Amazon Go: No more cash desks and queues due to technology

10

December

2016

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Nowadays a lot of retail companies make use of self-scanning cash desks, to make the checkout process faster and more comfortable for the customer. However, last week web shop Amazon opened the first real-world supermarket in which the customer can pick their groceries and walk out without standing in a line at a cash desk. The customers check in with the Amazon Go application on their smartphone and can walk out, while the checkout is automatically done via their smartphone. Which could solve one of the biggest nuisances of grocery shoppers.

The supermarket is named Amazon Go and the first location is based in Amazon’s hometown Seattle, where Amazon employees are testing the concept right now.
The Amazon Go supermarket makes use of ‘Just Walk Out’ technology, which is based on computer vision, sensor fusion and deep learning. This means that the technology uses sensors across the supermarket and artificial intelligence to track the customers and the products that they pick out of the shelves. Although Amazon is acting secretive about the way their technology exactly works, retail tech specialists believe that the technology that is introduced is actually enforceable.

In my opinion this step of Amazon is good development for the company and the industry, since it actually enforces a completely new way of shopping in physical stores, which will provide new impulses for customers to keep on shopping in physical retail stores. Besides this Amazon forces the customers that would like to make use of the store to open an account with Amazon, to finish the transactions related to the products that are purchased during a visit. With this obligation Amazon will get more feet on the ground in the banking sector. Furthermore Amazon will gather a new kind of data by tracking customers behaviour within the store in an unrivalled way. With this data Amazon will be a step ahead of other retailers that do not use technologies like this yet and be able to increase the recommendations, service and experience for the customer.

Despite all these advantages, it is questionable whether the concept will actually appeal to the customers of today and will be enforced by competitors to subsequently really change the industry. For now it is still cheaper for retailers to put a cashier behind a cash desk to fulfil the checkout process. And on top of this, the cashier behind the cash desk fulfils an important function for a lot of customers that actually don’t hate the standing in the line and wait for other customers to pay part of the physical retail stores. They can answer questions and attend the customer on promotions or entire loyalty programs, which will lead to a continuous stream of customer data.

Only Amazon Could Make a Checkout-Free Grocery Store a Reality

http://www.volkskrant.nl/economie/in-amazon-supermarkt-tref-je-binnenkort-geen-rijen-en-kassa-s-aan~a4428878/

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4 thoughts on “Amazon Go: No more cash desks and queues due to technology”

  1. Do you think this would eventually be implemented market wide in all retail stores? Could this tech be used in other industries?

  2. Hi Damin, thanks for your comment!
    In my opinion this tech is able to actually change the whole retail market. However, as I stated in the blog post the current customers of a lot of retail stores are not yet ready for this kind of technology yet. They still appreciate physical service more than digital services that enable faster and more personal shopping. I think this technology will be more suitable for the future generations that grew up with tech and digital enabled customer experiences.
    For other industries it might be applicable as well or in other parts of the value chain within companies and business networks, like the supply chain and inventory management.

  3. Interesting development! I was already happy that the Albert Heijn in my neighborhood introduced the self scanning with the bonus card, which also eliminates queuing for me. The Amazon model allows to track customers better, though, and in the end enables a more frictionless shopping experience. Interesting to see the company go from web-based services exclusively to opening up physical stores such as the Amazon Go supermarket in Seattle and also the many bookstore openings that are planned.

  4. The first thought that comes to mind when reading this and many more articles about the Amazon Go development is: what are the small players (even Albert Heijn) going to do to stop companies like Amazon and Alibaba from taking over the entire commerce world? I think that every company that does not have the technology-based mindset ingrained in their culture is pretty much on a dead-end street. What do you think?

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