Online auction and method

Abstract

An online auction and method of conducting an online auction accessible over a communications network includes the step of providing a computer programmed to host the auction, the computer being accessible to a user through the communications network and adapted to provide a user interface to allow the user to bid on or sell an item on the auction. The method also including the steps of providing instructions to the computer through the user interface, the instructions providing parameters for the auction being conducted; and displaying the item for sale on the user interface with an initial sale price and prompting a bidder to bid on the item. The method further including the steps of allowing the bidder to bid on the item through the communications network, wherein in response to a bid by the bidder, the computer reduces the initial sale price by the bid value and displays a new sale price on the user interface; and using the computer to determine a winning bidder and shipping the item to the winning bidder.

We claim: 
     
         1 . A method of conducting an auction in an online environment accessible over a communications network, comprising the steps of:
 (a) providing a computer programmed to host the auction, the computer being accessible to a user through the communications network and adapted to provide a user interface to allow the user to purchase bids, bid on, or sell an item on the auction;   (b) providing instructions to the computer through the user interface, the instructions providing parameters for the auction being conducted;   (c) displaying the item for sale on the user interface with an initial sale price and prompting a user to bid on the item;   (d) allowing the user to bid on the item through the communications network using the purchased bids, wherein in response to a bid by the user, the computer reduces the initial sale price by a bid value and displays a new sale price on the user interface; and   (e) using the computer to determine a winning user and shipping the item to the winning user.   
     
     
         2 . The method according to  claim 1 , further including the step of allowing the user to purchase bids in increments or blocks. 
     
     
         3 . The method according to  claim 2 , wherein in response to the user purchasing bids, the computer grants a pre-determined amount of free bids to the user. 
     
     
         4 . The method according to  claim 1 , wherein the parameters for auction are selected from the group consisting of an initial sale price, the bid value, a pre-determined time limit for the auction, and activation of a Get-It-Now feature. 
     
     
         5 . The method according to  claim 1 , further including the step of allowing a seller to place the item on the auction for sell. 
     
     
         6 . The method according to  claim 1 , further including the step of allowing the seller to determine the bid value for the item being auctioned. 
     
     
         7 . The method according to  claim 1 , wherein in determining the winning user, the computer executes a set of pre-programmed rules that determine when the auction is over, the rules include:
 (a) a no bid rule that allows the auction to time out and thereby end the auction;   (b) a bid rule that reduces the initial sale price by the bid value and allows the auction to proceed until the auction times out or until the sale price reaches zero; and   (c) a going once mode rule that activates at the end of the bid rule and continues the auction until the going once mode times out or until no further bids are placed.   
     
     
         8 . The method according to  claim 7 , wherein in the event that the auction times out under the going once mode rule, the computer calculates the number of bids each user has made during the entire auction and determines the user with the most bids as the winner of the auction. 
     
     
         9 . The method according to  claim 7 , wherein in the event that no further bids are placed under the bid rule and going once mode rule, the computer determines the last user to bid to be the winner of the auction. 
     
     
         10 . The method according to  claim 7 , wherein in the event that there is a tie under the going once mode rule, the computer determines which user was the earliest bidder during the auction and determine the earliest bidder as the winner of the auction. 
     
     
         11 . The method according to  claim 1 , further including the step of the computer granting free bids to losers of the auction. 
     
     
         12 . A method of conducting an auction in an online environment accessible over a communications network, comprising the steps of:
 (a) providing a computer having software thereon to host and control the auction, the computer being accessible to a user through the communications network and adapted to provide a user interface to allow users purchase bids and to interact with the auction;   (b) displaying an item for sale on the user interface with the initial sale price and prompting the user to bid on the item;   (c) allowing the user to bid on the item through the communications network using the user interface, wherein in response to a bid by the user, the computer reduces the initial sale price by a bid value and displays a new sale price on the user interface, and wherein the computer continues to reduce a new sale price by the bid value in response to bids until a new sale price reaches zero or until the auction times out, the computer initiating a going once mode upon the new sale price reaching zero or the auction timing out; and   (d) using the computer to determine a winning user and shipping the item to the winning user.   
     
     
         13 . The method according to  claim 12 , wherein the step of using the computer to determine a winning user further includes the steps of:
 (a) determining if bids were submitted on the item, and in response to the submission of bids, determining if the auction timed out with bids being actively submitted or with no bids being actively submitted;   (b) in response to bids being actively submitted, calculating the number of bids each user has made during the entire auction and determining the user with the most bids as the winner of the auction;   (c) in response to bids not being actively submitted, determining the last user to bid to be the winner of the auction; and   (d) in response to tie among a plurality of users, determining the user that bid the earliest to be the winner of the auction.   
     
     
         14 . The method according to  claim 12 , further including the step of using the computer to credit free bids to user's accounts who purchase bids or lose an auction, wherein the free bids are adapted for use in a free bid auction open only to users with free bids. 
     
     
         15 . The method according to  claim 12 , wherein the going once mode includes the steps of:
 (a) instructing the computer to flash a visual indicator on the user interface to indicate going once mode has been initiated; and   (b) prompting a user to bid on the item and in response to each bid, restarting the going once mode until the going once mode times out.