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the zdrop™ process
zdrop™ provides a four-phase process for administering Internet auctions. The
process can be implemented in conjunction with an existing Point-Of-Sale (POS)
system or can run as a standalone application. The location of data is
transparent to the user and does not alter the drop process.
Phase I: Capture product information
The initial phase in the process provides a user-friendly method of capturing
information specific to the item to be auctioned.
zdrop™ requests specifically tailored information that allows the system to most
accurately evaluate each item. For example, a manufactured item can be further
categorized as electronics, firearm, musical instrument, sporting good, tool,
or recording, whereas jewelry items are broken down into their constituent
components: stones, diamonds, and metals. zdrop™ supports hundreds of categories
and allows for new categories as needed. Once an item is entered into a
category, the user is guided through a series of questions pertaining to the
specific item. The responses to the questions are then stored as metadata in
the zdrop™ database, which becomes the basis for the appraisal and the auction
template to be posted on the Internet.
The value and quality of manufactured goods is determined entirely by the manufacturer and
model. Once the model of an item is determined, an aged depreciation discount
and a quality discount adjusts the item’s value. The aged depreciation discount
calculates a valuation ‘deduction’ based on the age of the item determined
based on the original manufacture date versus the current date. The quality
discount is applied to reduce the value based on quality as determined by the
zdrop™ software based on answers to the system-generated questions mentioned
above.
Along with the product information, this process also links customer
information with the product and initiates the drop process. The customer
information can be imported from a host system or an optional zdrop™ module can
be loaded which allows the user to capture customer information within zdrop™.
The customer information can be owned solely by a single store, or shared
across any stores within the same enterprise (i.e. a collection of stores owned
by a single entity).
Phase II:
Estimate value of product
Using the metadata generated during the first phase, based on the system
generated questions specifically to the item, zdrop™ generates an estimated
value for each item. The results of the estimator are directly related to the
amount of product detail that is provided by the customer. Although zdrop™ is
delivered with a robust set of rules and parameters that drive the appraisal
process, it also provides administrative functions to allow each organization
to customize the set of valuation parameters. This customization feature
provides the capability for each organization to customize the set of
parameters as well as allow each organization to tailor the results estimator
to fit its individual business needs. Once the metadata is collected, it is
input into a patent-pending algorithm that determines the item’s value. For
example, based on historical data, zdrop™ knows which item’s values are affected
by additional or missing parts. The estimate can then be broken into value
ranges by quality, such as “new” versus “good” condition. The more metadata
that is provided, the more the algorithm is utilized. At any point, when there
is no more data, the estimator produces the estimate based on the data that was
provided.
Phase III: Generate contract and post auction
Once the customer agrees to drop the item for posting, zdrop™ generates the
contract, provides the capability to scan in the signed contract, calculates
the shipping costs, supports the capture of an image of the product, and posts
the auction to the user-specified on-line auction house (default is eBay). The
user is provided with two service options, which vary in price.
The Basic Services Fee is $4.99, which provides a seven-day posting of the item with a
$1.00 starting bid and a gallery photograph of the item. The amount is credited against the
sales commission if the item sells or forfited if the item doesn't sell.
The Premiere Services Fee is $9.99, which provides all of the benefits of the basic service
plus allows the customer to select a minimum starting bid with a ten-day listing instead of the standard
seven-day listing. Again, the amount is credited against the sales commission if the item sells or
forfited if the item doesn't sell.
zdrop™ is a certified eBay application that utilizes web services to interact
directly with eBay. Auctions are automatically posted on eBay, with no human
intervention, via eBay’s web services Application Program Interface (API).
After the auction item number and posting time are returned through the API,
zdrop™ automatically generates and sends an email to the customer with an
electronic link to the auction. This link allows the customer to monitor the
status of the auction.
Phase IV: Fulfill auction
This final phase allows the user to monitor the status of active auctions and
provides support for auctions that are closed. When the auction expires, an API
call is made by the software to eBay to determine the results, including the
winner’s information. zdrop™ automatically posts feedback to eBay if and when
the auction is paid. Additionally, zdrop™ posts an instant message to the seller
to inform them of the final result of the auction. If the item is sold, zdrop™
provides functionality to seamlessly accept the payment, calculate fees and
commissions, automatically generates a check for the customer, prints a
shipping label for the item sold and generates auction reports. An automated
interface between zdrop™ and a funds distribution system owned and maintained by
Wells Fargo was established so that all payment related tasks are performed by
Wells Fargo. This partnership with Wells Fargo provides a secure methodology to
insure that funds are accurately tabulated, all accounts are balanced, and
checks are distributed in a timely manner. If the item doesn’t sell, zdrop™
provides functionality to support the return of the item to the user or to
donate it to charity. Additionally, the fulfillment phase provides a variety of
reports and provides a series of functions to resolve unpaid winner items.
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