210 sends a received status signal 216 after the order has been received 208. A user has several options at this stage. The user can first modify the order 218 before moving forward in the state machine 210. At this point, two things can happen. The order is either canceled 220, or is picked 222 from inventory at the conventional store. If picked 222, the order is then fulfilled 224.

[0057] The following eight figures are provided to illustrate the ICAM search services. Beginning with FIG. 3, these search services are all connected to the RT Server 110 from FIG. 1. The user is going to be utilizing the web 100 to access a database of products. A search request is submitted by way of a Master Index Search Processor Request through the RT Server 110 to the Master Index Search Processor 190. The Master Index Search Processor 190 uses RetrievalWare 230 to query the Master Index database 184 and a RetrievalWare database 232. When the desired information is retrieved, a Master Index Search Processor Reply signal is sent back to the customer on the web site 100 through the RT Server 110. The presently preferred embodiment of the ICAM system enables a localized search of specific stores or store, an outlet locator, an item search, an SKU search, a product filter, a category browse feature, and a product browser.

[0058] FIG. 4 shows the process whereby inventory verification is performed. The web site 100 generates an Inventory Verification Request signal 240, which is sent through the RT Server 110 to the Central Order Processor 194. The Central Order processor 194 generates a Threshold Request signal 242 that passes through the RT Server 110 on its way to the Master Order Processor 188, which generates a Threshold Reply signal 244 that goes back to the RT Server 110. The RT Server 110 then queries either the Host Order Processor 178, the Store Order Processor 140, or the Master Order Processor 188. Only one of these processors will be configured to verify inventory. That decision is made by the merchant. Each of these processors would consults its associated database 176, 144, or 184, and generate an Inventory Reply signal 246 that is sent through the RT Server 110 to the Central Order Processor 194. A Processed Reply from Central signal 248 is then sent back through the RT Server 110 to the web site 100.

[0059] FIG. 5 illustrates the process whereby ICAM locates a product at a particular conventional store from the store itself. A Product Locator Request signal 250 is generated by a conventional store's Point of Sale system 144, and sent to the Store Order Processor 140. The signal is passed through the RT Server 110 to the Central Order Processor 194, which generates an Outlet Location Request signal 252 which is sent to the Master Index Search Processor 190. An Outlet Location Reply signal 254 is generated and sent back to the Central Order Processor 194. A Threshold Request signal 242 is sent to the Master Order Processor 188, which generates the Threshold Reply signal 244 that goes back to the Central Order Processor 194.

[0060] An Inventory Request signal 256 will be sent to either the Host Order Processor 178, the Store Order Processor 140, or the Master Order Processor 188. Only one of these processors will be configured to verify inventory. That decision is made by the merchant. Each of these processors would consults its associated database 176, 144, or 184, and generate an Inventory Reply signal 246 that is sent through the RT Server 110 to the Central Order Processor 194. The Processed Reply signal 248 is then sent back to the Store Order Processor 140, and then to the POS 144.

[0061] FIG. 6 illustrates how the ICAM system performs a product locator search from a request that is generated from the web site 100. This process is identical to that shown in FIG. 5, with the exception that the web site 100 is generating the product search instead of the POS 144.

[0062] FIG. 7 illustrates how the ICAM system performs a pricing search from the web site 100. When the customer wants pricing information, the web site 100 generates a Pricing Request signal 260 that is sent to the Central Order Processor 194. A Pricing Request for SKU-Outlet-Quantity signal 262 is sent to either the Store Order Processor 140 or the Master Order Processor 188. This choice is up to the merchant. A Pricing Reply 264 is sent back to the Central Order Processor 194 which generates the Processed Reply from Central 266 that is sent back to the web site 100.

[0063] FIG. 8 illustrate how the ICAM system performs a sales tax calculation. This process is identical to the pricing search shown in FIG. 7, with the requested information pertaining to sales tax instead of pricing.

[0064] FIG. 9 illustrates how the ICAM system performs Shipment Routing from a conventional store. The POS 144 generates a Shipment Routing Request signal 270 that goes to the Store Order Processor 140, and then to the Master Order Processor 188. Inventory verification is confirmed by the Central Order Processor 194. The Master Order Processor 188 then consults the Master Index database 184 and recalls outlet configurations and determines shipment routing when shipment is going to take place from a conventional store and not a warehouse. This information is then sent to the POS 144.

[0065] FIG. 10 illustrates how the ICAM system performs Shipment Routing from the web site 100. The process is essentially identical to the process taught in FIG. 9, except that the Shipment Routing Request comes from the web site 100, and not the POS 144.

[0066] It is to be understood that the above-described arrangements are only illustrative of the application of the principles of the present invention. Numerous modifications and alternative arrangements may be devised by those skilled in the art without departing from the spirit and scope of the present invention. The appended claims are intended to cover such modifications and arrangements.